I used to work at Valve -- on the CS:GO team, no less -- although I left nearly a decade ago. I don't know what prompted this change but I have some suspicions. Even when I was there and the loot box system was new to CS:GO, there were concerns that a lot of trading was happening outside of the marketplace. The trading happened elsewhere because you can't have more than $300 in your Steam wallet (more than this would trigger some banking regulations that Valve wanted to avoid), so anything more valuable than that had to happen on 3rd party sites.
We didn't want this for three reasons: we'd lose out on the marketplace cut (10% of all sales I think?); we didn't want people grinding the game to earn money from rare drops; and finally because 3rd party trading ended up creating a lot of scams and therefore angry players.
At the time, we didn't see any way around it: we couldn't prevent people "gifting" items to each other, and despite omniscience and omnipotence in the game and Marketplace, we weren't confident that we could rejigger the drop rates and rarities to lower the maximum perceived value of the fanciest knife to be under the $300 limit.
I suspect that the CS:GO team finally decided to do something about it and chose this. If the team is anything like I left it, they probably modeled this extensively (we had data on nearly every game ever played in CS:GO and complete Marketplace data), and discussed the change with the TF2 and DOTA teams, who also have to deal with this, and decided that the short-term fury of a small fraction of the playerbase was worth it. I wonder if TF2 and DOTA are having similar problems and, if so, whether this change will be rolled out for those games, too.
Thank you for sharing your experience and perspective.
> we'd lose out on the marketplace cut (10% of all sales I think?); we didn't want people grinding the game to earn money from rare drops;
My naive understanding is that by having skins be worth tangible and significant value; this was the primary motivator for players to purchase keys to unbox cases, which was the dominant direct revenue generator for CS.
I would guess that the revenue generated from keys (and cases, from the market cut) eclipses the potential market cut revenue from limiting the value of items to the marketplace limit (now $2k I believe), as the consequence of that is significantly less demand in keys and skins as a whole.
Without the prospect of extremely expensive chase items, the $2.50 + ${case} slot machine pull loses its jackpot. With a knife being dropped once every 400~ unboxes, the EV of a knife would be $1000 + 400*${case}. Obviously the actual EV would be lower in practice, but the point I'm trying to understand is how the monetization model works if skins are any less expensive than they were.
> My naive understanding is that by having skins be worth tangible and significant value; this was the primary motivator for players to purchase keys to unbox cases, which was the dominant direct revenue generator for CS.
Yes. The Valve philosophy on the cosmetics marketplace (we called it "the economy") is that you distribute random rewards to players and they can trade and sell and discover the value of those goods for themselves. Obviously, this was done to make money for Valve but, in theory, it's also good for the players. It allows people who have things they don't want to sell them to people who want them. And all this buying and selling happens between Steam wallets (and there is no off-ramp) so at the end of the day, it's all just profit for Valve.
But above all we wanted people to play CS:GO because it was a fun game. We didn't want to turn it into some kind of grim pachinko parlor, with players grinding out matches just to get random loot box drops. So you have to balance the potentially real dollar random rewards so that they're a fun surprise but not economically attractive enough to become a job.
It’s just a weird side effect that’s surprisingly difficult to prevent - online games have had gold farmers for pretty much as long as there have been online games with gold.
Runescape tried this back in 2007 along with completely disabling PvP; it was a very unpopular change for the vast majority of players who were not buying items.
I stopped playing the game around that time, so I have to thank Jagex for getting my school grades up.
How is that any different? It would be fine if schools banned children from bringing cash to school. If there were a multibillion dollar bullying and gambling market going on at the school, I'd demand it.
With trading. Market price is not only price. With skins there are lot of preferences. Starting for weapons they apply, not all people use same guns as much. And they might prefer one style of skin over an other skin.
If you are not in to extract most possible value, you might trade a more expensive skin for weapon you do not use in style you do not use for less expensive one for weapon you use more in style you really like.
I bet this is an on-purpose move by Valve, and I view this as a sane action. [1]
Having a game where some players only play in order to win money is, for sure, a no go. If the game is fun, then players will keep on playing it. It may also keep some money thirsty (sometimes very toxic) people at the gates.
It is also smoothing players' frustration and shopping-spree habits in order to obtain a rare item. If you have the ability to trade N rare items for another rare item then you quite surely may obtain any cosmetic item you want for a much lower investment (less boxes to open). The 'grey market' will adapt to this new value.
That's also a lesson on how a closed economy (and open ones too, to some extent) can collapse based on a single actor controlling the rules. That's fair to learn.
[1] EDIT: and probably a preemptive protection for any future legal threat (as some countries tend to prohibit money gambling in games)
I waded through some Tik Tok comment threads on this change and it was so eye-opening: there are a shocking number of people without disposable income who were seriously investing in CS items, thinking it was a retirement portfolio. I fear the crypto era has lead to even further diminished financial literacy at large… Blessed be compound interest and financial regulation.
It's hilarious to US CS items/weapons as a retirement portfolio when you could get pretty damn good and government protected monopoly by buying NFA machine guns knowing the number is capped and the price is likely to only go up. These are now being used by actual retirement funds.
Trump banned bump stocks because he thought they were too close to machine guns.
Ron Paul and maybe Massie are about the only politicians of my lifetime that held any real power that I can think of that would even entertain deregulating machine guns.
They could likely get away with banning the FRT and bump stock through amending the definition of the machine gun in congress, just not the executive branch.
The ruling on those had nothing to do with overruling any part of the NFA. Only correctly identifying that FRT and bump stocks do not shoot automatically more than one shot by a single function of the trigger, which is what congress said would be the things allowed to be called machine guns.
I mean, I think they’ve proven over the last century that the single thing they’re good at is protecting the regular payment of dividends (and of course buybacks more recently)… One might not be entirely mistaken to compare expecting much more than that from the modern state to expecting Valve to protect your skin investments.
I would sleep perfectly soundly if it relied on politicians not wanting the plebs they subjugate to have easier access to machine guns, which is what keeps their value up.
As for current NFA items holder, the constitution requires them to be compensated fair value if they are to be confiscated.
The risk is arguably lower than many single stocks, many of which are bought in retirement portfolio.
NFA firearms have an artificially high value because of the exact set of legal restrictions that the government has put in place: loose enough to not crater legal demand, yet tight enough to restrict legal supply. This market is tied to within US borders.
The government can destroy the assumptions behind this market with a stroke of the pen.
The government can destroy the assumptions on which many businesses are built, that are held as stocks in an investment portfolio. Move the goalposts to relation to international markets, and I will likely find how it applies to some other asset commonly found in investment portfolios, like perhaps the current values of some tax preparation companies.
I think you may have to check the text again? The 5th amendment says you get due process, and requires compensation if something is taken for “public use”.
Passing a law which you can challenge in court that says “machine guns are illegal now, turn them in so we can melt them down for scrap” is not public use.
You can pretty clearly see this isn’t the case. Prior to the reversal of the bump stock ban, owners of bump stocks were required to surrender or destroy them.
That's because the state argued they were unregistered machine guns, thus never legally held property. It is not at all comparable to legal, stamped machine guns then being made illegal.
The EO couldn't have forced an uncompensated surrender of a registered bump stock, were it one existed before the Hughes Amendment.
The case law I’m seeing does not seem to provide that level of certainty.
There’s plenty of flexibility in the case law for what counts as “public use”, but nearly all of it is about individual cases where the government takes a specific person’s specific property, or damages it in some way. There doesn’t appear to be much case law at all for the guardrails if the government declares an object to be illegal to possess writ large for safety purposes and requires owners to destroy or surrender those objects.
I’m not saying there’s no path where the courts would require compensation, but for the level of certainty you’re claiming, I’d expect there to be a more clear line you can draw to existing cases.
It's wild to claim with certainty "clearly see that's not the case" then just claim you're just uncertain here.
My initial claim in any case was that the constitution requires the compensation, not that there is 0% chance the government would violate the constitution.
I’m saying: I am certain the constitution does not guarantee payment in this situation. I am not certain a court couldn’t find a way to connect the takings clause and expand current case law to apply to case like you’re describing in the future.
None of the above has anything to do with the government violating the constitution.
> shocking number of people without disposable income who were seriously investing in CS items
If you meant children, with access to parents credit cards, who are addicted to gambling, you’d be more accurate. Children gambling is a huge problem in CS, which created this economy. The players know it, the influencers know it, Valve knows it and pretty much anyone who’s played CS in the recent years knows it. This implosion does nothing more than reset the system for Valve so that they can continue to make money.
How much of the CS player base is actually kids? Maybe wrongly, my view of CS is that it's a legacy game with an audience in their 30s or 40s. And that kids are mostly gambling with roblox or fornite.
CS2 is very much alive. If you look at the pro scene, most players are in the 19-25 range (some outliers are older and younger) which makes sense since it’s much easier to become a pro after 18 than before. But that also implies a healthy pipeline of young players. Obviously the exact breakdown is difficult to estimate, but I’d be inclined to think fewer people in 30s and 40s would have time for CS than in their teens and 20s. I could be wrong.
On the other hand I am not sure that most people would be playing the same game for 20+ years - I played CS religiously during my school years, but at some point, even if you keep playing games, you just want something else
It's been years now, but I used to be involved in the trading market for Team Fortress 2. There were people who did TF2 trading as a full-time job, exploiting arbitrage between markets and holding items that were expected to increase in value (and sometimes using bots to farm items).
The Mann vs. Machine update in 2012 added a new game mode that would give players loot as a reward for completing missions. Players who didn't care about the trading market (i.e. the vast majority) would look up trading sites after a gaming session to offload their stuff fast without caring much about the value. People who described themselves as "quickbuyers" would aim for the people who wanted quick and simple transactions and then sell the item elsewhere for a markup. I did this for a while and averaged $5-10 of profit per day, usually 20-30 cents per transaction. Someone treating it as a full-time job could probably have made a lot more, like $20+ per day.
That was pretty good money if you a) were a kid with no living expenses, or b) lived in a developing country where the money went farther. I was in group A. Any time I wanted to buy a Steam game, I'd put up my quickbuyer listing on the trading sites and save up the money. But I suspected at the time that most people in the scene were in group B. If I were Valve I'd struggle to pull the trigger on a major change to the in-game economy knowing that it would affect the livelihood of a nontrivial number of people in countries like Venezuela, and maybe that's the reason they seem to have hesitated for so long.
I have had friends in the 90s and 00s "invest" in Beanie Babies and Legos and make a ton of money... for a while... and then get wiped out. This is not a new thing.
Yeah, I was trying to think about that when I wrote my comment. I do think there’s at the very least a scale change between the proliferation of unregulated “markets” these days (crypto, cs skins, Pokémon cards, I’m sure others) and the “your beanie babies will be worth a fortune some day” of the past. Perhaps what’s more surprising, though, is how consumer behavior leads these markets to now actually move up and to the right for remarkably long. My sense is you were always in fact delusional to think your beanie babies would hold value, but perhaps people are not entirely crazy looking at the charts of skin prices over X years and expecting it to continue. Perhaps I’m being too harsh on the collectors and too charitable to our contemporaries…
That anyone would use a game cosmetic as a retirement portfolio is so unbelievable it has to be trolling, right? I think we might just be witnessing the grief process unfold…
It's not trolling. People living paycheck to paycheck, without much in the way of financial literacy, are big consumers of "made to be collectible" widgets because they're desperate for appreciating assets and don't know how to do better when they struggle to save up a few hundred dollars (in no small part, because of their gambling addictions.)
Funko pops, baseball cards, knife skins, it's all used this way.
It's not always instructive to assume people making seemingly bad financial decisions are acting irrationally.
People living paycheck to paycheck due to child support orders, alimony, or other judgements taking a giant cut of their paycheck are likely buying collectibles instead of on-paper stocks or commodities because they can actually keep those without the state being able to as easily take them.
Also, the sketchy looking guy buying tons of $20 scratch-off tickets could just be laundering drug money rather than making some irrational gambling decision.
I know enough people in this kind of circumstance, my own coworkers, who would be in much better financial shape if they stopped gambling. It's very common for them to one day complain that they can't afford lunch, and the next day to come in fuming because they just lost $500 because sportsball team lost.
> Also, the sketchy looking guy buying tons of $20 scratch-off tickets could just be laundering drug money"
I know these people personally, they aren't drug dealers.
Yeah, I mean the stock market is made to either pay passive income if you have millions or to slowly accumulate value through compound interest—expecting anything else is just gambling. If you’re living paycheck to paycheck, neither of the first two are particularly helpful even medium term — and it’s not… entirely irrational to go all in on option (C). I’d be really curious to actually know the scale of how many people became millionaires from crypto — I have no intuition for what order of magnitude it is. Regardless, there’s clearly a growing belief that the world is now full of such moonshots.
If you're referring to literal only scratch-offs, maybe. Gambling in general (the point I was addressing using the example), you couldn't be more wrong.
You said "buying tons of $20 scratch-off tickets". Of course I was referring to literally that. If you want to say gambling in general, no, not even that is correct. It can only be done where you mostly play against a complice and the house takes a small fixed cut. Nothing to do with lottery shit, that didn't make any sense at all.
The fact lottery tickets were one of the less practical examples does nothing to dispel the point that gambling is a commonly used method of money laundering, which was my point. Your point on one specific form of gambling might be valid but completely unmoving against the principle.
There is no need to have an accomplice, someone could just bet $20 an improbable lottery every time they sell a "hit", eventually they would win big and then have legal taxed income washed and only have to explain how they came up with $20 to end up with thousands in earnings. Who cares if they lose 20,30,50% to the house and taxes when they are happy to pay that to stay out of prison and making high margins.
In fact, watch videos of various change and counterfeit scammers, they quite often use the lottery tickets to launder their proceeds and as part of their crime.[]
Collectables are a self-explanatory asset class. Children can appreciate and understand the desire for a holographic Charizard card. Series I savings bonds are harder to understand.
I saw an absolutely shocking number of posts from people clearly on minimum wage at best with 20k or so in CS skins, buying loot boxes every week, and no other investments. Obviously no way to verify the accuracy of such statements, but my sense is you would be horrified to know the scale of the market.
I might have shared your surprise a decade ago, but we live in a world where many people use something with even less utility (cryptocurrency) readily in their retirement portfolios.
At least those cosmetic items in video games actually do something.
The Armory and the new terminal shows they are moving way from loot boxes into a kind of "proof of work" economy, in which price is driven up by grinding and limited availability.
My personal theory is that it's related to their planned launch of their new VR headset soon, and want people to be able to buy it using the Steam Store - so deflating the market means there's reduced buying power on the market, reducing ways in which people can get money 'out' of Steam by buying hardware with Steam-bux and selling for real currency.
They did this to take a bigger cut of the market because most trades happened off-platform. This new update ensures that they will sell more of their new items through their shop (contract cases) because it's going to be the only way to get the red items to fuses into "valuable" knives. They're rotten to the core.
Any market maker, such as Valve, is free to establish the rules of its own "reality".
I understand your analysis, and I certainly failed to mention that point, but making the overall value less attractive to speculators is not evidence of being "rotten to the core".
But is the game rated mature due to violence, or due to gambling? I might be okay with my kid playing a game just because it has violence, but that doesn't mean I'm wanting to sign them up for gambling, but I'm curious if the mature rating even covers that since it's more of a meta-game thing and not actually part of the "game" itself.
I think most countries have much stricter enforcement for gambling age limits, too. If you sell a kid a copy of GTA5 that's their parents problem, but if you allow kids into your casino it's your problem.
The problem is defining what falls under those laws. Companies sell trading card boxes with random contents. McDonalds had its Monopoly game. There are many more examples of things that are gambling with money, accessible to kids and still allowed in most countries.
Typically legal gambling has age limits by law, while the age recommendation for video games is just that, an recommendation. It isn't illegal for a 14 year old to play a game recommended to 18 year olds. Don't know how it works in the US specifically, at least how it works in other places.
I'm guessing the video games industry's attempt at self-regulating with PEGI and similar efforts actually paid off.
Anyone purchasing a $20k cosmetic is almost certainly not a child.
If you vote this down, pretty curious what you are thinking? That it’s a legitimate investment? The only people spending that much money on cosmetics are drug dealers.
I was recently at a lan party for a friend's 40th birthday (something I don't think any of us had done since highschool or so!), most of them are way more into gaming than me and have been consistently since childhood. I was pretty shocked at one point when they went on a loot box binge and I witnessed them drop hundreds on loot boxes etc (I don't know what it's called, the keys or whatever). Definitely didn't seem like the first time. These are adults with children of their own. There is a demographic out there of people I wasn't aware of, not necessarily whales, that have a ton of disposable income for this fluff. And valve has their hooks in them for whatever reason.
I’ve watched grown adults with kids spend hundreds on baseball tickets and beer in one sitting, too. I’m not trying to invalidate your point. But also be careful about making value judgements (“valve has their hooks in them” reads as a negative sentiment to me). People spend money on entertainment and there are worse vices out there.
Grown adults blowing a couple hundred on some fun doesn't really seem that crazy to me. How is that much different than going out to the bar, sticking a benjamin in a slot machine, or buying some collectables?
I didn't downvote you (my account is low reputation) but your argument is weak: that some skins go for absurd amount of money says nothing of the rest of the ecosystem. There can both be children and drug dealers (ab)using the same "gaming" mechanics.
> If you vote this down, pretty curious what you are thinking?
That you used a straw man. The $20k cosmetics weren't mentioned, and even if some buy these, the thing itself can still very well be targeted as gambling towards children.
"Prior to the most recent update, some Knives, like a Doppler Ruby Butterfly Knife, could fetch around $20,000 on third-party storefronts like CSFloat."
They're mentioned right there in the article this is nominally meant to be a discussion thread about.
But the argument was "they're running an online casino directed at children", the fact that someone buys the result of the gambling for adult money / $20k doesn't mean it's not, and is basically irrelevant to that statement.
They take a 30% cut on Steam, i.e. on most PC games. They are printing money. They have an absurdly high profit-per-employee ratio. That's a failure of capitalism, called rent seeking.
having a high profit-per-employee is not the definition of rent seeking.
valve is certainly not rent-seeking. it offers service that is valuable to users, and take care of online infrastructure for games published through it, indefinitely, at no running cost to the developer.
It's not "high", it's extremely high. They just have a few hundred employees while making several millions of profit per employee. More than Apple. They are printing money.
> valve is certainly not rent-seeking. it offers service that is valuable to users,
A 30% fee just for hosting the game is not valuable.
> and take care of online infrastructure for games published through it, indefinitely, at no running cost to the developer.
The cost is substantial. It costs the developer 30%. That's a huge chunk of the total revenue. Hosting a game is very cheap, and could probably be done with less than a 3% fee. Often Valve will make more profit from a game than the developer itself. Sometimes the developer will lose money (after subtracting development cost) but Valve will still make a big profit with that game.
Their high profit is indicative of the high level of value they provide. They're far from the only store to buy/sell games in. Steam's users use Steam because they prefer it to the alternatives.
While I can't argue whether 30% is actually fair, I do believe you are disregarding some benefits steam brings which may seem trivial. The hosting of online-games and facilitation of sales is not their only service. One that has traceable value that immediately comes to mind is the illusion of a central authority for achievements.
I have personally purchased many titles a second time to register my feats with steam and anecdotally see similar sentiment among older gamers. Achievements feel worthless in isolation but provide fulfillment when socially recognized. These are sales being manifested solely through Steam's position.
Now, back to whether this social permanence is worth the 30% Steam is extracting, I do have my opinions. Steam is technically "rent-seeking" from a strict economic classification, but is this more-so a case of the lighthouse or the railroad?
its probably low compare what customers and game developers are willing to pay for it.
hosting a game and running a store nowdays is very easy, but still games launch on steam rather than building their own store or using a steam competitor. if the cost was too high, people would not be using the service
> Steam factually provides a huge amount of value to both developers and to players.
This is an outright falsehood. Other providers could host those games for much less than the 30% fee. Hosting costs are extremely low nowadays. It's basically nothing compared to the development cost of an AAA game. This is often many years and hundreds of people working on a game. The hosting costs are completely minor in comparison.
By your definition, any monopoly selling you strongly overpriced stuff would be a "huge success of capitalism". But it isn't. Just because something is useful, doesn't mean it can't be massively overpriced due to competition not working as it should. Proper market competition should ensure that no company can extract huge profit margins for trivial things. Like hosting games.
It can be helpful to look at it less in terms of what it costs Valve to run their service and more in terms of what value developers get from Valve for the money.
I'm in the business and I've asked two different heads of large, very well-known AAA studios how they felt about Valve's percentage, and they basically told me the same thing: They had their teams do rigorous analyses of what it would cost them to 'replace' Valve for their games, and concluded it would cost roughly what they were already paying Valve. So they had no incentive to move off the platform. Look at how many publishers have come slinking back to Steam after trying to go solo -- there are good business reasons for that, and it isn't just about the stubborn fact of their huge social graph.
If it costs that much to replace Valve for your game, it's hard to argue that what they're charging isn't fair.
As others have pointed out, Valve does far more than just host. Shipping a multiplayer game and want comprehensive protection from DDoS attacks? Use Valve's datagram network for no additional fee. Don't want to host your own lobby servers? Use Valve's for no additional fee, they'll accommodate hundreds of thousands of players with no trouble. Want to sell your game in a zillion countries? Valve's got you, easy peasy. And discovery is a thing -- Valve sells a whooole lot of games just by putting them in the carousel in front of players. This is huge, huge value.
And as a player, I'm actually really happy with what they're doing with some of their cut: They saved gaming on Linux, and I love my SteamDeck. So that cut is benefiting me very directly.
Valve delivers a ton of value for the cost. If someone wants to try to do better, Valve's not stopping them, but I can tell you that as a player and a gamedev, none of the other options are remotely enticing to me.
Epic, Steam's only serious competitor currently aside from maybe GoG, just had a bug in their launcher that had all Fortnite players have to redownload their entire 150~ GB game. The cost of hosting aside, the capabilities of these companies to host their own games pales in comparison to Valve, who hasn't had a single bug in downloading or updating any game in the decade and a half I have used their launcher.
Considering how alternative storefronts can't even get automatic updates to work consistently, the most basic functionality of a games storefront (more important than purchasing even, since if you can't get what you purchased, it's useless), it actually doesn't seem obvious to me that other providers can easily host their own games. Even putting aside everything else Valve uses their cut for (hosting a community forum for every game, hosting a mod DB for every game that wants it, metrics tracking, opt-in soft DRM, providing server hosting, maintaining Proton so your game works on Linux), the cut seems almost reasonable even just for hosting when nobody else is able to do it right.
> Other providers could host those games for much less than the 30% fee. Hosting costs are extremely low nowadays. It's basically nothing compared to the development cost of an AAA game. This is often many years and hundreds of people working on a game. The hosting costs are completely minor in comparison.
Steam does far more than just host, and everyone who uses it knows this, so it's clear that you either have no idea what Steam does (in which case you should not be commenting) or you're actively lying about it.
Steam provides payment processing, cloud saves, ratings, game tags, social integration, wishlisting and sale notification, search indexing, game discovery, a bunch of incredibly useful APIs including networking and input, Linux compatibility, and many, many other things.
> By your definition, any Monopoly selling you strongly overpriced stuff would be a "huge success of capitalism".
This is not only false, due to the above value-adds, but intentionally false because I never gave a definition - you made one up and attributed it to me to lie about my positions.
And yes, there is competition - the fact that you don't know this is yet another indicator that you're totally ignorant of anything relevant to the conversation. There's the Epic Games Store, GOG, the EA App, Battle.net, the Xbox one/Windows Store, and more. And you know what the most popular one is, by a large margin, because it provides value to both devs and players? Steam. That's the market at work.
Your comments are false due to your total ignorance of reality, and your malicious lying about my statements indicates that you don't care that they're false - you'll say anything plausible, regardless of truth, to advance whatever agenda you have.
> Your comments are false due to your total ignorance of reality, and your malicious lying about my statements indicates that you don't care that they're false - you'll say anything plausible, regardless of truth, to advance whatever agenda you have.
They seem to live in this bubble where steam is extremely bad or something.
Nothing is as good or as bad as it seems.
I think valve is still decent but I prefer Gog-games more if I can be honest, valve has drm but I appreciate their customer service from what I know and the amount of good games it produced like portal and the steam marketplace is still a very nice thing imo.
I don't think steam is rent-seeking at all and I agree with your statement on it.
Now I still believe that CS-GO's lootboxes are still an issue tho, maybe I am not understanding the significance of change so much
Steam still does nothing to prevent gambling for children and people selling the skins on the other websites, I am not understanding how this change changes that, I read some other comment in here which said that you can have contracts which convert the rare to extremely rare Only in steam marketplace so maybe they stopped the other shady websites/the youtubers they sponsor by limiting their influence....
I don't understand :/ I still feel like Steam had turned a blind eye to child gambling for a long time and Coffeezilla had made a video about it which I can refer to.
> There's the Epic Games Store, GOG, the EA App, Battle.net, the Xbox one/Windows Store, and more. And you know what the most popular one is, by a large margin, because it provides value to both devs and players? Steam. That's the market at work.
The same is true for linux/Windows as well. You could say that windows has the market at work but the point becomes moot.
It isn't as if there aren't better options (GOG) but that its rather good enough
Like I said nothing is as good or as bad as it seems, my opinion on steam is barely good enough partially because of its previous responses on turning a blind eye to the whole situation but maybe this is changing with this thing they did right now but I am still not sure how.
Other services do the same for arbitrary online shops, at much lower fees. In fact, Valve likely doesn't even run it's own payment processing, but merely integrates other services.
> cloud saves, ratings, game tags, social integration, wishlisting and sale notification, search indexing, game discovery, a bunch of incredibly useful APIs including networking and input, Linux compatibility
The development cost of these features is likely no larger than of one single AAA game. Yet they charging 30% on hundreds or thousands of AAA games and other games.
> This is not only false, due to the above value-adds, but intentionally false because I never gave a definition - you made one up and attributed it to me to lie about my positions.
You clearly stated that Steam is fine because it is useful. But anything sold by a monopoly can be useful while still being massively overpriced. Which proves that mere usefulness of something doesn't mean the price of it is justified. Which refutes your original usefulness argument.
> And yes, there is competition
Yes, but the fact that there is theoretically competition doesn't mean it is working. Large platforms like Steam benefit from network effects which come from their size alone. People will simply stay at Steam because that's already were their other games are, and because they don't see the massive 30% fee, that Valve is keeping, as some cost they have to pay. Any other platform faces a "chicken and egg" style uphill battle against these effects, even if they charge a substantially lower fee.
> Your comments are false due to your total ignorance of reality, and your malicious lying
Rather than hurling insults at me consider the simple question: If Steam was so fairly priced, wasn't charging excessive fees, how can it be that they have an extremely high profit margin? Realistically, that can only be because Valve's revenue from Steam vastly exceeds the costs of running and maintaining it.
It goes down to 20% when you have enough sales. Still high IMO. Marketplaces like steam, app store, etc, should charge based on services rendered rather than some arbitrary %.
I still prefer steam even if its more expensive than other marketplaces. They provide real value over just distribution, like their return policy.
IMO the phrase "legitimate investment" should be reserved for situations where you spend money something (e.g. kitchen equipment) that allows you to create new real-world value (e.g. food) which you can hopefully sell for a profit (it's still a legitimate investment if that fails). It should not be used for Ponzi schemes, gambling, outright fraud, or anything of the sort. Buying something and then hoping its price goes up before you sell it should not be called investing, but gambling - unless it fits in the category I just described.
Damn you’re trying to tell me that people will abandon all morality just to make billions of dollars? Who would of thought that something like that could be possible.
I honestly don't understand the logic behind policies like this. As a kid, my friends and I loved to buy Pokemon and Yu-Gi-Oh cards for a few years, and while I think most adults thought it was pretty silly, I don't recall anyone ever claiming that this was somehow equivalent to gambling for children despite it basically the same mechanism as loot boxes; most booster packs were essentially not worth the value once opened because with the exception of a few specific rare cards in each set, the cards were not very valuable even to a collector or player of the game.
I could see an argument that there's an issue with closed ecosystems where value of an item can be changed after someone has obtained it due to control by a centralized provider, but that's completely different concern to the idea of gambling being harmful.
As a kid I viewed MtG, baseball cards, etc as gambling and often heard them referred to as such.
The loot box issue is in part how easy it is to take this stuff to excess. My 8 year old niece racked up ~1,500$ worth of charges in a game when AT&T messed up permissions after a cellphone upgrade. It’s shockingly easy for people to blow arbitrary money on this stuff as the industry is optimized to be predatory as whales make up the bulk of profits.
So I suspect physical stores being really skeptical if an 8 year old showed up to buy a grand of Pokémon cards likely tampered the backlash.
It absolutely was and is gambling, and plenty of people complain about it. I've always thought it was disgusting to make a living off of pay-to-play games targeted at children. Morally somewhere around the level of being a pimp.
I don't even like it when targeted at adults, but we allow adults to do far worse when it comes to gambling. A lot of our hollow economies depend on it. But you really have to be a moral sewer to pay your rent from kids hoping to open the right bag to hopefully energize their often very narrow, often very autistic social lives. At best you're a carnie.
Trades happening off market is also due to valve not having a way to cash out. If you sell your $20,000 item on the steam marketplace that's a lot of games you can buy, but they won't send you money.
FWIW, people were purchasing Steam Decks with the "Steam Money", then reselling the console for cash.
Its still not "cashing out", but I'm sure some made some decent money. I would assume you could sell game keys to those less-than-reputable sites as well? Dunno
Agreed overall though, these are just extensions of "happening off-market"
No one claimed that. The point was that Valve controls the API and can cut access to said API to the gambling sites. This is not like sports betting, where the gambling sites don't need any integration with the actual sport : if Valve wants, they can seriously affect the abity of the sites to function.
Yes, they provide the API that those sites need to function. That doesn't mean the API is exclusively for those sites. Just that Valve is the one enabling those sites, they're not completely independent.
Nonsense argument. They provide an api that players use, that can also be used by boys to perform trades. Maybe the problem you have with this is that they can do trades.
It would be more correct to say that most _payments_ happen off-platform. They still use the Steam API for trades, but it's just bots trading with players for nothing and payment is facilitated offsite.
Read up on the story, look at the influencers promoting it and the ecosystem that grew around it. Valve is willfully running a casino for underage and have bypassed local laws that protect against this using technicalities. It's frightening.
> That's also a lesson on how a closed economy (and open ones too, to some extent) can collapse based on a single actor controlling the rules. That's fair to learn.
> Having a game where some players only play in order to win money is, for sure, a no go. If the game is fun, then players will keep on playing it. It may also keep some money thirsty (sometimes very toxic) people at the gates.
All the change valve did was make 5 rare items to give a chance/give a extremely rare item
Earlier, that wasn't the case and were locked behind only lootboxes with extremly rare chances i guess.
So this mechanic was already there from 1000 uncommon -> 10 common -> 1(mythic?) -> rare but now it spread to even extremely rare.
The price drop happened because the extremely rare aren't as rare because now it increased the supply as more people created their rares into extremely rares and sold it on the market and more supply, less price, thus the price wipe out and the loss.
Also skins are just cosmetics, they have no in game advantage
I just searched and you get some skin when you level up but the point I am trying to tell you is that if someone actually plays the game for a long time, they get involved in its community and naturally people would flex their skin etc and they would want to get skins to feel cool as well
So its more like people playing -> wants skin / creates money. Instead of wanting money -> people playing games
But maybe someone could be playing/grinding for the skins but I genuinely don't think this is why steam did it.
Steam did it to show the regulatory power they have in game that they can wipe billions. They are creating their in game store which takes prices from online marketplace so they might tighten the regulations on it in such a way that instead of going to random websites or other parties, steam / valve will try to instead be the middleman and try to capture even more %'s of the trade
Another neat point is that if someone wants a skin in the community, they basically got cheaper now 30-40% so it becomes more affordable imo for the people playing but still
I think valve wouldn't have predicted the losses to be of billions of dollar in terms of wipeout since they had mentioned it as a small change and it wasn't even their twitter update note iirc
I think that a lot of people especially chinese people invested into it and it was a bubble in formation and then people got panicked after this news and the panic made other people panic and thus the insane billions of $ of losses.
It was a multi-billion dollar market, which blew my mind. Good on valve for bursting the bubble, but it sounds like it should have happened much sooner.
This doesn't explain though "why now?". All of these reasons would make sense, but they've been in legal disputes before in the 13 years since the game came out. And why would they suddenly care about players' frustration? The skins economy isn't wildly different now than previously.
Well, I don't know their motives, but if we were talking just about legal issues, at least in the EU we're seeing stricter laws about loot boxes this year (and I'm all in about that).
I play CS. This is good. The gambling economy and the creator economy of people pumping their marketplaces and gambling sites is really toxic. It extracts money from kids, all for a nice skin. Making them more affordable is going to make this more fair and sensible.
Remember back in the day when we just downloaded skin packs from some random Geocities website with obnoxious red text on black background and after going through the install.txt written in broken English/Italian, lo and behold your AK47 now had a proper arctic camo skin and it was so much cooler?
What was wrong with that? Doesn’t gaben have enough money for his super yachts and sword collections?
> Doesn’t gaben have enough money for his super yachts and sword collections?
Steam is still a business, but of all the gaming industry, Gaben is one of the highlights, steam try hard to be extremely pro consumer. Refunds with no questions asked if you've played less than 2 hours of the game, requiring publisher and developers to explicitly state the AI generated content thats in the game to name just 2.
> Refunds with no questions asked if you've played less than 2 hours of the game,
Weaker than standard physical store consumer protections (no playtime restriction on returns, obviously), and (much) weaker than GOGs refund: 1 month after purchase, no playtime restriction.
I believe they explicitly called out the equivalent for physical stores and european consumer protection in general when they announced the policy and lack of restrictions. Which is an indirect call out at Steam, which hasn't cared in the slightest and continues to have a worse policy.
I don't know if this has changed since the last time I bought shrink-wrapped software at a retail store, but the return policy on games and software was always that they couldn't be returned once opened, at least at the bigbox retailers in the US. I'm sure stores occasionally made exceptions, but I very clearly remember buying a copy of Oblivion and not being able to install it due to minimum specs and the store not accepting a return. I just had to hang onto the copy until I built a new PC.
This is probably a US vs Europe difference in consumer protections though.
> Weaker than standard physical store consumer protections (no playtime restriction on returns, obviously)
Huh, we have different laws and physical stores. Here, no store will take your game back if you opened the box. Maybe that changed, but in the past any game opened couldn't be returned because you could have either copied the disk, or copied to key and activated it.
2 hour return policy can already be a problem for a very short indie game. There was one which you could beat in 2 hours and refund and people did that.
GOG gets away with their policy because only people who believe in GOG ideallogy go there, and they won't refund a good game. If steam did that, abuse would skyrocket.
And in my country, unless explicitly stated otherwise, most physical goods can't be returned if they are used.
It’s far easier to just pirate (nearly all?) GOG games. Like there are torrents with big chunks of their entire store on them, and I’ve seen allusions to an unofficial “store” that just has all(?) their games on it for free. I doubt many people are abusing the refund system because going through those steps is more work than piracy.
sadly they don't do regional pricing at all, so steam price is almost half the GoG and maybe even lower. But yeah if you can buy GoG, it's better due to no DRM
While those statements are true, it is much easier to be pro-consumer when you are running a few morally dubious casinos and marketplaces to keep the bottom line healthy. Would Steam have grown into a position where it can comfortably act like this without the cash cows in the background? We'll never know.
The general market is so distorted that being seen as anti-large corporate behaviours on some policies is seen as enough to be considered pro-consumer.
The game is rated as 'Mature 17+', and Steam has an age confirmation page before accessing the store page of the game. Are you expecting Valve to add ages verification based on ID like the new UK law to block all the kids?
I thought we had parents for you know, parenting. It shouldn't fall into a company to manage what a kid is doing when the product is not for kids.
It's not that simple. The real problem is that Valve allows items to be sold in markets outside of Valve's control which allows third party gambling websites to operate. And you guessed right, they basically don't care about your age. Valve of course knows this but won't do anything, because they make profits off all transactions happening in third party markets. Plus the whole professional CS tournament scene is sponsored by these predatory casinos. Coffeezilla did an in-depth piece on this: https://youtu.be/q58dLWjRTBE
> Plus the whole professional CS tournament scene is sponsored by these predatory casinos
I once had a glimpse behind the scenes of the online sports gambling industry (only for a few months—turns out that was my limit of how utterly disgusting an industry I could participate in and still, literally, sleep at night!) and it answered a question for me.
The question was: “How did professional gaming get so incredibly big so very fast?” Its quick rise seemed to me to have started well before the broad normalization and rise of gaming in mainstream pop culture, so had always seemed to me like the cart coming before the horse, and I’d never been able to figure out how or why it’d happened that way.
The answer was gambling. Professional video gaming is all but completely a gambling industry. That’s where the money and promotion came from. Sponsorships, sure, but that’s secondary and would drop off to a large degree without the boost from gambling. And I mean gambling on the matches, not just sponsorship by gambling sites. It’s a betting industry.
(Online gambling’s also all wrapped up in right wing political money and funding right wing media[!] in, at least, the US, was another thing I learned that I hadn’t expected)
I think gambling came in more in later waves. The first wave of popularity (mostly StarCraft, LoL and fighting games) tended more towards funding from sponsors, and not gambling ones (red bull, monster energy, gaming peripheral makers, the game devs themselves, mobile games).
I don’t know much about lol or fighting games but the starcraft pro scene exploded after a gambling/match fixing scandal back in 2010! The first wave absolutely had this problem
> I once had a glimpse behind the scenes of the online sports gambling industry (only for a few months—turns out that was my limit of how utterly disgusting an industry I could participate in and still, literally, sleep at night!) and it answered a question for me.
I worked in online gambling for about 10 years in the UK. I found how charities and local/national government worked far worse and I was far more frustrated with their attitudes.
e.g. I found an SQL Injection vulnerability with dynamic SQL in a large UK charity (I won't say which one). I reported this to my boss. He kinda just shrugged his shoulders. Similar attitudes were present in local government. The gambling industry was the complete opposite and took security very seriously.
What bothered me the most about charities and government was that on the outside they were giving the impression of having a virtuous purpose. Whereas the gambling sites didn't, it was simply "Try to win some cash".
As a former addict (alcohol), I don't have much sympathy for people that blame the companies for the problems of addicts. The problem ultimately lies with the individual. I was the one that choose to drink. The brewary, the bar, or the off-license never forced the drink down my throat. People choose to go to the casino, in the same way they choose to go to the bar.
> The question was: “How did professional gaming get so incredibly big so very fast?” Its quick rise seemed to me to have started well before the broad normalization and rise of gaming in mainstream pop culture, so had always seemed to me like the cart coming before the horse, and I’d never been able to figure out how or why it’d happened that way.
Many of the classic videos games were made to relieve you of change in Arcades. Nearby to where I live there are still classic seaside arcade. They still have machines similar to Sega Rally and Time Crisis there. Video gaming and quasi-gambling have been intertwined since the birth of the industry.
> The answer was gambling. Professional video gaming is all but completely a gambling industry. That’s where the money and promotion came from. Sponsorships, sure, but that’s secondary and would drop off to a large degree without the boost from gambling. And I mean gambling on the matches, not just sponsorship by gambling sites. It’s a betting industry.
This is all professional sports (even going back to long ago as the Roman Empire). There is nothing special about professional video gaming.
The industry saw that people were interested in watching matches between highly skilled people. Any form of entertainment/news/sports is bankrolled by advertising and/or gambling.
Many of these large events came out of more grass roots events like large lan parties. These were pretty big in the late 90s to early 2000s.
> (Online gambling’s also all wrapped up in right wing political money and funding right wing media[!] in, at least, the US, was another thing I learned that I hadn’t expected)
Gambling tends to attract the more profit orientated which roughly aligns with what is considered "right wing" (at least in the US). I found the industry to be pretty apolitical as a whole. Many of the C-suite and above seemed to be actually relatively left-wing at least in some view points. It was odd when the top executives were far at least on somethings far more to the left than I was.
Should 17-year-olds be gambling? They're still in high school, the high-tech excuse of blaming the parents while pocketing billions of dollars is odious and convincing a jury to slap these companies with tobacco industry levels of damage remains feasible.
You can make a non-toxic, high quality free to play game, e.g. Beyond All Reason. Of course there will be no marketing budget for that game so most people won't know it's there.
Ideally kids wouldn't be participating in real world transactions at all, and I'd love to see the numbers of how many were actually kids who directly went to gamble I stead of being pushed into it by streamers which is where I see it constantly.
> Now, thanks to a recent update from Valve, the latter is in a downward spiral, having lost 25% of its value — or $1.75 billion — overnight
The fact that they made this change to make these items far easier to simply earn should say a lot about the ethos of the company though.
The thing is Valve is clearly aware of the fact that it’s getting kids addicted to gambling. They have the data. It’s extremely ubiquitous. This has been an ongoing issue for a while and Valve has rightly been criticized for willfully getting kids addicted.
Yes the parents have a responsibility to look after their kids. But that doesn’t give Valve a free pass, particularly when they used dark patterns to appeal to children.
> Yes the parents have a responsibility to look after their kids.
How? Individual parents can't fight off predatory corporations entrenched in mainstream culture going after their kids. They need to make a go at Valve.
edit: Rereading, I guess that was kinda the point you were making?
I agree we should go after companies clearly engaging in profit-above-all, making societies and future generations worse from the start. Make them hurt, make them bleed bad, take tens % of their global revenue (not profit, thats easy to game).
But - parents are responsible too, more than anybody else. Gaming is generally bad for kids, physically and mentally. Come on, everybody who cares knows that for past 2 decades. Screens generally fuck up kids properly, the younger and more interactive the worse the result. Kids need tons of physical fun and tons of continuous social interaction in larger groups, doesnt matter what some echo chambers claim, 'digital skills' are not something your kid can anyhow miss on.
Its supremely easier to fuck off kids, leave me alone, my adult life is oh so hard already, here play some more, give me some break. Adults being glued to phones hard themselves. Results are what they are. Its called universally bad parenting, by psychologists and various experts for a reason. No sympathies for parents there, but I feel sorry for all those kids whose potential is squished into various anxieties and abysmal social behavior.
Talking all this and much more as parent of 2 small ones, luckily for them environment we are in is firmly agreeing with all above.
When you say easier to simply earn, I understand it as you think they do this to benefit their playerbase / users.
Yes, it says that they want a bigger cut of the sales when those items are sold.
Not sad this hits the trading sites as that will also likely mean fewer will get scammed as they will stay in valves market, but saying valve is doing this for the users is crap, they do it for the profits, and maybe to stay under the radar of additional lawsuits regarding gambling laws around the world.
> The fact that they made this change to make these items far easier to simply earn should say a lot about the ethos of the company though.
Them letting it happen for literal decades while being highly aware of what they're doing says more about the ethos than this, in the grand scheme, tiny move.
Don't get me wrong, me as a person who does not participate in any kind of this gray-area gambling has basically a lot of net positives from Steam and Valve. But this doesn't make them a pro-consumer company.
They're still greedy capitalists, and it shows in many different perspectives. They may be "better" to consumers than the average, but still.
I see people doing this a lot in Deadlock, Valve's next game that's in pre-release stage now. There are all sorts weird and fun skins people play with through mods, some of them definitely not copyright-friendly.
I wonder how Valve will handle this once the game is ready to be released - will they just blanket ban the mods? (seems likely, and the community is even probably ready for it so will not be too pissed off at the move.) Or will their monetization route be something else this time, not "hats" like usual? (I'm hoping so, although I can't imagine what else it could be without being pay2win.)
All Source games, not just Deadlock, did and still somewhat do have a strong modding scene. The way it's handled now is that official Valve-hosted servers have a config option called sv_pure set that prevents most mod .vpk files from loading on connecting clients (though some things like custom HuDs are whitelisted by this system). Once Deadlock gets paid cosmetics you can expect sv_pure to be turned on for Valve servers, which 99% of the playerbase will exclusively play on.
'sv_pure' exists and says no for the official servers, sorry
Community servers are a thing, so is a worse experience. The well-maintained community days passed. We wanted curation and we got it: matchmaking and even our customization/spending.
Which is an easy technical problem to solve, but the liability of abuse when sharing user content with other users is not palatable.
It is also not impressive to others, not a status symbol, and that's actually the purpose of skins in the modern day. No one grinds 1000hrs of warframe for a skin just because they think it looks cool, they think it makes THEM look cool. They want people to be impressed that they had $2000 to spend on a knife, not that the knife skin was neat. The skin is an auxiliary component to the task.
This is what turned me off of Global Offensive, and CS2 I guess but it doesnt look like much(if anything) has changed between GO and CS2 compared to the changes made from 1.6 -> Source -> GO.
Looking back to ~2012/2013 and its seeming to be clear now that the introduction of weapon crates, the steam marketplace, and all of the other MTX in all of their(proprietary) competitve games may have been a good indication that these would be the last games Valve would develop in-house.
To be fair though and just to give a counter-example, the "clout chasers" with the $1000 knife skins is essentially the same as the bragging rights of a 4/5/6 digit steamID during 1.6 and CS:Source. Although flexing SteamID length was something I only really saw in the competitive scene and of course had a much smaller(unofficial) market.
Oh well, RIP Steam games, long live Steam software(their platform/Proton, etc) and hardware...minus the steam controller.
Where do people get this impression? It's not trivial to build user comments on a web page let alone a proper chat app but people think it's easy to share game assets for some reason.
Making it cheaper reduces the status symbol aspect, since that's mostly about signalling wealth. But maybe not the rarity/exclusivity signals for items made artificially rare or hard to get.
That's sad. I remember a time before sv_pure. Sure, people installed transparent wall textures, but there was also a lot of cool customization to be done. And it was just your game, before streaming.
I was thinking of your description of the situation before sv_pure. What you wrote sounded like "sure some people completely destroyed the game but you got to see some cool skins". Skins can't make up for wallhacks, and wallhacks won't let you enjoy the skins. It wasn't a tenable situation.
Well, both. I wish less servers had enabled sv_pure in extra strict mode, but it was a solution to the wallhacking and extra loud footsteps. It was also the start of the decline of being able to run your own mods.
> Doesn’t gaben have enough money for his super yachts and sword collections?
Isn't most of this trading done on 3rd party services though? I mean sure, Valve is indirectly responsible for allowing trading of rewards like this, but they don't control the market values themselves and only profit indirectly from it.
Which does make me wonder about their other popular collectible game, TF2 - they don't update it, like, ever, but it's still popular and they can potentially make huge amounts of money from it. But they can from the Half-Life franchise too.
TL;DR I don't really understand Valve, but it doesn't really matter because they're swimming in money regardless.
This provides a continuous revenue stream that allows maintenance and improvement of the game without affecting gameplay. It's entirely cosmetic. Don't participate in it if you don't want to. I played with stock skins majority of the time till a friend gifted me an AWP Redline after staying at my place. It was cool but to someone who just wants to enjoy the game it hardly matters. Besides you can go to various private servers and play with whatever skins.
That era was nice but it has a different problem. People will pearl clutch about kids getting exposed to someone's custom skin making their character nude, or putting curse words on the side of a gun or whatever.
No he doesn’t. He’s greedy. Saw the freak on the train the other day the fact that he would stalk a random guy who’s been criticising him just shows how weird the man truly is. This wasn’t in the US btw.
Most of the scarcity in artificial economies like CS is (just as with trading card games) manufactured and vulnerable.
Seeing what happens with a rug-pull in a billion dollar artificial economy like this is a valuable lesson for anyone watching.
If/when the huge Satoshi bitcoin stash gets traded in, we'll see similar outcomes there too.
I'd say that's true: if you have one skin, there's virtually zero production cost to making more copies of said skin.
It's not that different for many things in the real world, I suppose (eg: if you sell way above cost, then your cost is also arguably zero), but I'd say it's magnified in the digital world (or even with NFTs).
I got really into Lorcana last year, spent $40 on a particular rare card I needed for a deck. Out of curiosity I bought some cards for $3 each from Aliexpress, and got myself a jewelers loupe.
The cards were literally indistinguishable even with the loupe. I quit buying cards after that. It’s a suckers game if I can’t tell the difference between a $50 and a $3 card even when I know one is fake. Sure enough, a few months later the prices have absolutely cratered for the cards.
The only ones they couldn’t copy exactly seemed to be the “enchanted” cards, which sell for hundreds or thousands of dollars.
Isn't most of our technology based on technologies invented to maximize killing in world war 2, or alternatively as a way to maximize monetization in sleazy ways?
World War 2 took at most about a decade (depending on who you ask). The history of development of our technology is much, much longer. I doubt 'most of our technology' is based on anything that happened in WW2.
It's just that technologies are all connected, so if you want to make them look bad you can do so. Is fixation of nitrogen into ammonia something that improved billions of lives through fertilizer, or something that enabled manufacture of many millions of tons of explosives? It's both.
Actually, no. Even a perfect quantum computer can only attack a key if its public key has already been revealed on-chain, which is only the case for a small amount of coin. The other QC attacks rely on cracking a private key after it was broadcast, and before the transactions make it into a block.
Technically, "abandoned wallets" is not something that exists, all you have are "unspent outputs" of transactions. For QC attacks to work the public key to a private key has to be revealed, for modern addresses that only happens when you spend coins, not when you send them somewhere.
I guess some people call early P2PK (pay to public key) addresses "abandoned", but we simply don't know if somebody still controls them.
In a scenario where you have a powerful enough quantum computer and are able to break the encryption you can access any wallet (I.e. the system would be done, and the value would be zero).
It's a dumb analysis of the situation that ignores what would actually happen:
A new wallet cert would be created that uses more bits. Enough that a brute force even with a quantum CPU would take too long. Then you transfer the funds to the new wallet. Abandoned wallets might be claimed during this transition but overall the deflationary trend of btc won't really be effected long term.
I think having Trump whisper in your ear before the next Truth Social post is the least effort way to win at Crypto. Inventing a viable quantum computer seems like way too much effort for the bros.
The purpose of the update is certainly not to reduce the cost of these items, but to better position Valve to earn this revenue steam, as opposed to third party scalpers. Looks like it's working.
They don't care about the resell value since they don't earn a commission on those sales.
The point is that, for as long as items can be transferred in game, they are always convertible to cash in the real world. Inserting artificial friction inside the game to increase scarcity, such as limiting convertibility of items, will drive those trades away from the game economy and into the third party ecosystem where the dollar rules supreme as the super-convertible means of exchange. So you have an induced scarcity that in effect drives third party profits.
By increasing in-game convertibility, the trades are directed to other in game assets that are a just a proxy for loot boxes, i.e money in Valve's accounts. So prices crashing in the third party market signal that players have a cheaper and more direct route to acquire them - give the money to Valve - which also generates the supply of new rare items as those loot boxes are opened.
It's a smart economic move.
Buy that doesn't mean the prices will stay low, since they can always control the overall scarcity, or add new, rarer and more exclusive items. The total amount of money they extract from "kids" is ultimately linked to their ability and willingness to pay.
Glad to chat with someone who understands in-game economies. I agree, but for a different reason. I don't think Valve cares about the economics that much. I think it's more of a product strategy move.
They have been threatened numerous times with lawsuits over the gambling aspects of the IAP. This moves completely de-risks that. As you said, it's not going to affect profits very directly. It will however make the speculative market collapse, and keep players engaged within the game's economy.
A few months ago, I realised CS:2 is more than 60GB and still barely worked on my M1 Pro Mac. I tried with these three: Whisky, Sikarigur, and even CrossOver trial. A friend suggested I should try some kind of partitioning and install Windows on that. I definitely will never try that.
CS:1.6 (which is what I still would want to play) is history unless I clasp my nose with my toes and then hang upside down from a ceiling fan and request someone to switch it on and then pray it works and keeps working. It doesn't; it crashes with flamboyance. There are some browser options, but that's another story altogether, and that too if I can find enough players there, let alone with good pings.
I finally realised that the only computer game I ever loved playing and played really a lot— albeit with gaps worth years in between after college— is just gone for me, and there's no coming back.
I guess now I am too old for all this, and maybe that's the point. Possibly someone who is on the older side will not buy these skins and whatnot; the company's focus is rightly not on us at all.
(PS. I always felt distracted with those skins; even in those younger and much younger days)
CS 1.6 ran just fine for me just now on NixOS. Literally just clicked install in Steam and ran it. Aren't Macs incapable of running most games? Get a $150-200 n150 mini PC and install Linux and it should run most things before like 2010 (and probably later) at 4k 60 fps while sipping like 10 W and running completely silently.
Thing is I don’t buy devices more than I absolutely need so that’s just a phone and a laptop. I will try this with NixOS because I have never tried NixOS in the first place. Brew has been enough so never tried anything else and also a lot of FOSS tools I use on my mac pro treat Brew as some kind of standard so that’s there.
FYI NixOS is more of a power user distribution (the draw is it's driven by declarative configuration management). Something like Bazzite is more targeted for e.g. gamers and may be more appropriate if you want a more off the shelf experience (I don't have experience with it but see it discussed a lot). If you only have a mac you might not have much luck though.
The n150 mini PC suggestion is because they really punch above their weight for being so cheap if you otherwise don't have usable hardware and want to play older/less demanding games anyway. They also make for extremely snappy workstations (on Linux. They come with Windows 11 which is super laggy). And they're like 2 inches * 2 inches * 1 inch, so tiny. If you're doing anything other than AI or something like video editing, they're a fantastic value.
Same here. I play the game happily. I would prefer to switch back to the good old "This games costs 50 $" which will also harm cheating. Maintain it and release sometimes an upgrade for a fair sum, keep the old one playable.
It shall not be a marketplace for gambling and cheaters.
Not it, Valve. Valve designed and implemented the system. Gabe Newell, founder and own of Valve, is one of the people responsible for introducing gambling to children. Children who grow up and develop a gambling addiction.
Just because they made some good things doesn't mean we can't call them out on literally their biggest, ongoing, evil.
Yes, let’s blame the f2p game dev when there are literally streamers pumping fake platforms, doing fake wins, marketing gambling sites at kids. Valve did that
It's Valve that created the loot box mechanics (i.e. gambling). That's the foundation on what everything is built. And even without the adjacent ecosystem, it's still Valve that's exploiting children by introducing gambling to them.
I have no skin the game, literally or figuratively (buying some 2d sprites for a virtual weapon is childish and pathetic from grown up man point of view and kids should spend 0 time in such game... either buy a real gun, get into ie paintball for the kick of the hunt or find something else that feels amazing and doesnt involve sitting on your introvert ass, worsening isolation and mental issues), but - your argument is very weak whataboutism, and ignoring who introduced it all, to weakest members of society to prey on addictivity of it all.
Pathetic all around, imagine I am giving you a minus I cant give, and expecting better from you next time.
I doubt it's going to change anything, this manipulated market will adapt and continue to extract money from kids. The cynic in me could even say that this change was pushed by Valve to take a bigger cut of the skin market (most trades are supervised by 3d parties). Coffeezilla investigated one of the many casino sites, there's a lot more to it.
I wish I knew what happened in the past few years, because steam was supposed to ban csgo gambling and trading sites, but you can see their names plastered all over twitch every day.
Society raises children, it's not fair to expect parents to police everything their child does. I agree often parents should be more responsible and not always take the easy way out.
But expecting them to individually fight billion dollar corporations that deliberately court children with damaging addictive services is asking too much.
It’s hard to express how frustrating it is to try to allow kids access to tech and the Web (it’s kind of important that they have at least some access! And isn’t a bunch of this allegedly for super-charging learning and exploration of the world?) while basically every platform and vendor (of most any kind) except Apple’s and Nintendo’s stuff is somewhere between mediocre and annoying, and utter shit on this front (even, and in some ways especially, open source operating systems) and none of these goddamn things coordinate or communicate with one another (and of course SSO, basically a necessity for even starting to tackle that kind of problem, is an “enterprise” feature for almost every vendor)
Then we’re told this is all our fault. Meanwhile schools send home devices that don’t lock or at least disable Web access at night, and I can’t admin those to fix that dumbfuck oversight. To point out just one of many ways we get undermined. This is a whole bunch of stress and work that simply did not used to exist for parents and I absolutely get why a lot just stop trying.
You can monitor and restrict Steam usage with parental controls. This is no more unfeasible than WiFi and device time limits, and last I checked, children don't carry a credit card. What's the mystery here? An 8 year old is not accruing bitcoin to buy skins.
Meanwhile you have users here that will tell you that refusing to give their kids smartphone or even any video game is not that hard, but it seems needsly restrictive.
AFAIK you don't need a credit card linked to the account, you can get in-store credit from selling the guaranteed drop items from playing a few matches, this is enough to get you started trading.
It's literally "The first hit is free". The sketchy gambling sites spot you bonus skins and stuff for the same reason. It doesn't matter, they don't actually have to ever pay out, so they can just give you fake money to get you addicted.
Unless they're using their own money with the blessing of their parents, this remains in the realm of tin-foil-hat paranoia. There's no reason to believe we're in child gambling crisis because of fake money.
This is good news. It seems some parts of the gaming industry are starting to recover.
I contend that games like Team Fortress 2 were also ruined by the F2P loot box crap. It's not that they took anything away, but it attracted a certain kind of customer that is very unappealing to the prior base. The "hats" made me walk away from TF2. No one on average seemed serious about the core gameplay anymore. Taking away that up front cost to play cheapened the experience for the existing paying customers. It's like going from shopping at Whole Foods to Walmart.
Robinhood is your go-to application if you want to gamble legally and efficiently without (as much) fear of a single actor ruining your day.
1) My childhood which coincided with peak of unregulated lootbox-skin markets (around 2013-2015). And I and my CS-playing peers had a happy childhood because of… skins gambling.
Most of us were able to earn money to buy a pizza or some additional snack betting on teams, or trading keys. Some exceptionaly lucky or with natural born trading skills were earning serious money — from quater to multiple salaries of an adult.
Maybe because casino-tourism in Belarus made people here slightly less prone to gambling, or maybe parents were not used to gift their children micro-transactions — e-sports betting, gambling and trading was financed mostly via in-game drops, returns from these bets and trades, and of course, sometimes, pocket money (which, on average were like 3$ per week).
That said, in modern times where micro-transactions are so common that you are ok with giving your kid V-bucks as birthday gift, I want say that anti child gambling narrative is a good thing.
2) At that time, and afaik it is true even today — you could use skins as a virtual currency to pay for a real things. It was proto-cryptocurrency/NFT in terms of being KYC and AML free.
This is really big market. There are aritcles on NYT about real life terrorists buying real guns for skins.
But without US-centric sensationalism, I beleive you can still pay for VPN or ChatGPT in very sanctioned Russia in CS skins. This can be also done with crypto (and mostly done now), but crypto has learning curve and you already playing CS.
Reading this makes me sad at how different my generation was compared to the new ones.
I remember when Counterstrike 1.3 came out and everybody at my school were talking about it and playing it. We would line up at computer labs before lunch started, pay a toonie and entire room would crackle with in-game radio comms, AK47 and HE going off with a room full of people side by side excitedly shouting for an hour until lunch was over.
When classes finished we would head back to the lab again and we would play endless round of de_dust 1 & 2, de_rats, fy_iceworld and the occasional as_oilrig and the rush of being the VIP and experiencing my first headshot.
Sometimes the admin running the labs would add fun mods like no gravity and weird stuff....
It was such a memorable and social fun time and it runs in complete contrast to the everything-gambling culture that has taken foothold....
> Prior to the most recent update, some Knives, like a Doppler Ruby Butterfly Knife, could fetch around $20,000 on third-party storefronts like CSFloat.
How many whales are buying an in-game cosmetic for $20K for their own use?
How much of this is day-trading? How much is investing? How much is fabricated by trading platforms? How much is money laundering? How much is a criminal payments channel?
I thought the same. Surely the number of people buying a 20k knife so it looks good when they play must be extremely low. The bulk have to be speculators.
This is true and it is also why a large portion of the playerbase likes this change. It makes many of these knives much more affordable for people that actually play the game.
The Steam Deck has essentially enabled money laundering through Steam. Before the Deck, if you sold skins on the marketplace you could only use your Steam credit to buy games on the platform, or you had to do a shady 3rd party Paypal exchange. Now, you can use your Steam credits to buy a device with value that you can resell IRL.
Before that, you could also buy the Index VR set, which probably aren't as liquid as a Steam Deck. I won a Dota chest that could only be acquired by watching tournament games in-person, and after letting it appreciate for two years it nearly covered the cost of an Index. I was thankful because I had no idea what to do with hundreds of dollars in Steam credit.
If you are in that business the question isn't really if it's against the rules or not, but if it's possible. You can use your in-game currency that you've gotten through whatever means to get a physical product that you can then resell for cash.
> Doesn’t really tie in to actual markets involving physical item.
- A designer brand has admitted to destroying its own products. Coach confirmed that it purposely ripped up bags that were returned to its stores, even if the bags were still in good condition. https://www.bbc.co.uk/newsround/58846711
Monopolies and cartels are also well known for creating fake scarcity. Fake scarcity is bad for the economy and for consumers, only a few profit from fake scarcity at the cost of everybody else.
only to the extent that they are both artificial. The totality of USD _represents_ the totality of all resources that exist under the control of the USA (ala, the people, gov't, companies etc, as well as any natural resources).
The counterstrike skins don't represent such real life physical resources.
Not really, but it's actually kinda like currency. Imagine if a government suddenly devalued all $500 bills into $100 bills, but every other denomination remained the same.
That’s not really what happens though. What happened was that 500$ bills where so rare in circulation that collectors started paying upwards of 20 100$ to get them. Valve went “yes the 500$ are too rare, we need to fix supply so we’ll start exchanging 5 100$ bills for one 500$ bill”
This had catastrophic impact on people hoarding 500$ expecting their exchange value to remain at the elevated levels.
Not really the same is it. You are confusing a stock and a flow. Currency is exchanged for something material you have to give up.
Government may indeed issue more currency, and does do so every day, but it is in exchange for something the private sector has that it wants for the public service. That isn’t a problem as tax is a percentage and operates as a geometric series - meaning that whatever government issues it gets back exactly the same - unless somebody along the way saves it.
There has to be something available to buy in a currency for it to be issued. As we see in the game.
You're forgetting the other side of the equation, demand. The reason they have value is the level of demand versus supply. The item has to have some real world value, even if that's just being able to show off.
They're are plenty of things in very short supply, bit no one wants them.
yeah CS skins is one of the biggest markets of digital-only-aesthetic-items before NFT came around (and now probably still bigger than NFTs). The main thing with NFTs was that there's no "central database", CS skins solely lives in Valve's database.
making a butterfly knife for Valve isn't hard (in the past Steam Customer Service duplicated items lost in scams). It's hard for the players because they have to "gamble" for it through paying keys to open cases.
Can you explain the shadow banking / conversion angle? All I found was that selling knives was used to get a discount on steam balance thanks to price arbitrage.
> "Selling Knives" (挂刀) refers to the technique of buying in-game items from 3rd-party (Chinese) trading sites like NetEase BUFF, C5, IGXE, and UUYP, and then selling them on the Steam Market to obtain a discounted Steam Wallet balance by capitalizing on price differences.
I'm surprised the price difference did not disappear if people make that trade.
China notoriously has intense capital controls. It's difficult for ordinary Chinese citizens to take capital out of the country. CS2 items can be bought and sold in both USD and RMB, and can be transferred between Chinese and international accounts. It's not about Steam wallet balances.
Interesting. I'm curious though, assuming I am Chinese and I trade knives for USD - where would I be able to receive USD to evade capital control? Surely not my bank account or Steam wallet. Or is it for people with bank account in both countries? But in that case crypto could be more convenient? I'm puzzled
Yes you would need to receive in a foreign USD bank account outside of China, the whole goal is to get the capital out of China and into a foreign account. Cryptocurrency transactions/exchanges are illegal in China so that's definitely not convenient! Meanwhile you can buy CS2 items with any ordinary payment method.
I feel watches and cars are different. You cant magically "print" 10000000 Bentley's so supply will be constrained and they are expensive to make. I feel the luxury is more tangible than just being rare.
A lot of real economies are based on fake constraints. Or the constraint is a closely held secret that's pretty arbitrary and not based on any grand amount of skill or effort.
CS is wild. I used to play and have like 40+ cases from free post-match drops. Because those cases are no longer supplied, the prices have been creeping up and to the right for years now; from $0.40 to $20+. I don't even know why people still buy these, but I will basically never have to pay for a Steam game again.
I briefly looked into this, there was a freelance job of making proxy bots to scrape the steam page for prices, the number mentioned here is even crazier than what I saw eg. $12K for something vs. $2K for a Karambit knife skin.
I didn't get far with the project, was harder than I thought as the proxys you can rent were blocked at least the few I tried at the time.
The problem was the rate of checking it was I can't remember hundreds of times a second to provide a "real time" ticker.
I think this is smart move. Basically any item with price higher than 1800 is useless for Valve. As that item can not be transacted on Steam's marketplace. As such forcing prices lower than this means more transactions can happen there and Valve gets to take their 15% cut on each of them.
This is exactly why my family never hoarded tens of thousands of dollars worth of arcade tokens back in the 1980s. Creating a secondary cash market for tokens wouldn't have changed my parents' minds about that.
It's complicated. Many "loot" systems in games fall somewhere between pure gambling (roulette, lottery) and a skill/effort based component.
E.g. in popular MMOs "mobs" have loot tables, usually dropping worthless stuff on kill, but with a 0.0001% chance of "awsome". You can kill these 5/sec when geared up. Is this "gambling"?
You can also buy "gold" for real dollars to buy those items of the "auction house" from people that have grinded the farm.
Poker is also skill based and also gambling. The concept that gaming lootboxes isn’t gambling because there’s some tangential element of skill involvement is just a strange way trying to protect something that is obviously gambling. It’s not complicated. The only complicated element is that these business grew large enough to get lobby orgs influencing politicians before the law got effectively enforced. You won’t ever see a casino with kids running rampant getting away with a shrug and “how are we going to enforce age restrictions” yet gaming companies get away with this all the time.
Make a regulation that if you have RMT in your game then you have to prefix the official title accordingly, i.e. "RMT: ${my_game_name}". It appears that Valve has made a change that is good for the game, but bad for the merchants. Gambling mechanics in a game are fun, but actual gambling needs to be very explicitly flagged as such and come with a lot more restrictions. I'll surely defend a person's right to gamble, but I find it insidious how culturally acceptable actual gambling has become.
I get why they wanted to do this, but I don't get why they made it this way, I mean yeah it makes a bit money in short term, but creates terrible problems long term.
First of all having 3 billions less in economy means we are 3 billions closer to recession. Worth keeping in mind that games are not essential.
Second thing is trust, without it whole steam can implode. Whole business is based on infinite purchases.
Third thing is people may do harm to themselves and this usually brings eye of Sauron.
People holding virtual cosmetic items that nominally had some value as collectables doesn't mean the whole thing was actually worth that much to society. If everybody tried to cash out their collection they would have soon found there was nothing close to 3 billion in value. The prices of these things were inflated by gamblers using them for speculation. And generally speaking, anything that teaches gamblers a lesson is good for society in the long run.
As for it collapsing Steam; not a chance. They didn't take away anybody's games, and that's what Steam is for to the overwhelmingly majority of users. The gambling addicts are a small minority and generally an annoyance to everybody else.
Short Answer: The whys can just be boiled down to gambling, weird investing, flexing wealth, sports fandom stuff, or wanting to invest in your hobby.
Long Answer:
It is a bit of a perfect storm, and you'll get a lot of mixed answers to this, however these are the reasons I see roughly in order of their impact.
1. Skins are the vehicle for gambling (you bet them instead of $). The loot boxes definitely get people hooked, but the skin gambling arena is a whole different beast.
2. Valve, whether by luck or skill, created a perfect system of scarcity. I can elaborate a lot on how this is done. The rarity of the skins is one thing, but the float system giving each drop a mostly unique appearance causes a 2nd tier of scarcity that adds a lot of value. They hired a bigwig Greek economist to develop this system.
3. The market has been stable-ish for long enough that some people view it as a legitimate safe investment. I have heard this is very popular in China, but I really don't know how this behavior is spread out globally. I have a friend with over $100k in the market (well, he did before this).
4. Almost everyone I know who plays seriously has at least invested a small amount in the game. I play with roughly the same 8 people, and 7 of us all spent $1-2k on the game, with inventories ranging from $1-5k.
My impression (?) was that he (Yanis Varoufakis) was more involved in the overall design of the Steam Community Market than the CS:GO skins system, but this is what the other commenter was referring to:
This is what I'd like to know as well. $20k - $12k at "dumping stock" prices! - for a digital item for a video game is just incomprehensible to me.
But clearly it's happening, so I'd like to understand better the venn diagram of people who have $20k completely disposable and people who are so highly motivated by their appearance in a video game. My assumptions are obviously wrong.
There is a number of wealthy individuals who whale on video games. Thats at least a part of the venn diagram. Having money doesn't remove your vanity.
But the skins are also used as a money substitute for gambling and as an intermediate item to exchange money between currencies. The skins "just happened" to be a stable enough store of value to create secondary markets.
It seems more like a market strategy than an economic collapse. Afterall they control the skin market, and this will lead more players to buy very expensive skins (cheaper than the day before yesterday, but still quite pricey). Also, not all skins went down in price, the red ones from collections with gold skins even increased in value.
That's hyperbolic. You had high profile celebrities advertising NFTs, and stuff valued at millions, that's a whole other scale.
Skins have their place when they're modestly priced, as they also have quite a modest impact. But the whole gambling, artificial restrictions and trading is quite suspicious indeed.
> Prior to the most recent update, some Knives, like a Doppler Ruby Butterfly Knife, could fetch around $20,000 on third-party storefronts like CSFloat.
> Now, that Butterfly Knife mentioned above? It's going for around $12,000, as people are essentially dumping their stock, with 15 sold over the past 16 hours at the time of this writing.
Why on earth would anyone think an item in a video game is a good store of real-world value? Who are the people buying these items right now for $12k? How the heck did we get here?
Valve employs an army of economists (notably Yanis Varoufakis as alumn) to make these decisions. It was certainly purposeful and will balance itself out.
Yanis Varoufakis is now writing and warning us about digital feudalism, seemingly based on his learnings at his Valve tenure.
Valve, as a digital feudalist, generates funds, practically for free, from both transactions of items and the lootboxes. It operates the markets on which digital goods are traded, taxes all sales occurring on these platforms.
this is what I think. The change is that 10 of the highest-level weapon textures can be traded for a knife texture: the result is that the supply of knife textures goes up, but the supply of high-level weapon textures goes down significantly more.
It's not so much a depreciation of knife textures, as a distribution of this value down the chain of item rarities.
The broader impact is that it creates a lot of uncertainty around valuations in the market. This is probably the most impactful (on valuations) policy change made by Valve in the history of the market. Now there is an increased fear that more similar such changes may be coming down the pipeline.
You might want to search him, though. As far as "highest levels of economic decision making" goes, he's not a bad choice - not uncontroversial, perhaps, but definitely qualified for it.
You trade up. I have a friend who has thousands of dollars worth of CS items, he has never spent a single cent on any of them - you play, you gain some items, you sell them which adds money to your steam account, you use that to buy something else you think might be worth something in the future.
I asked friends who play why would Valve do this. Answers were divided to:
1. Valve wants to avoid regulatory scrutiny over loot boxes
2. Valve wants to limit prices; the Steam marketplace only allows items up to 2500 usd to be traded. By averaging out the item prices (knives drop, covert-class increases) they are able to indirectly limit the usefulness and harmful side effects (money laundering, decentralized liquidity) of 3rd party trading sites
"The GOAT of expensive skins in CS2 is the Karambit Case Hardened in the "Blue Gem" pattern. While the original is costly, one Factory-New variant with pattern 387 reached a staggering $1.5 million! The rarity comes down to its blue pattern, which is incredibly rare on a Karambit."
Each instance of a CS skin is assigned a random amount of wear between 0 and 1, so two copies of the same skin can be worth more or less money depending on their condition. To be clear the value is fixed, actually using a skin won't make it dirtier. Factory New is the highest tier with a wear value between 0 and 0.07.
The game itself only distinguishes between those ranges of values, but it's possible to query the exact number via an API so I think traders will even price that in (e.g. Factory New 0.02 is worth more than Factory New 0.06).
Building a business off of another’s business is risky. There is a non zero chance that the original business will take steps to manipulate, change, alter, or outright control the outcome. That’s what Valve did.
Tomorrow Valve could decide that the value of crates is too high so they drop the price of crates to a penny a piece. What would that do to this 3rd party market? Poof.
I doubt they will touch crates. There are hundreds to hundreds of thousands of transactions on each type each day. And they take their cut on each of those.
One example I checked was about 0.20 going to Valve on each sold on market. And they sold 280 thousand of them in last 24 hours. So 56 thousand in single day by minimal effort.
Thought this might be a hilarious sign of the bubble popping (a run on cs skins) but nope:
> Following Valve's Oct. 22 update to Counter-Strike, the second-highest-tier, Covert (Red), can now be traded up and turned into Knives and Gloves. Essentially, this means that a previously extremely rare and highly sought-after cosmetic is going to be much more obtainable for those who increasingly want it, reducing the value of Knives and Gloves on the open marketplace.
They are both about signaling wealth and status. What I don’t understand about the digital items is that the people who own them are often anonymous so why signal? Signaling wealth and status IRL can also carry other benefits that don’t seem to carry over digitally.
I know people that spend gazillions on vintage sneakers. They will literally go and buy some rare designer second hand pair of Nikes or whatever with some scarce design that they only produced a few off. Personally, I wouldn't be that eager to stick my feet into somebody's well worn sneakers. But apparently that's beside the point. Nike actually on purpose feeds that market by coming up with new limited edition designs. These people have enough shoes. They don't buy them because they need another pair of shoes.
The value of money used to be based on gold. Gold has very limited practical value. It actually kind of sucks as a metal because it's not that hard compared to e.g. iron. The main value proposition is that it's pretty and shiny. But people that buy gold don't tend to even look at it. They just store it in a vault. Or worse, they get a digital receipt that proves they own the gold without ever seeing or handling it. The main value of that is that, if you wanted, you could make pretty and shiny things out of the gold bars. And because those pretty and shiny things are valuable, gold is valuable. And therefore people invest in gold. Not to make those things but to be able to sell it to others that might do those things. Of course the vast majority of people buying and selling gold has zero interest in doing that. Most gold ever mined is locked in a vault in bar form and will never be used for anything else than as an intrinsic token of value.
There are a lot of things that have no value beyond subjective esthetics and the group thinking around that. My home country the Netherlands produced a lot of fancy paintings in the seventeenth century. Those are worth a lot now. They are extremely nice according to some. People visit museums to go see them. They are worth tens/hundreds of millions in some cases.
Objectively, most people that visit museums wouldn't be able to tell apart the original from a good replica. And reproducing these things with high fidelity digitally isn't all that hard either. You can find high quality scans of almost any painting for free on the internet. And you would get most of the appreciation/emotion looking at those as you would get by looking at the originals. Of course, most people aren't that into this stuff in any case. But we appreciate these things because other people tell us they are valuable and we take their word for it. The original paintings keep their value mainly because such people keep reassuring us how rare and amazing these things are. That tends to get embarrassing/awkward with forgeries in museums where experts literally have failed to tell the difference.
The value of things whether digital or real is based on social mechanisms for appreciating things. Some things simply are valuable because people agree for whatever irrational reasons that they have value. And then some people buy these things at the market rate because they enjoy having them. Whether that's original art on the wall, some rare sneakers, or a cool skin for a game character that you engage with for many hours while playing the game. The dynamic between the willingness of people to separate with their cash and scarcity is what creates the value.
NFTs are weird mainly because they are digital receipts for something (anything) that has value. They are no different than a paper certificate of authenticity for a painting. It all boils down to the trust people have in the impressive looking stamps/signatures on the paper, or the blockchain shenanigans used to ensure authenticity for the NFT. Of course a lot of NFTs are silly. But in game worlds, ownership of skin is kind of limited as you can't really resell them easily or prove authenticity. Which is something that NFTs addresses. Which is why NFTs became popular in games.
The value of game skins is as irrational as second hand sneakers are or the appreciation for shiny metals. Or gems. Or paintings. But as long as people buy those, they have value.
The fact that women world -wide fall for this scam is a black stain on the whole gender. The Franco-Italian fashion cartel has done unfathomable damage to women’s fashion.
My wife will turn down a made in Japan Shinki cordovan horsehide bag because it doesn’t say “Gucci, LV, Chanel, Hermes, Prada” on it - and out of those really only Hermes and Chanel these days get the “wows” anymore.
“Vintage” LV commends even more value than regular LV because they used gold plating back in the 90s instead of brass for the metal parts of the bag. At 10,000$, I expect solid gold.
Meanwhile Japan will sell me a literally best leather in the world, YKK zipper bag for 300-800USD with tariff included.
this is not a gender specific issue. You can easily look at the watch-market, luxury car market etc... to see the same issue play out. In cars it's even worse when you have something like the Lamborghini Urus compared to the Audi RSQ8 which are very close to being the actual same car.
Regulation also means that children are excluded, debt is not allowed, and all chips can be settled for cash when the player leaves the property. Even the comps are regulated. The majority of casinos in the US are Indian casinos. When they aren't and are taxed by the government those funds are usually used to improve and fund the local area giving the local citizens the ability to decide, through legislation, if it should be continued or outlawed.
Finally, Steam pays taxes in the US, so the government is already "getting a cut." Games of chance are not moral. Unregulated games of chance are flatly evil.
Wasted is a rather strong word and yes, the whole argument is a slippery slope _but_ I can imagine sports that are less about glorifying deadly violence in a very realistic manner - the loot box and real money part is just the bitter cherry on top.
Glorify? This seems way too serious a take on a game that young males play because of a common, innate fascination with guns and soldiers. 99.9999% of them do not turn into manic killers who just love to kill and glorify it.
> because of a common, innate fascination with guns
Your brain after 200+ years of american propaganda... it's innate in the sense that you're bathed in it from birth through movies and games, and that a good chunk of your economy relies on producing weapons and using them.
And yet the US does have a serious problem with (mostly) young males turning into manic killers.
I'm reminded of that scene in Michael Moore's Bowling for Columbine where he's asking a concerned adult where the violence comes from, and the concerned adult looks sad and confused and says he doesn't know, even though he's standing in front of a nuclear-tipped missile being assembled at the local nuclear-tipped missile plant.
Financialisation is indirect personal violence instead of physical violence. The US doesn't have a problem with that at any scale, as long as the right kinds of people are doing it.
Any ranked matchmaking game is designed to addict you by the prospect of being ranked as elite. They have a number of insidious methods to keep your ranking low, some are even patented by the game companies themselves!
For example, if someone is getting too high, it’s nothing to pair that person with a known deserter for 1-3 games to drastically slow their progress.
No, just the promises of going pro. The conversion rate for high school athletes to the NFL or NBA is less than a hundredth of a percent combined. There are kids skipping classes and destroying their bodies thinking they’re going to go pro when they’re not.
I don't know, reading? Building something? Exploring the natural world? Sports?
Not to say that all video games are unsubstantive. But the substance in exploring virtual world comes from its uniqueness, not playing de_dust2 for 1000 hours. No other form of entertainment or art is analogous to video games in terms of the maximum time you can spend on it with totally depreciating returns.
No. If you play 1000 hours of a sport, you will at least be stronger, more coordinated, more agile. But the downsides are more about repetitive strain injury and the possibility of screwing up your joints.
Different benefits and downsides.
Of course, a lot of guys are suckered into sports-related gambling these days too.
Playing football or lacrosse is more "real" than working a desk job. For thousands of years, humans had to hunt and make tools and relied on their wits and strength to survive. Survival in the modern day is mostly a question of obedience.
I think the purpose of exploring virtual worlds like quake or counter-strike or something should not be to escape the real world but rather to experience a new kind of physicality. The purpose of playing games should be to engage in a deeper world which is more "real" than the tame one we are ordinarily subjected to.
It's why I am not opposed to video games. I opposed to overplaying video games because you ruin them, they become mundane and predictable.
How about 1000 hours of chess? Or 1000 hours of warhammer? Or D&D?
One may say you make social bonds playing them, but that stands true for video game as well. Speaking for myself, I definitely spent more than 1000 hours on summoner's rift; 15 years later me and my league friends still playing LOL together and chat about all kind of things on a daily basis.
$20,000 for a fake knife!? And I buy an item, a real one, and find later there was a cheaper price by few bucks somewhere else and I feel like an idiot.. crazy!
Yeah for a digital item with easy trading it's more like buying a stock vs a physical item which instantly depreciates. Basically holding $20k in an alternative form vs spending $20k.
Gambling mechanics for anyone under 18 should be banned. Children can't buy lottery tickets or hit tables in Vegas. Its crazy they can buy loot boxes that real life value.
FYI, this is already the case in some countries. In Belgium or Netherland, it's straight up banned, and in France we get an adapted case opening that looks less random (X-Ray: you see what's in the box before opening it, but you have to open it to X-Ray the next one)
>and in France we get an adapted case opening that looks less random (X-Ray: you see what's in the box before opening it, but you have to open it to X-Ray the next one)
That still feels like gambling, but rather than gambling on what the current case contains you're gambling on the second one might contain.
And in France specifically, the first case you open is guaranteed to not be a good item. So it's essentially the same system but with an additional $2,50 entry fee
I propose any company that flagrantly violates the intent of a ruling like that is sent to a special judge who operates in the same manner - bring forth a penalty while explicitly looking for every violation and arcane loophole to punish the company with.
To save people opening the link...in France it would be a judge not a prosecutor. France has an Inquisitorial rather than the Adversarial legal system the UK and US have. Put simply, a judge doesn't merely decide between the two cases presented to them, they try and establish the facts
Edit: I said 'UK' where I should have said 'England and Wales'. Scotland and Northern Ireland have their own legal systems, although I believe both have Adversarial systems they are different in some ways. The US system could, however, be seen as a continuation of the English system.
I'll bet apple fan boys will agree to this statement for Valve or any other company, but when it comes to apple having to open up their walled garden in EU and then using every dirty trick in the book to make it impossible, oh boy...
I'd say it's designed to diminish the pyschological draw somewhat.
Gambling is addictive precisely because that "the next one could be the one" element. I wouldn't be surprised if it has a big impact on sales.
That said i think it's still better to just ban it.
As someone who moved to the UK I find it crazy that 2p machines exist. You put 2p in, and hope to get more out. It's literally child gambling. Where I come from we had arcades with tickets for stuff, but to me that's a whole different level to money in -> money out.
I still enjoy them though, but I enjoy gambling responsibly!
There's something funny about how some countries try to enforce this and how Valve "solved" it, which I think demonstrates how silly "there ought to be a law!" thinking can get.
I believe for some regions, Valve just shows you what's in the "lootbox" (case, whatever), and you have to pay to acquire it before you're shown the next one.
This isn't to say I don't fully agree that this kind of thing is probably predatory and probably unhealthy. But I find most discourse on the topic starts and ends at the shoreline with a version of "there ought to be a law..."
So we're against checking IDs cause privacy but we also want to limit kids from accessing certain parts of the internet because gambling/porn? Have a cake and eat a cake?
Yeah I used to be for it on grounds of liberty but having seen a little of the actual industry it’s just purely corrosive, evil shit. It should be fought.
I’d maybe be OK with some kind of well-thought-through thing that still allowed friendly poker matches or sports brackets between people who actually know each other, but got the big money out of it. Maybe just ban corporations from having anything to do with it so limited-liability and serious investment is taken off the table? Something along those lines? But it’s also bad enough that I’d definitely vote for an outright ban if it came up. Complete switch-around for me on this topic, from where I was on it for years.
No casino gambling. Casino gambling is not gambling. It's putting $1.00 into a machine and getting $0.80 back, but the exact refund amount after every dollar put in is arbitrary. There's absolutely no risk to the casino, the casino is not gambling. The only gambling being done is by individual bettors, and they have an expected massive loss.
I don't care very much if people gamble with each other, and expect $1 back for every $1 they put in.* But casino games and lootboxes are specifically designed for consistent losses to the house. It's simply another tax, but on the addicted, desperate, and/or innumerate. The weakest people at their weakest moments; and if we're not protecting them, the government has no purpose.
* I actually think that it is good for people who have the same wealth levels to gamble with each other, as long as the outcomes are largely random. The problem is with vigs, and with pots that get too large to cover against a house that can endlessly extend itself.
Yeah, I think you nailed it. A ban on playing against "the house" would do it. Taking a fixed amount from each pot (as at poker tables) for play among patrons would still be allowed, but slot machines wouldn't. Your solution's much better than a full ban because it wouldn't drive as much illegal betting (a problem no only because it circumvents the law, but because for gambling in particular but for any black market, really, it tends to become connected with other criminal activity)
Enforce 18+ age rating and mandate platform parental controls. If the parents decide to let their child pay for adult content freely that's unfortunate and on them.
Going stricter isn't effective, ID check will become tools for whatever ulterior motives they have.
CS:GO is already rated 18+, and Steam already has parental controls. That has done essentially nothing to prevent it as children sometimes lie about how old they are and don't have their parents set up parental accounts to oversee themselves.
And close to 0% of children have credit cards to buy these virtual lootboxes. These mechanisms prey on getting children to beg their parents to spend money.
In practice a parent can easily forego allowing their children to make unsupervised purchases linked to the parent's card! That seems absolutely crazy.
You can have a debit card in the UK as a fairly young child. I think I got one at 12? I don’t know if there’s specific restrictions on buying in-game currency with them? I don’t know how they’d know though.
The first thing I did when I got a debit card was buy the 18 rated GTA Vice City!
Yes, and I never ran around with cash. Supposing I did get a cash gift before my teens, it would just sit in the "bank" i.e. a box in the dresser. Of course there were no gift cards or any of that crap back then, which is what you'd expect to receive today. I mean, as an adult now, what are you likely to receive: a gift card from a relative, or cash?
There's zero reason for a child to carry cash for no purpose. At any rate their lives are so structured usually that this notion that they're going to run to some store to convert it to prepaid cards is far-fetched to begin with.
I see a failure of parenting that some don't want to give credence. I'm not sure why.
they can buy pokemon cards. To be honest, I don't think CS:GO or TF2 or the like are pro-gambling. You learn pretty quickly as a kid that the best way to get good items is through trading, not gambling.
Look at the "meta-"game mechanics: you play a few games, you get a guaranteed case drop. This circa $3 case could contain anything, a $0.2 skin or a rare $2500 knife. When you open it a casino-like wheel goes over all the items and selects one randomly. There are hundreds of YT/twitch channels that open cases all day long and their target audience is children. It's gambling, and it's gambling for children.
I'm honestly really not a fan of the collectable trading card type of games (MtG, Pokemon TCG, yu-gi-oh etc). You have to pay to have a chance of getting a good card, which makes the whole thing pay to win. It should be perfectly acceptable to print off the cards at home ("proxies") so you can actually make a set that works for you, without having to pay more for having specific cards that you want to complete your ideal deck.
I personally often go to the huge bins of "shit tier" cards that my local game stores have, because I like to have some pretty cards (I often use them as bookmarks), but I don't play the game itself, so the actual mechanical value of the cards is meaningless to me
EDIT: I feel the same way about things like Warhammer. I don't know about other games, but in Warhammer at least there is a limit on how powerful an overall army can be, so sure it may not look as visually good, but just having tokens that say "squad of soldiers" or "mega death tank of doom" should be perfectly acceptable too
> It should be perfectly acceptable to print off the cards at home ("proxies") so you can actually make a set that works for you
Unless you play Pokemon TCG or MTG competitively at a national/international level, proxy cards are mostly accepted in the community.
More and more people recognise Nintendo and Wizards of the Coast (Hasbro) have money in their eyes in the card games. Pokemon cards are becoming more full-art because that's what sells for crazy markups on third party websites, and MTG are doing crossovers with whoever will sign them a license. They're both playing a risk by moving from old time players (many of whom are now leaving the hobbies) for the sake of some nostalgic "investors".
I just wish I had a local shop with a shitbin. The shops around me just sell packs (when not out of stock) and they're all marked up beyond MSRP. I just want to play the game. I don't care about art, holographic patterns and the like.
On the other hand, whenever people open packs just looking for collectable cards, they flood the market with job lots of regular cards at dirt cheap prices. I managed to get a joblot of 2500+ Pokemon TCG cards for around £20 (lots of duplicates, all regular).
Gambling mechanics is everywhere nowadays, especially in mobile games. It's almost like an industry standard. I think the only solution is to ban all in-game purchases completely.
I would like to see a ban on allowing children to play machines like the Wizard of Oz ones, where you drop the coin on a shelf in the hopes it'll push off other coins or cards you need to collect. It sounds like a skill game, and I liked them when I first saw them. But then I saw how people play them with vacant faces, like slot machines. They're casino games, not arcade.
They're an institution in the UK. They're in the arcades at every seaside town, and every kid plays them. Now that I have kids I actually think they're brilliant; for £2 each they taught mine everything they need to know about gambling.
- You sometimes win a bit along the way, but eventually you lose everything.
- The jackpot prizes are only there to lure you in, and you never win them. Towards the middle of the shelf are things like £20 notes. We noticed that one of them was getting quite near the edge, and might actually become winnable, but then the following morning its position had been reset to the back of the shelf.
- It's still fun as long as you're just playing with money you don't mind losing, and not expecting to come out ahead.
They even learned something about company scrip, from the tickets that come out of the machines and the ridiculous exchange rate between tickets and the actual rewards at the prize shop.
I asked my son on the way home if he'd put all his Christmas money and savings into the machine if I let him, and the answer was hell no - maybe a pound, but he didn't want to lose all of his money. Valuable lessons all round.
Not OP, but I would ban the tickets/prizes mechanism.
Depending on how old is “old school” for you, every game in an arcade might be fine.
If we’re talking 90’s Chuck E. Cheese, maybe half the games would be potentially interesting to play without a token payout. The others round to “roll the dice,” where there is no payoff other than a gambler’s variable reward.
I think this also covers whether skill is involved. Like for me, beating my buddy at basketball shots is mildly rewarding, but smashing a button at the right time is not very interesting even if it requires a lot of skill.
Pinball and video games I think are something that can be allowed. Even if the model is slightly predatory in this age. At least you only win game time.
Other types of partly fake skill games surely should be banned from kids. Like crane games where there is some hidden variable. And well anything in same category.
I find it fascinating how the "HN Hivemind" (and yes, I know not a real thing, but the trends seem pretty consistent) is so opposed to kids playing with lootboxes, but also very angry at governments trying to impose age verification.
Some people are opposed to kids gambling (or gambling in general) - an understandable sentiment even if i dont agree.
Some people are skeptical of the gov't and the implications of proper identification on the web (which is required for age verification). Whether you are pro or anti gambling doesn't make or change this skepticism.
I think the HN hive mind is more opposed to the concept of loot boxes in general. We don't need to go much beyond that. It follows that a puddle of industrial waste would cause trouble if it began to flow downstream.
Correction. $0 in value. Skins do not exist and are worth exactly $0. If you spend money on skins, they are worth… $0. It’s all a large scale grift money incinerator where the only winner is Valve.
+ whatever pleasure you derive from it, ig. I can understand loot box addiction, but paying $20,000 for valve character dress up? Not even like a Peter Griffin player model or something, but a slightly different looking knife? Madness
We didn't want this for three reasons: we'd lose out on the marketplace cut (10% of all sales I think?); we didn't want people grinding the game to earn money from rare drops; and finally because 3rd party trading ended up creating a lot of scams and therefore angry players.
At the time, we didn't see any way around it: we couldn't prevent people "gifting" items to each other, and despite omniscience and omnipotence in the game and Marketplace, we weren't confident that we could rejigger the drop rates and rarities to lower the maximum perceived value of the fanciest knife to be under the $300 limit.
I suspect that the CS:GO team finally decided to do something about it and chose this. If the team is anything like I left it, they probably modeled this extensively (we had data on nearly every game ever played in CS:GO and complete Marketplace data), and discussed the change with the TF2 and DOTA teams, who also have to deal with this, and decided that the short-term fury of a small fraction of the playerbase was worth it. I wonder if TF2 and DOTA are having similar problems and, if so, whether this change will be rolled out for those games, too.
> we'd lose out on the marketplace cut (10% of all sales I think?); we didn't want people grinding the game to earn money from rare drops;
My naive understanding is that by having skins be worth tangible and significant value; this was the primary motivator for players to purchase keys to unbox cases, which was the dominant direct revenue generator for CS.
I would guess that the revenue generated from keys (and cases, from the market cut) eclipses the potential market cut revenue from limiting the value of items to the marketplace limit (now $2k I believe), as the consequence of that is significantly less demand in keys and skins as a whole.
Without the prospect of extremely expensive chase items, the $2.50 + ${case} slot machine pull loses its jackpot. With a knife being dropped once every 400~ unboxes, the EV of a knife would be $1000 + 400*${case}. Obviously the actual EV would be lower in practice, but the point I'm trying to understand is how the monetization model works if skins are any less expensive than they were.
Yes. The Valve philosophy on the cosmetics marketplace (we called it "the economy") is that you distribute random rewards to players and they can trade and sell and discover the value of those goods for themselves. Obviously, this was done to make money for Valve but, in theory, it's also good for the players. It allows people who have things they don't want to sell them to people who want them. And all this buying and selling happens between Steam wallets (and there is no off-ramp) so at the end of the day, it's all just profit for Valve.
But above all we wanted people to play CS:GO because it was a fun game. We didn't want to turn it into some kind of grim pachinko parlor, with players grinding out matches just to get random loot box drops. So you have to balance the potentially real dollar random rewards so that they're a fun surprise but not economically attractive enough to become a job.
I mean... what you have is people operating rooms full of computers running automated bots to farm drops (and presumably accounts to sell later) [0].
[0]: https://www.youtube.com/watch?v=n3yS6_WDb6w
It’s just a weird side effect that’s surprisingly difficult to prevent - online games have had gold farmers for pretty much as long as there have been online games with gold.
Worth a watch imo
https://www.youtube.com/watch?v=13eiDhuvM6Y
Why not remove trade and use an auction system with a limit? Or not allowing trades under market price?
I stopped playing the game around that time, so I have to thank Jagex for getting my school grades up.
A better analogy would be to say kids are banned from bringing cash to school because that makes bullies take their money and kids gamble and bet.
If you are not in to extract most possible value, you might trade a more expensive skin for weapon you do not use in style you do not use for less expensive one for weapon you use more in style you really like.
Having a game where some players only play in order to win money is, for sure, a no go. If the game is fun, then players will keep on playing it. It may also keep some money thirsty (sometimes very toxic) people at the gates.
It is also smoothing players' frustration and shopping-spree habits in order to obtain a rare item. If you have the ability to trade N rare items for another rare item then you quite surely may obtain any cosmetic item you want for a much lower investment (less boxes to open). The 'grey market' will adapt to this new value.
That's also a lesson on how a closed economy (and open ones too, to some extent) can collapse based on a single actor controlling the rules. That's fair to learn.
[1] EDIT: and probably a preemptive protection for any future legal threat (as some countries tend to prohibit money gambling in games)
http://machinegunpriceguide.com/html/german_subguns_0.html
Ron Paul and maybe Massie are about the only politicians of my lifetime that held any real power that I can think of that would even entertain deregulating machine guns.
Which is also why the Forced Reset Trigger was not banned - they didn't think they could.
The ruling on those had nothing to do with overruling any part of the NFA. Only correctly identifying that FRT and bump stocks do not shoot automatically more than one shot by a single function of the trigger, which is what congress said would be the things allowed to be called machine guns.
I’m surprised to hear that bit, there are way too many lawsuits flying around right now in the gun the world to consider that kind of risk.
Then again perhaps the fund managers taking on fees are the real point.
As for current NFA items holder, the constitution requires them to be compensated fair value if they are to be confiscated.
The risk is arguably lower than many single stocks, many of which are bought in retirement portfolio.
There's plenty of ways to not confiscate them but impair their value.
Further restrictions on transfer, restrictions on use, disadvantaged tax treatment, requirements for storage, security, insurance, bonding, etc.
NFA firearms have an artificially high value because of the exact set of legal restrictions that the government has put in place: loose enough to not crater legal demand, yet tight enough to restrict legal supply. This market is tied to within US borders.
The government can destroy the assumptions behind this market with a stroke of the pen.
Where is that in the constitution?
Passing a law which you can challenge in court that says “machine guns are illegal now, turn them in so we can melt them down for scrap” is not public use.
The EO couldn't have forced an uncompensated surrender of a registered bump stock, were it one existed before the Hughes Amendment.
There’s plenty of flexibility in the case law for what counts as “public use”, but nearly all of it is about individual cases where the government takes a specific person’s specific property, or damages it in some way. There doesn’t appear to be much case law at all for the guardrails if the government declares an object to be illegal to possess writ large for safety purposes and requires owners to destroy or surrender those objects.
I’m not saying there’s no path where the courts would require compensation, but for the level of certainty you’re claiming, I’d expect there to be a more clear line you can draw to existing cases.
My initial claim in any case was that the constitution requires the compensation, not that there is 0% chance the government would violate the constitution.
None of the above has anything to do with the government violating the constitution.
If you meant children, with access to parents credit cards, who are addicted to gambling, you’d be more accurate. Children gambling is a huge problem in CS, which created this economy. The players know it, the influencers know it, Valve knows it and pretty much anyone who’s played CS in the recent years knows it. This implosion does nothing more than reset the system for Valve so that they can continue to make money.
i should imagine a whole slew of vitalik buterins were just created.
The Mann vs. Machine update in 2012 added a new game mode that would give players loot as a reward for completing missions. Players who didn't care about the trading market (i.e. the vast majority) would look up trading sites after a gaming session to offload their stuff fast without caring much about the value. People who described themselves as "quickbuyers" would aim for the people who wanted quick and simple transactions and then sell the item elsewhere for a markup. I did this for a while and averaged $5-10 of profit per day, usually 20-30 cents per transaction. Someone treating it as a full-time job could probably have made a lot more, like $20+ per day.
That was pretty good money if you a) were a kid with no living expenses, or b) lived in a developing country where the money went farther. I was in group A. Any time I wanted to buy a Steam game, I'd put up my quickbuyer listing on the trading sites and save up the money. But I suspected at the time that most people in the scene were in group B. If I were Valve I'd struggle to pull the trigger on a major change to the in-game economy knowing that it would affect the livelihood of a nontrivial number of people in countries like Venezuela, and maybe that's the reason they seem to have hesitated for so long.
Funko pops, baseball cards, knife skins, it's all used this way.
People living paycheck to paycheck due to child support orders, alimony, or other judgements taking a giant cut of their paycheck are likely buying collectibles instead of on-paper stocks or commodities because they can actually keep those without the state being able to as easily take them.
Also, the sketchy looking guy buying tons of $20 scratch-off tickets could just be laundering drug money rather than making some irrational gambling decision.
> Also, the sketchy looking guy buying tons of $20 scratch-off tickets could just be laundering drug money"
I know these people personally, they aren't drug dealers.
There is no need to have an accomplice, someone could just bet $20 an improbable lottery every time they sell a "hit", eventually they would win big and then have legal taxed income washed and only have to explain how they came up with $20 to end up with thousands in earnings. Who cares if they lose 20,30,50% to the house and taxes when they are happy to pay that to stay out of prison and making high margins.
In fact, watch videos of various change and counterfeit scammers, they quite often use the lottery tickets to launder their proceeds and as part of their crime.[]
[] https://www.youtube.com/watch?v=DKXmEkyl7Bw
At least those cosmetic items in video games actually do something.
I understand your analysis, and I certainly failed to mention that point, but making the overall value less attractive to speculators is not evidence of being "rotten to the core".
I would still contend and say the gambling aspect, with real money, is a net negative to the community.
I'm guessing the video games industry's attempt at self-regulating with PEGI and similar efforts actually paid off.
If you vote this down, pretty curious what you are thinking? That it’s a legitimate investment? The only people spending that much money on cosmetics are drug dealers.
Then there are the third party gambling sites where you bet items on matches in the hopes of spinning up your cheap items into more expensive ones
This part is already gambling. The 3rd party site is letting them gamble again.
That you used a straw man. The $20k cosmetics weren't mentioned, and even if some buy these, the thing itself can still very well be targeted as gambling towards children.
They're mentioned right there in the article this is nominally meant to be a discussion thread about.
People downvoting you must either not be aware of this, or have a personal stake in it.
valve is certainly not rent-seeking. it offers service that is valuable to users, and take care of online infrastructure for games published through it, indefinitely, at no running cost to the developer.
> valve is certainly not rent-seeking. it offers service that is valuable to users,
A 30% fee just for hosting the game is not valuable.
> and take care of online infrastructure for games published through it, indefinitely, at no running cost to the developer.
The cost is substantial. It costs the developer 30%. That's a huge chunk of the total revenue. Hosting a game is very cheap, and could probably be done with less than a 3% fee. Often Valve will make more profit from a game than the developer itself. Sometimes the developer will lose money (after subtracting development cost) but Valve will still make a big profit with that game.
I have personally purchased many titles a second time to register my feats with steam and anecdotally see similar sentiment among older gamers. Achievements feel worthless in isolation but provide fulfillment when socially recognized. These are sales being manifested solely through Steam's position.
Now, back to whether this social permanence is worth the 30% Steam is extracting, I do have my opinions. Steam is technically "rent-seeking" from a strict economic classification, but is this more-so a case of the lighthouse or the railroad?
hosting a game and running a store nowdays is very easy, but still games launch on steam rather than building their own store or using a steam competitor. if the cost was too high, people would not be using the service
Steam factually provides a huge amount of value to both developers and to players.
Steam is a huge success of capitalism. Suggest not using words like "rent-seeking" without knowing what they mean.
This is an outright falsehood. Other providers could host those games for much less than the 30% fee. Hosting costs are extremely low nowadays. It's basically nothing compared to the development cost of an AAA game. This is often many years and hundreds of people working on a game. The hosting costs are completely minor in comparison.
By your definition, any monopoly selling you strongly overpriced stuff would be a "huge success of capitalism". But it isn't. Just because something is useful, doesn't mean it can't be massively overpriced due to competition not working as it should. Proper market competition should ensure that no company can extract huge profit margins for trivial things. Like hosting games.
I'm in the business and I've asked two different heads of large, very well-known AAA studios how they felt about Valve's percentage, and they basically told me the same thing: They had their teams do rigorous analyses of what it would cost them to 'replace' Valve for their games, and concluded it would cost roughly what they were already paying Valve. So they had no incentive to move off the platform. Look at how many publishers have come slinking back to Steam after trying to go solo -- there are good business reasons for that, and it isn't just about the stubborn fact of their huge social graph.
If it costs that much to replace Valve for your game, it's hard to argue that what they're charging isn't fair.
As others have pointed out, Valve does far more than just host. Shipping a multiplayer game and want comprehensive protection from DDoS attacks? Use Valve's datagram network for no additional fee. Don't want to host your own lobby servers? Use Valve's for no additional fee, they'll accommodate hundreds of thousands of players with no trouble. Want to sell your game in a zillion countries? Valve's got you, easy peasy. And discovery is a thing -- Valve sells a whooole lot of games just by putting them in the carousel in front of players. This is huge, huge value.
And as a player, I'm actually really happy with what they're doing with some of their cut: They saved gaming on Linux, and I love my SteamDeck. So that cut is benefiting me very directly.
Valve delivers a ton of value for the cost. If someone wants to try to do better, Valve's not stopping them, but I can tell you that as a player and a gamedev, none of the other options are remotely enticing to me.
Considering how alternative storefronts can't even get automatic updates to work consistently, the most basic functionality of a games storefront (more important than purchasing even, since if you can't get what you purchased, it's useless), it actually doesn't seem obvious to me that other providers can easily host their own games. Even putting aside everything else Valve uses their cut for (hosting a community forum for every game, hosting a mod DB for every game that wants it, metrics tracking, opt-in soft DRM, providing server hosting, maintaining Proton so your game works on Linux), the cut seems almost reasonable even just for hosting when nobody else is able to do it right.
Why don't they?
Steam does far more than just host, and everyone who uses it knows this, so it's clear that you either have no idea what Steam does (in which case you should not be commenting) or you're actively lying about it.
Steam provides payment processing, cloud saves, ratings, game tags, social integration, wishlisting and sale notification, search indexing, game discovery, a bunch of incredibly useful APIs including networking and input, Linux compatibility, and many, many other things.
> By your definition, any Monopoly selling you strongly overpriced stuff would be a "huge success of capitalism".
This is not only false, due to the above value-adds, but intentionally false because I never gave a definition - you made one up and attributed it to me to lie about my positions.
And yes, there is competition - the fact that you don't know this is yet another indicator that you're totally ignorant of anything relevant to the conversation. There's the Epic Games Store, GOG, the EA App, Battle.net, the Xbox one/Windows Store, and more. And you know what the most popular one is, by a large margin, because it provides value to both devs and players? Steam. That's the market at work.
Your comments are false due to your total ignorance of reality, and your malicious lying about my statements indicates that you don't care that they're false - you'll say anything plausible, regardless of truth, to advance whatever agenda you have.
They seem to live in this bubble where steam is extremely bad or something.
Nothing is as good or as bad as it seems.
I think valve is still decent but I prefer Gog-games more if I can be honest, valve has drm but I appreciate their customer service from what I know and the amount of good games it produced like portal and the steam marketplace is still a very nice thing imo.
I don't think steam is rent-seeking at all and I agree with your statement on it.
Now I still believe that CS-GO's lootboxes are still an issue tho, maybe I am not understanding the significance of change so much
Steam still does nothing to prevent gambling for children and people selling the skins on the other websites, I am not understanding how this change changes that, I read some other comment in here which said that you can have contracts which convert the rare to extremely rare Only in steam marketplace so maybe they stopped the other shady websites/the youtubers they sponsor by limiting their influence....
I don't understand :/ I still feel like Steam had turned a blind eye to child gambling for a long time and Coffeezilla had made a video about it which I can refer to.
> There's the Epic Games Store, GOG, the EA App, Battle.net, the Xbox one/Windows Store, and more. And you know what the most popular one is, by a large margin, because it provides value to both devs and players? Steam. That's the market at work.
The same is true for linux/Windows as well. You could say that windows has the market at work but the point becomes moot.
It isn't as if there aren't better options (GOG) but that its rather good enough
Like I said nothing is as good or as bad as it seems, my opinion on steam is barely good enough partially because of its previous responses on turning a blind eye to the whole situation but maybe this is changing with this thing they did right now but I am still not sure how.
Other services do the same for arbitrary online shops, at much lower fees. In fact, Valve likely doesn't even run it's own payment processing, but merely integrates other services.
> cloud saves, ratings, game tags, social integration, wishlisting and sale notification, search indexing, game discovery, a bunch of incredibly useful APIs including networking and input, Linux compatibility
The development cost of these features is likely no larger than of one single AAA game. Yet they charging 30% on hundreds or thousands of AAA games and other games.
> This is not only false, due to the above value-adds, but intentionally false because I never gave a definition - you made one up and attributed it to me to lie about my positions.
You clearly stated that Steam is fine because it is useful. But anything sold by a monopoly can be useful while still being massively overpriced. Which proves that mere usefulness of something doesn't mean the price of it is justified. Which refutes your original usefulness argument.
> And yes, there is competition
Yes, but the fact that there is theoretically competition doesn't mean it is working. Large platforms like Steam benefit from network effects which come from their size alone. People will simply stay at Steam because that's already were their other games are, and because they don't see the massive 30% fee, that Valve is keeping, as some cost they have to pay. Any other platform faces a "chicken and egg" style uphill battle against these effects, even if they charge a substantially lower fee.
> Your comments are false due to your total ignorance of reality, and your malicious lying
Rather than hurling insults at me consider the simple question: If Steam was so fairly priced, wasn't charging excessive fees, how can it be that they have an extremely high profit margin? Realistically, that can only be because Valve's revenue from Steam vastly exceeds the costs of running and maintaining it.
I still prefer steam even if its more expensive than other marketplaces. They provide real value over just distribution, like their return policy.
This doesn’t mean they’re viable investments.
I could see an argument that there's an issue with closed ecosystems where value of an item can be changed after someone has obtained it due to control by a centralized provider, but that's completely different concern to the idea of gambling being harmful.
The loot box issue is in part how easy it is to take this stuff to excess. My 8 year old niece racked up ~1,500$ worth of charges in a game when AT&T messed up permissions after a cellphone upgrade. It’s shockingly easy for people to blow arbitrary money on this stuff as the industry is optimized to be predatory as whales make up the bulk of profits.
So I suspect physical stores being really skeptical if an 8 year old showed up to buy a grand of Pokémon cards likely tampered the backlash.
I don't even like it when targeted at adults, but we allow adults to do far worse when it comes to gambling. A lot of our hollow economies depend on it. But you really have to be a moral sewer to pay your rent from kids hoping to open the right bag to hopefully energize their often very narrow, often very autistic social lives. At best you're a carnie.
So there's one data point, take it as you will.
Its still not "cashing out", but I'm sure some made some decent money. I would assume you could sell game keys to those less-than-reputable sites as well? Dunno
Agreed overall though, these are just extensions of "happening off-market"
I don't think they tried very hard to shut them down, they could be doing a lot more.
Edit: based on what I recall from this Coffeezilla video (https://youtu.be/13eiDhuvM6Y?si=GJ_kXOJyXFTogy40&t=476)
I thought it was impossible to trade off platform? All item trades happen within Steam, they have an API to facilitate it and everything.
This is a business. They invented the game. They host it. How are they rotten for wanting to make money from it?
These aren't real objects. They are entry in a Valve database. I can't understand why people get emotionally, much less financially, invested in it.
Control, as in, tomorrow Valve might decide that some of those items are “unusable” in their game which would presumably also crash their value.
A timely lesson!
All the change valve did was make 5 rare items to give a chance/give a extremely rare item
Earlier, that wasn't the case and were locked behind only lootboxes with extremly rare chances i guess.
So this mechanic was already there from 1000 uncommon -> 10 common -> 1(mythic?) -> rare but now it spread to even extremely rare.
The price drop happened because the extremely rare aren't as rare because now it increased the supply as more people created their rares into extremely rares and sold it on the market and more supply, less price, thus the price wipe out and the loss.
Also skins are just cosmetics, they have no in game advantage
I just searched and you get some skin when you level up but the point I am trying to tell you is that if someone actually plays the game for a long time, they get involved in its community and naturally people would flex their skin etc and they would want to get skins to feel cool as well
So its more like people playing -> wants skin / creates money. Instead of wanting money -> people playing games
But maybe someone could be playing/grinding for the skins but I genuinely don't think this is why steam did it.
Steam did it to show the regulatory power they have in game that they can wipe billions. They are creating their in game store which takes prices from online marketplace so they might tighten the regulations on it in such a way that instead of going to random websites or other parties, steam / valve will try to instead be the middleman and try to capture even more %'s of the trade
Another neat point is that if someone wants a skin in the community, they basically got cheaper now 30-40% so it becomes more affordable imo for the people playing but still
I think valve wouldn't have predicted the losses to be of billions of dollar in terms of wipeout since they had mentioned it as a small change and it wasn't even their twitter update note iirc
I think that a lot of people especially chinese people invested into it and it was a bubble in formation and then people got panicked after this news and the panic made other people panic and thus the insane billions of $ of losses.
I recommend atrioc's/ Big A video on this topic. https://www.youtube.com/watch?v=fCnQsvdVQ1o
Valve let that fester for years. Coffeezilla did a multi-part series on the subject late 2024.
The legal aspect seems the likely angle, valve either heard rumblings or got approached by a state actor and decided to finally cut the shit.
Vegas begs to differ.
The trading/gambling websites sponsor a lot of CS content.
https://siege.gg/news/several-eu-countries-have-introduced-s...
They kinda chose that ... a long time ago.
Maybe they changed their mind.
What was wrong with that? Doesn’t gaben have enough money for his super yachts and sword collections?
Steam is still a business, but of all the gaming industry, Gaben is one of the highlights, steam try hard to be extremely pro consumer. Refunds with no questions asked if you've played less than 2 hours of the game, requiring publisher and developers to explicitly state the AI generated content thats in the game to name just 2.
Weaker than standard physical store consumer protections (no playtime restriction on returns, obviously), and (much) weaker than GOGs refund: 1 month after purchase, no playtime restriction.
I believe they explicitly called out the equivalent for physical stores and european consumer protection in general when they announced the policy and lack of restrictions. Which is an indirect call out at Steam, which hasn't cared in the slightest and continues to have a worse policy.
This is probably a US vs Europe difference in consumer protections though.
Battlefield 6 won't run on your PC unless it has SecureBoot enabled. It's not included in "minimum specifications."
Depends on the jurisdiction. In Germany you have no right to returns on things bought in a physical store.
Huh, we have different laws and physical stores. Here, no store will take your game back if you opened the box. Maybe that changed, but in the past any game opened couldn't be returned because you could have either copied the disk, or copied to key and activated it.
GOG gets away with their policy because only people who believe in GOG ideallogy go there, and they won't refund a good game. If steam did that, abuse would skyrocket.
And in my country, unless explicitly stated otherwise, most physical goods can't be returned if they are used.
It’s maybe the only really “good” actor in that industry left so I try to support them as much as possible
The general market is so distorted that being seen as anti-large corporate behaviours on some policies is seen as enough to be considered pro-consumer.
I thought we had parents for you know, parenting. It shouldn't fall into a company to manage what a kid is doing when the product is not for kids.
I once had a glimpse behind the scenes of the online sports gambling industry (only for a few months—turns out that was my limit of how utterly disgusting an industry I could participate in and still, literally, sleep at night!) and it answered a question for me.
The question was: “How did professional gaming get so incredibly big so very fast?” Its quick rise seemed to me to have started well before the broad normalization and rise of gaming in mainstream pop culture, so had always seemed to me like the cart coming before the horse, and I’d never been able to figure out how or why it’d happened that way.
The answer was gambling. Professional video gaming is all but completely a gambling industry. That’s where the money and promotion came from. Sponsorships, sure, but that’s secondary and would drop off to a large degree without the boost from gambling. And I mean gambling on the matches, not just sponsorship by gambling sites. It’s a betting industry.
(Online gambling’s also all wrapped up in right wing political money and funding right wing media[!] in, at least, the US, was another thing I learned that I hadn’t expected)
I worked in online gambling for about 10 years in the UK. I found how charities and local/national government worked far worse and I was far more frustrated with their attitudes.
e.g. I found an SQL Injection vulnerability with dynamic SQL in a large UK charity (I won't say which one). I reported this to my boss. He kinda just shrugged his shoulders. Similar attitudes were present in local government. The gambling industry was the complete opposite and took security very seriously.
What bothered me the most about charities and government was that on the outside they were giving the impression of having a virtuous purpose. Whereas the gambling sites didn't, it was simply "Try to win some cash".
As a former addict (alcohol), I don't have much sympathy for people that blame the companies for the problems of addicts. The problem ultimately lies with the individual. I was the one that choose to drink. The brewary, the bar, or the off-license never forced the drink down my throat. People choose to go to the casino, in the same way they choose to go to the bar.
> The question was: “How did professional gaming get so incredibly big so very fast?” Its quick rise seemed to me to have started well before the broad normalization and rise of gaming in mainstream pop culture, so had always seemed to me like the cart coming before the horse, and I’d never been able to figure out how or why it’d happened that way.
Many of the classic videos games were made to relieve you of change in Arcades. Nearby to where I live there are still classic seaside arcade. They still have machines similar to Sega Rally and Time Crisis there. Video gaming and quasi-gambling have been intertwined since the birth of the industry.
> The answer was gambling. Professional video gaming is all but completely a gambling industry. That’s where the money and promotion came from. Sponsorships, sure, but that’s secondary and would drop off to a large degree without the boost from gambling. And I mean gambling on the matches, not just sponsorship by gambling sites. It’s a betting industry.
This is all professional sports (even going back to long ago as the Roman Empire). There is nothing special about professional video gaming.
The industry saw that people were interested in watching matches between highly skilled people. Any form of entertainment/news/sports is bankrolled by advertising and/or gambling.
Many of these large events came out of more grass roots events like large lan parties. These were pretty big in the late 90s to early 2000s.
> (Online gambling’s also all wrapped up in right wing political money and funding right wing media[!] in, at least, the US, was another thing I learned that I hadn’t expected)
Gambling tends to attract the more profit orientated which roughly aligns with what is considered "right wing" (at least in the US). I found the industry to be pretty apolitical as a whole. Many of the C-suite and above seemed to be actually relatively left-wing at least in some view points. It was odd when the top executives were far at least on somethings far more to the left than I was.
You know this is meaningless.
> Are you expecting Valve to add ages verification based on ID like the new UK law to block all the kids?
An alternative would be not to run a gambling business. If that's too much to ask, then yeah, they probably should be required to exclude children.
> I thought we had parents for you know, parenting. It shouldn't fall into a company to manage what a kid is doing when the product is not for kids.
This implies that casinos (and liquor stores, and tobacconists, and so on) should be allowed to serve children.
I'm willing to bet a lot of the young people struggling with gambing addictions started with loot boxes like the ones valve make a ton of money on.
You can’t make a non-toxic free2play game.
People need to buy from stores like GoG and stop supporting f2p games at all.
Of course that’s never going to happen; an entire generation was raised on f2p
> Now, thanks to a recent update from Valve, the latter is in a downward spiral, having lost 25% of its value — or $1.75 billion — overnight
The fact that they made this change to make these items far easier to simply earn should say a lot about the ethos of the company though.
Yes the parents have a responsibility to look after their kids. But that doesn’t give Valve a free pass, particularly when they used dark patterns to appeal to children.
How? Individual parents can't fight off predatory corporations entrenched in mainstream culture going after their kids. They need to make a go at Valve.
edit: Rereading, I guess that was kinda the point you were making?
But - parents are responsible too, more than anybody else. Gaming is generally bad for kids, physically and mentally. Come on, everybody who cares knows that for past 2 decades. Screens generally fuck up kids properly, the younger and more interactive the worse the result. Kids need tons of physical fun and tons of continuous social interaction in larger groups, doesnt matter what some echo chambers claim, 'digital skills' are not something your kid can anyhow miss on.
Its supremely easier to fuck off kids, leave me alone, my adult life is oh so hard already, here play some more, give me some break. Adults being glued to phones hard themselves. Results are what they are. Its called universally bad parenting, by psychologists and various experts for a reason. No sympathies for parents there, but I feel sorry for all those kids whose potential is squished into various anxieties and abysmal social behavior.
Talking all this and much more as parent of 2 small ones, luckily for them environment we are in is firmly agreeing with all above.
Yes, it says that they want a bigger cut of the sales when those items are sold. Not sad this hits the trading sites as that will also likely mean fewer will get scammed as they will stay in valves market, but saying valve is doing this for the users is crap, they do it for the profits, and maybe to stay under the radar of additional lawsuits regarding gambling laws around the world.
Them letting it happen for literal decades while being highly aware of what they're doing says more about the ethos than this, in the grand scheme, tiny move. Don't get me wrong, me as a person who does not participate in any kind of this gray-area gambling has basically a lot of net positives from Steam and Valve. But this doesn't make them a pro-consumer company.
They're still greedy capitalists, and it shows in many different perspectives. They may be "better" to consumers than the average, but still.
They made it available to everyone because they were going to lose that case everywhere but the USA (where you have no rights)
Before that, Valve did not allow any refunds.
I like Valve for being slightly not outright evil and providing a service that is not trying to scam me, but that's such a low bar.
I wonder how Valve will handle this once the game is ready to be released - will they just blanket ban the mods? (seems likely, and the community is even probably ready for it so will not be too pissed off at the move.) Or will their monetization route be something else this time, not "hats" like usual? (I'm hoping so, although I can't imagine what else it could be without being pay2win.)
'sv_pure' exists and says no for the official servers, sorry
Community servers are a thing, so is a worse experience. The well-maintained community days passed. We wanted curation and we got it: matchmaking and even our customization/spending.
It is also not impressive to others, not a status symbol, and that's actually the purpose of skins in the modern day. No one grinds 1000hrs of warframe for a skin just because they think it looks cool, they think it makes THEM look cool. They want people to be impressed that they had $2000 to spend on a knife, not that the knife skin was neat. The skin is an auxiliary component to the task.
Looking back to ~2012/2013 and its seeming to be clear now that the introduction of weapon crates, the steam marketplace, and all of the other MTX in all of their(proprietary) competitve games may have been a good indication that these would be the last games Valve would develop in-house.
To be fair though and just to give a counter-example, the "clout chasers" with the $1000 knife skins is essentially the same as the bragging rights of a 4/5/6 digit steamID during 1.6 and CS:Source. Although flexing SteamID length was something I only really saw in the competitive scene and of course had a much smaller(unofficial) market.
Oh well, RIP Steam games, long live Steam software(their platform/Proton, etc) and hardware...minus the steam controller.
Where do people get this impression? It's not trivial to build user comments on a web page let alone a proper chat app but people think it's easy to share game assets for some reason.
This undersells how bad it was to play a game with people who can see through walls and hear your footsteps from a mile away. No skin is worth that.
I’d say 90% of ours have it enabled.
They used to ban accounts but I don’t think they have (on community servers) since it went F2P.
[0] https://www.youtube.com/watch?v=9Hv-46CCd9I
Most lootbox gambling apps are targeted towards the latter use.
Isn't most of this trading done on 3rd party services though? I mean sure, Valve is indirectly responsible for allowing trading of rewards like this, but they don't control the market values themselves and only profit indirectly from it.
Which does make me wonder about their other popular collectible game, TF2 - they don't update it, like, ever, but it's still popular and they can potentially make huge amounts of money from it. But they can from the Half-Life franchise too.
TL;DR I don't really understand Valve, but it doesn't really matter because they're swimming in money regardless.
If/when the huge Satoshi bitcoin stash gets traded in, we'll see similar outcomes there too.
Plenty of market manipulation and rug pulls happening on the regular stock market as well
I'd say that's true: if you have one skin, there's virtually zero production cost to making more copies of said skin.
It's not that different for many things in the real world, I suppose (eg: if you sell way above cost, then your cost is also arguably zero), but I'd say it's magnified in the digital world (or even with NFTs).
The cards were literally indistinguishable even with the loupe. I quit buying cards after that. It’s a suckers game if I can’t tell the difference between a $50 and a $3 card even when I know one is fake. Sure enough, a few months later the prices have absolutely cratered for the cards.
The only ones they couldn’t copy exactly seemed to be the “enchanted” cards, which sell for hundreds or thousands of dollars.
Edit: minus some race conditions of people changing passwords/moving/emptying wallets.
1. It's easier to extract funds from abandoned wallets without being noticed
2. There will be a transition to wallets with post-quantum cryptography
3. The abandoned wallets won't be able to make that conversion because these need new wallets/keys
I guess some people call early P2PK (pay to public key) addresses "abandoned", but we simply don't know if somebody still controls them.
In a scenario where you have a powerful enough quantum computer and are able to break the encryption you can access any wallet (I.e. the system would be done, and the value would be zero).
But on the other hand there are people looking at those abandoned wallets and if money start to flow out from them someone will ask questions.
A new wallet cert would be created that uses more bits. Enough that a brute force even with a quantum CPU would take too long. Then you transfer the funds to the new wallet. Abandoned wallets might be claimed during this transition but overall the deflationary trend of btc won't really be effected long term.
The point is that, for as long as items can be transferred in game, they are always convertible to cash in the real world. Inserting artificial friction inside the game to increase scarcity, such as limiting convertibility of items, will drive those trades away from the game economy and into the third party ecosystem where the dollar rules supreme as the super-convertible means of exchange. So you have an induced scarcity that in effect drives third party profits.
By increasing in-game convertibility, the trades are directed to other in game assets that are a just a proxy for loot boxes, i.e money in Valve's accounts. So prices crashing in the third party market signal that players have a cheaper and more direct route to acquire them - give the money to Valve - which also generates the supply of new rare items as those loot boxes are opened.
It's a smart economic move.
Buy that doesn't mean the prices will stay low, since they can always control the overall scarcity, or add new, rarer and more exclusive items. The total amount of money they extract from "kids" is ultimately linked to their ability and willingness to pay.
They have been threatened numerous times with lawsuits over the gambling aspects of the IAP. This moves completely de-risks that. As you said, it's not going to affect profits very directly. It will however make the speculative market collapse, and keep players engaged within the game's economy.
CS:1.6 (which is what I still would want to play) is history unless I clasp my nose with my toes and then hang upside down from a ceiling fan and request someone to switch it on and then pray it works and keeps working. It doesn't; it crashes with flamboyance. There are some browser options, but that's another story altogether, and that too if I can find enough players there, let alone with good pings.
I finally realised that the only computer game I ever loved playing and played really a lot— albeit with gaps worth years in between after college— is just gone for me, and there's no coming back.
I guess now I am too old for all this, and maybe that's the point. Possibly someone who is on the older side will not buy these skins and whatnot; the company's focus is rightly not on us at all.
(PS. I always felt distracted with those skins; even in those younger and much younger days)
The n150 mini PC suggestion is because they really punch above their weight for being so cheap if you otherwise don't have usable hardware and want to play older/less demanding games anyway. They also make for extremely snappy workstations (on Linux. They come with Windows 11 which is super laggy). And they're like 2 inches * 2 inches * 1 inch, so tiny. If you're doing anything other than AI or something like video editing, they're a fantastic value.
It shall not be a marketplace for gambling and cheaters.
Not it, Valve. Valve designed and implemented the system. Gabe Newell, founder and own of Valve, is one of the people responsible for introducing gambling to children. Children who grow up and develop a gambling addiction.
Just because they made some good things doesn't mean we can't call them out on literally their biggest, ongoing, evil.
Pathetic all around, imagine I am giving you a minus I cant give, and expecting better from you next time.
It’s fine to have some cosmetics, but the economy Valve had created brought so much toxicity to the game.
If you don't take responsibilty for your community, who are you expecting to do it for you?
But expecting them to individually fight billion dollar corporations that deliberately court children with damaging addictive services is asking too much.
Then we’re told this is all our fault. Meanwhile schools send home devices that don’t lock or at least disable Web access at night, and I can’t admin those to fix that dumbfuck oversight. To point out just one of many ways we get undermined. This is a whole bunch of stress and work that simply did not used to exist for parents and I absolutely get why a lot just stop trying.
Meanwhile you have users here that will tell you that refusing to give their kids smartphone or even any video game is not that hard, but it seems needsly restrictive.
It's literally "The first hit is free". The sketchy gambling sites spot you bonus skins and stuff for the same reason. It doesn't matter, they don't actually have to ever pay out, so they can just give you fake money to get you addicted.
I contend that games like Team Fortress 2 were also ruined by the F2P loot box crap. It's not that they took anything away, but it attracted a certain kind of customer that is very unappealing to the prior base. The "hats" made me walk away from TF2. No one on average seemed serious about the core gameplay anymore. Taking away that up front cost to play cheapened the experience for the existing paying customers. It's like going from shopping at Whole Foods to Walmart.
Robinhood is your go-to application if you want to gamble legally and efficiently without (as much) fear of a single actor ruining your day.
Most of us were able to earn money to buy a pizza or some additional snack betting on teams, or trading keys. Some exceptionaly lucky or with natural born trading skills were earning serious money — from quater to multiple salaries of an adult.
Maybe because casino-tourism in Belarus made people here slightly less prone to gambling, or maybe parents were not used to gift their children micro-transactions — e-sports betting, gambling and trading was financed mostly via in-game drops, returns from these bets and trades, and of course, sometimes, pocket money (which, on average were like 3$ per week).
That said, in modern times where micro-transactions are so common that you are ok with giving your kid V-bucks as birthday gift, I want say that anti child gambling narrative is a good thing.
2) At that time, and afaik it is true even today — you could use skins as a virtual currency to pay for a real things. It was proto-cryptocurrency/NFT in terms of being KYC and AML free.
This is really big market. There are aritcles on NYT about real life terrorists buying real guns for skins.
But without US-centric sensationalism, I beleive you can still pay for VPN or ChatGPT in very sanctioned Russia in CS skins. This can be also done with crypto (and mostly done now), but crypto has learning curve and you already playing CS.
I remember when Counterstrike 1.3 came out and everybody at my school were talking about it and playing it. We would line up at computer labs before lunch started, pay a toonie and entire room would crackle with in-game radio comms, AK47 and HE going off with a room full of people side by side excitedly shouting for an hour until lunch was over.
When classes finished we would head back to the lab again and we would play endless round of de_dust 1 & 2, de_rats, fy_iceworld and the occasional as_oilrig and the rush of being the VIP and experiencing my first headshot.
Sometimes the admin running the labs would add fun mods like no gravity and weird stuff....
It was such a memorable and social fun time and it runs in complete contrast to the everything-gambling culture that has taken foothold....
Unless I'm missing something, this is zero sum -- so it follows that a bunch of people mostly lost money (perhaps also during their childhoods)
How many whales are buying an in-game cosmetic for $20K for their own use?
How much of this is day-trading? How much is investing? How much is fabricated by trading platforms? How much is money laundering? How much is a criminal payments channel?
Sounds like it is working as it should. Those with oversight fixing supply in response to price signals when the private system is unable to.
Wouldn’t it be nice if those in charge of the economy in the real world made the same sort of intervention.
Doesn’t really tie in to actual markets involving physical item.
- A designer brand has admitted to destroying its own products. Coach confirmed that it purposely ripped up bags that were returned to its stores, even if the bags were still in good condition. https://www.bbc.co.uk/newsround/58846711
Monopolies and cartels are also well known for creating fake scarcity. Fake scarcity is bad for the economy and for consumers, only a few profit from fake scarcity at the cost of everybody else.
The counterstrike skins don't represent such real life physical resources.
USD is human created artificial item, as real as human believe that skins in video games worth something
"The counterstrike skins don't represent such real life physical resources."
it represend steam wallet currency
Or shares in Nvidia.
This had catastrophic impact on people hoarding 500$ expecting their exchange value to remain at the elevated levels.
Government may indeed issue more currency, and does do so every day, but it is in exchange for something the private sector has that it wants for the public service. That isn’t a problem as tax is a percentage and operates as a geometric series - meaning that whatever government issues it gets back exactly the same - unless somebody along the way saves it.
There has to be something available to buy in a currency for it to be issued. As we see in the game.
They're are plenty of things in very short supply, bit no one wants them.
It seems like NFT before NFT.
making a butterfly knife for Valve isn't hard (in the past Steam Customer Service duplicated items lost in scams). It's hard for the players because they have to "gamble" for it through paying keys to open cases.
Similarly making USD in a bank account isn't technically hard, but it's fucking hard to get a bank to tweak some numbers in your favour.
CSGO knifes actually currency run by shadow banks providing RMB <-> USD convertion.
Google for "挂刀"
> "Selling Knives" (挂刀) refers to the technique of buying in-game items from 3rd-party (Chinese) trading sites like NetEase BUFF, C5, IGXE, and UUYP, and then selling them on the Steam Market to obtain a discounted Steam Wallet balance by capitalizing on price differences.
I'm surprised the price difference did not disappear if people make that trade.
Source https://github.com/EricZhu-42/SteamTradingSiteTracker/wiki
You can buy games with Steam Wallet
You can also buy/sell in-game items with Steam Wallet
Now only if someone invents a commodity with a stable price. Hmm what could that be?
Selling 10 of something for $1000 instead of 1000 of something for $10 is not new.
Also builds brand value.
Nothing about the painting itself would have changed, but its market value depends very much on whether Van Gogh painted it.
I didn't get far with the project, was harder than I thought as the proxys you can rent were blocked at least the few I tried at the time.
The problem was the rate of checking it was I can't remember hundreds of times a second to provide a "real time" ticker.
E.g. in popular MMOs "mobs" have loot tables, usually dropping worthless stuff on kill, but with a 0.0001% chance of "awsome". You can kill these 5/sec when geared up. Is this "gambling"?
You can also buy "gold" for real dollars to buy those items of the "auction house" from people that have grinded the farm.
Guy I used to play Diablo + Destiny with mentioned once that he had just sold a knife in CS for 4k, and was going to buy his first (used) car with it.
We thought he was joking.
So this article is very funny to me too.
edit: I did try to warn you all: https://news.ycombinator.com/item?id=44943123
https://www.youtube.com/watch?v=eMmNy11Mn7g [36m]
First of all having 3 billions less in economy means we are 3 billions closer to recession. Worth keeping in mind that games are not essential.
Second thing is trust, without it whole steam can implode. Whole business is based on infinite purchases.
Third thing is people may do harm to themselves and this usually brings eye of Sauron.
As for it collapsing Steam; not a chance. They didn't take away anybody's games, and that's what Steam is for to the overwhelmingly majority of users. The gambling addicts are a small minority and generally an annoyance to everybody else.
Long Answer: It is a bit of a perfect storm, and you'll get a lot of mixed answers to this, however these are the reasons I see roughly in order of their impact.
1. Skins are the vehicle for gambling (you bet them instead of $). The loot boxes definitely get people hooked, but the skin gambling arena is a whole different beast.
2. Valve, whether by luck or skill, created a perfect system of scarcity. I can elaborate a lot on how this is done. The rarity of the skins is one thing, but the float system giving each drop a mostly unique appearance causes a 2nd tier of scarcity that adds a lot of value. They hired a bigwig Greek economist to develop this system.
3. The market has been stable-ish for long enough that some people view it as a legitimate safe investment. I have heard this is very popular in China, but I really don't know how this behavior is spread out globally. I have a friend with over $100k in the market (well, he did before this).
4. Almost everyone I know who plays seriously has at least invested a small amount in the game. I play with roughly the same 8 people, and 7 of us all spent $1-2k on the game, with inventories ranging from $1-5k.
https://web.archive.org/web/20150127153425/http://blogs.valv...
But clearly it's happening, so I'd like to understand better the venn diagram of people who have $20k completely disposable and people who are so highly motivated by their appearance in a video game. My assumptions are obviously wrong.
But the skins are also used as a money substitute for gambling and as an intermediate item to exchange money between currencies. The skins "just happened" to be a stable enough store of value to create secondary markets.
Skins have their place when they're modestly priced, as they also have quite a modest impact. But the whole gambling, artificial restrictions and trading is quite suspicious indeed.
> Now, that Butterfly Knife mentioned above? It's going for around $12,000, as people are essentially dumping their stock, with 15 sold over the past 16 hours at the time of this writing.
Why on earth would anyone think an item in a video game is a good store of real-world value? Who are the people buying these items right now for $12k? How the heck did we get here?
Valve, as a digital feudalist, generates funds, practically for free, from both transactions of items and the lootboxes. It operates the markets on which digital goods are traded, taxes all sales occurring on these platforms.
After they already went and built the torment nexus (and were paid handsomely for it)
It's not so much a depreciation of knife textures, as a distribution of this value down the chain of item rarities.
I wont google him, but take at your word an assurance that he can be trusted with the highest levels of economic decision making.
We deserve this timeline.
Genuine question, been at least 20 years since I was that age.
it literally not, not until latest update
its even better performing than stocks, thats why china invested millions into this
1. Valve wants to avoid regulatory scrutiny over loot boxes
2. Valve wants to limit prices; the Steam marketplace only allows items up to 2500 usd to be traded. By averaging out the item prices (knives drop, covert-class increases) they are able to indirectly limit the usefulness and harmful side effects (money laundering, decentralized liquidity) of 3rd party trading sites
"The GOAT of expensive skins in CS2 is the Karambit Case Hardened in the "Blue Gem" pattern. While the original is costly, one Factory-New variant with pattern 387 reached a staggering $1.5 million! The rarity comes down to its blue pattern, which is incredibly rare on a Karambit."
The game itself only distinguishes between those ranges of values, but it's possible to query the exact number via an API so I think traders will even price that in (e.g. Factory New 0.02 is worth more than Factory New 0.06).
Tomorrow Valve could decide that the value of crates is too high so they drop the price of crates to a penny a piece. What would that do to this 3rd party market? Poof.
One example I checked was about 0.20 going to Valve on each sold on market. And they sold 280 thousand of them in last 24 hours. So 56 thousand in single day by minimal effort.
> Following Valve's Oct. 22 update to Counter-Strike, the second-highest-tier, Covert (Red), can now be traded up and turned into Knives and Gloves. Essentially, this means that a previously extremely rare and highly sought-after cosmetic is going to be much more obtainable for those who increasingly want it, reducing the value of Knives and Gloves on the open marketplace.
The only difference with the designer bag is that there is scarcity, but that's about it.
The value of money used to be based on gold. Gold has very limited practical value. It actually kind of sucks as a metal because it's not that hard compared to e.g. iron. The main value proposition is that it's pretty and shiny. But people that buy gold don't tend to even look at it. They just store it in a vault. Or worse, they get a digital receipt that proves they own the gold without ever seeing or handling it. The main value of that is that, if you wanted, you could make pretty and shiny things out of the gold bars. And because those pretty and shiny things are valuable, gold is valuable. And therefore people invest in gold. Not to make those things but to be able to sell it to others that might do those things. Of course the vast majority of people buying and selling gold has zero interest in doing that. Most gold ever mined is locked in a vault in bar form and will never be used for anything else than as an intrinsic token of value.
There are a lot of things that have no value beyond subjective esthetics and the group thinking around that. My home country the Netherlands produced a lot of fancy paintings in the seventeenth century. Those are worth a lot now. They are extremely nice according to some. People visit museums to go see them. They are worth tens/hundreds of millions in some cases.
Objectively, most people that visit museums wouldn't be able to tell apart the original from a good replica. And reproducing these things with high fidelity digitally isn't all that hard either. You can find high quality scans of almost any painting for free on the internet. And you would get most of the appreciation/emotion looking at those as you would get by looking at the originals. Of course, most people aren't that into this stuff in any case. But we appreciate these things because other people tell us they are valuable and we take their word for it. The original paintings keep their value mainly because such people keep reassuring us how rare and amazing these things are. That tends to get embarrassing/awkward with forgeries in museums where experts literally have failed to tell the difference.
The value of things whether digital or real is based on social mechanisms for appreciating things. Some things simply are valuable because people agree for whatever irrational reasons that they have value. And then some people buy these things at the market rate because they enjoy having them. Whether that's original art on the wall, some rare sneakers, or a cool skin for a game character that you engage with for many hours while playing the game. The dynamic between the willingness of people to separate with their cash and scarcity is what creates the value.
NFTs are weird mainly because they are digital receipts for something (anything) that has value. They are no different than a paper certificate of authenticity for a painting. It all boils down to the trust people have in the impressive looking stamps/signatures on the paper, or the blockchain shenanigans used to ensure authenticity for the NFT. Of course a lot of NFTs are silly. But in game worlds, ownership of skin is kind of limited as you can't really resell them easily or prove authenticity. Which is something that NFTs addresses. Which is why NFTs became popular in games.
The value of game skins is as irrational as second hand sneakers are or the appreciation for shiny metals. Or gems. Or paintings. But as long as people buy those, they have value.
My wife will turn down a made in Japan Shinki cordovan horsehide bag because it doesn’t say “Gucci, LV, Chanel, Hermes, Prada” on it - and out of those really only Hermes and Chanel these days get the “wows” anymore.
“Vintage” LV commends even more value than regular LV because they used gold plating back in the 90s instead of brass for the metal parts of the bag. At 10,000$, I expect solid gold.
Meanwhile Japan will sell me a literally best leather in the world, YKK zipper bag for 300-800USD with tariff included.
There's a what? I guess once you've maxed out wasted hours of time playing it, you start wasting money too?
Less absurd than NFTs though I guess
What would you dictate that humans do instead to not be wasteful with their time? Comment on threads about games?
Finally, Steam pays taxes in the US, so the government is already "getting a cut." Games of chance are not moral. Unregulated games of chance are flatly evil.
Your brain after 200+ years of american propaganda... it's innate in the sense that you're bathed in it from birth through movies and games, and that a good chunk of your economy relies on producing weapons and using them.
I'm reminded of that scene in Michael Moore's Bowling for Columbine where he's asking a concerned adult where the violence comes from, and the concerned adult looks sad and confused and says he doesn't know, even though he's standing in front of a nuclear-tipped missile being assembled at the local nuclear-tipped missile plant.
Financialisation is indirect personal violence instead of physical violence. The US doesn't have a problem with that at any scale, as long as the right kinds of people are doing it.
For example, if someone is getting too high, it’s nothing to pair that person with a known deserter for 1-3 games to drastically slow their progress.
Not to say that all video games are unsubstantive. But the substance in exploring virtual world comes from its uniqueness, not playing de_dust2 for 1000 hours. No other form of entertainment or art is analogous to video games in terms of the maximum time you can spend on it with totally depreciating returns.
And soccer only has 1 map.
Oh that is gold, that's a special kind of "far gone" - to measure real world things by how many "maps" they have
Different benefits and downsides.
Of course, a lot of guys are suckered into sports-related gambling these days too.
Don't be so close-minded; playing games is not different from any other activity.
Playing football or lacrosse is more "real" than working a desk job. For thousands of years, humans had to hunt and make tools and relied on their wits and strength to survive. Survival in the modern day is mostly a question of obedience.
I think the purpose of exploring virtual worlds like quake or counter-strike or something should not be to escape the real world but rather to experience a new kind of physicality. The purpose of playing games should be to engage in a deeper world which is more "real" than the tame one we are ordinarily subjected to.
It's why I am not opposed to video games. I opposed to overplaying video games because you ruin them, they become mundane and predictable.
One may say you make social bonds playing them, but that stands true for video game as well. Speaking for myself, I definitely spent more than 1000 hours on summoner's rift; 15 years later me and my league friends still playing LOL together and chat about all kind of things on a daily basis.
its as real as people buy billions using made up money (BTC)
That still feels like gambling, but rather than gambling on what the current case contains you're gambling on the second one might contain.
It's "technically" just, after all.
Edit: I said 'UK' where I should have said 'England and Wales'. Scotland and Northern Ireland have their own legal systems, although I believe both have Adversarial systems they are different in some ways. The US system could, however, be seen as a continuation of the English system.
eats baguette
That said i think it's still better to just ban it.
I still enjoy them though, but I enjoy gambling responsibly!
> https://bhmvending.com/collections/coin-pushers
I believe for some regions, Valve just shows you what's in the "lootbox" (case, whatever), and you have to pay to acquire it before you're shown the next one.
This isn't to say I don't fully agree that this kind of thing is probably predatory and probably unhealthy. But I find most discourse on the topic starts and ends at the shoreline with a version of "there ought to be a law..."
I’d maybe be OK with some kind of well-thought-through thing that still allowed friendly poker matches or sports brackets between people who actually know each other, but got the big money out of it. Maybe just ban corporations from having anything to do with it so limited-liability and serious investment is taken off the table? Something along those lines? But it’s also bad enough that I’d definitely vote for an outright ban if it came up. Complete switch-around for me on this topic, from where I was on it for years.
I don't care very much if people gamble with each other, and expect $1 back for every $1 they put in.* But casino games and lootboxes are specifically designed for consistent losses to the house. It's simply another tax, but on the addicted, desperate, and/or innumerate. The weakest people at their weakest moments; and if we're not protecting them, the government has no purpose.
* I actually think that it is good for people who have the same wealth levels to gamble with each other, as long as the outcomes are largely random. The problem is with vigs, and with pots that get too large to cover against a house that can endlessly extend itself.
Enforce 18+ age rating and mandate platform parental controls. If the parents decide to let their child pay for adult content freely that's unfortunate and on them.
Going stricter isn't effective, ID check will become tools for whatever ulterior motives they have.
The first thing I did when I got a debit card was buy the 18 rated GTA Vice City!
There's zero reason for a child to carry cash for no purpose. At any rate their lives are so structured usually that this notion that they're going to run to some store to convert it to prepaid cards is far-fetched to begin with.
I see a failure of parenting that some don't want to give credence. I'm not sure why.
None of this makes sense. Some parents aren't doing their jobs.
its not gambling when you "can't" withdraw the money
Not if your dad is the one buying you the cards.
I personally often go to the huge bins of "shit tier" cards that my local game stores have, because I like to have some pretty cards (I often use them as bookmarks), but I don't play the game itself, so the actual mechanical value of the cards is meaningless to me
EDIT: I feel the same way about things like Warhammer. I don't know about other games, but in Warhammer at least there is a limit on how powerful an overall army can be, so sure it may not look as visually good, but just having tokens that say "squad of soldiers" or "mega death tank of doom" should be perfectly acceptable too
Unless you play Pokemon TCG or MTG competitively at a national/international level, proxy cards are mostly accepted in the community.
More and more people recognise Nintendo and Wizards of the Coast (Hasbro) have money in their eyes in the card games. Pokemon cards are becoming more full-art because that's what sells for crazy markups on third party websites, and MTG are doing crossovers with whoever will sign them a license. They're both playing a risk by moving from old time players (many of whom are now leaving the hobbies) for the sake of some nostalgic "investors".
I just wish I had a local shop with a shitbin. The shops around me just sell packs (when not out of stock) and they're all marked up beyond MSRP. I just want to play the game. I don't care about art, holographic patterns and the like.
On the other hand, whenever people open packs just looking for collectable cards, they flood the market with job lots of regular cards at dirt cheap prices. I managed to get a joblot of 2500+ Pokemon TCG cards for around £20 (lots of duplicates, all regular).
The ticket conversion rate at these establishments is a worse scam than TF2 knife trading was until this update.
Just curious.
- You sometimes win a bit along the way, but eventually you lose everything.
- The jackpot prizes are only there to lure you in, and you never win them. Towards the middle of the shelf are things like £20 notes. We noticed that one of them was getting quite near the edge, and might actually become winnable, but then the following morning its position had been reset to the back of the shelf.
- It's still fun as long as you're just playing with money you don't mind losing, and not expecting to come out ahead.
They even learned something about company scrip, from the tickets that come out of the machines and the ridiculous exchange rate between tickets and the actual rewards at the prize shop.
I asked my son on the way home if he'd put all his Christmas money and savings into the machine if I let him, and the answer was hell no - maybe a pound, but he didn't want to lose all of his money. Valuable lessons all round.
Depending on how old is “old school” for you, every game in an arcade might be fine.
If we’re talking 90’s Chuck E. Cheese, maybe half the games would be potentially interesting to play without a token payout. The others round to “roll the dice,” where there is no payoff other than a gambler’s variable reward.
I think this also covers whether skill is involved. Like for me, beating my buddy at basketball shots is mildly rewarding, but smashing a button at the right time is not very interesting even if it requires a lot of skill.
Other types of partly fake skill games surely should be banned from kids. Like crane games where there is some hidden variable. And well anything in same category.
Some people are opposed to kids gambling (or gambling in general) - an understandable sentiment even if i dont agree.
Some people are skeptical of the gov't and the implications of proper identification on the web (which is required for age verification). Whether you are pro or anti gambling doesn't make or change this skepticism.
I think the HN hive mind is more opposed to the concept of loot boxes in general. We don't need to go much beyond that. It follows that a puddle of industrial waste would cause trouble if it began to flow downstream.
Correction. $0 in value. Skins do not exist and are worth exactly $0. If you spend money on skins, they are worth… $0. It’s all a large scale grift money incinerator where the only winner is Valve.
+ whatever pleasure you derive from it, ig. I can understand loot box addiction, but paying $20,000 for valve character dress up? Not even like a Peter Griffin player model or something, but a slightly different looking knife? Madness
Persp: tf2 enjoyer