Hardware isn’t where the margins are, and probably is somewhat of a loss leader for small-batch users; for hobby users I would hazard a guess that they’re running at around -10% profit on small sales to try and drive subscription revenue multipliers, and for already-paying users this change is essentially irrelevant and will have zero downside impact on sub revenue. Terrible way to run a profitable business if you fuck up the hardware undercut, but if you can get away with it, subscriptions are certainly a valid answer to maintenance of the platform over time. I still think they didn’t go far enough to make a meaningful dent in conversions from free to paying, though.
(Note that mention of Steam Linux is not about the games aspect, but about the Valve’s seeming plans to become a competitive target for Linux support to the exclusion of other consumer-focused miscellaneity. But I tend to go on about this too often, and shouldn’t have invoked it here, apologies.)
alt Hacker News
Hardware isn’t where the margins are, and probably is somewhat of a loss leader for small-batch users; for hobby users I would hazard a guess that they’re running at around -10% profit on small sales to try and drive subscription revenue multipliers, and for already-paying users this change is essentially irrelevant and will have zero downside impact on sub revenue. Terrible way to run a profitable business if you fuck up the hardware undercut, but if you can get away with it, subscriptions are certainly a valid answer to maintenance of the platform over time. I still think they didn’t go far enough to make a meaningful dent in conversions from free to paying, though.
(Note that mention of Steam Linux is not about the games aspect, but about the Valve’s seeming plans to become a competitive target for Linux support to the exclusion of other consumer-focused miscellaneity. But I tend to go on about this too often, and shouldn’t have invoked it here, apologies.)