TBH the profit margin on this game is probably closer to 100% than 10%, it was a solo-dev game so never much overhead, I think one guy was hired to work on it.
30% off the top for most stores (Valve/Steam, Apple/iPhone, Google/Android, etc), then around 50% taxes between state, local... some fixed expenses and overhead. It's probably well under 20% in the bank after all is said and done. That said, it's still a lot of money.
The highest marginal combined tax rate in the U.S. is 51.8% (37+10.9+3.9, assuming an NYC address).
However, this is business income, not compensation, so it's taxed on a net basis, not a gross basis (even though it may still be included on his personal income tax return). This means his taxable income is the amount left after taking into account the retailer's fees, subcontractor costs, etc.
So, for example, if he made $100 selling games, $30 would go to the store. Assuming no expenses and overhead (since we have no data to come up with those numbers), the remaining $70 would be subject to tax. Assuming he lived in NYC, he would pay up to $36.26 in combined taxes (not taking into account the SALT deduction or the progressive tax rate calculation), for a post-tax net of at least $33.74. Assuming he lived in WA as other commenters note, he would pay up to $25.9 in federal taxes, for a post-tax net of no less than $44.1. (But note: Washington has an excise tax on businesses which is based on gross income...)
Stardew likely qualifies for the reduced store cuts. Steam _lowers_ the percentage for a game when it sells high. Still somewhere between 10 and 25%, though.
Generally, the Steam cut is considered “fair” for Indy devs. The benefits of steam (discoverability, massive audience) generate more sales. My Indy dev friends are not upset about the steam cut at all.
This, however, is one area where eventually Epic Games shines — they take a much lower cut and if they increase in popularity with gamers then steam might be forced to lower their share.
This is basically almost public information: 25% cut on earnings between $10 million and $50 million.
Yet most likely very big share of sales is well below $10 let alone $15 due to sales and regional pricing.
So yeah I doubt numbers anywhere close to those adverised.
> Generally, the Steam cut is considered “fair” for Indy devs. The benefits of steam (discoverability, massive audience) generate more sales. My Indy dev friends are not upset about the steam cut at all.
Steam no longer provide any discoverability on its own unless you either bring your own community ftom outside or spend $10,000-100,000 on marketing to gain wishlists.
If you're small 2-10 people indie gamedev studio and have external funding Valve will earn more from your game than you.
In this case, as a solo dev, it's probably quite justified to be honest. I doubt ConcernedApe would have really been able to continue solo-ing it with this level of success if he also had to maintain distribution channels, sales/returns, marketing, legal stuff on a global scale.
It's probably the big name studios who already have entire departments to do that kind of stuff that feel they're being ripped off.
Actually the more you earn the worse the deal is - he's probably paid about $100 million for what amounts to $100,000s of labor if he paid people to take care of this stuff, and some (low) millions in taxes collected for various jurisdictions. Dude's personally bought Gabe a ship in exchange for some accounting.
When you're talking millions in income it can be that high depending on your state... IIRC, as peer comment mentions, Washington doesn't have state taxes, you still have a nominal rate for Federal at 38% though, and I'm not sure about sales, property or other taxes, which again, likely approach or exceed 50% against total income.
Just checked, seems it's now 37% for the top federal bracket... for what it's worth, I think it's amoral to tax more than half of what someone makes, regardless of how much they make.
Came here to recommend this book. It is fantastic. There are nine other games covered besides Stardew Valley. Some are great, some not so great, but the stories behind each one are excellent.
Not really, what they actually do for most games is basically what Google and Apple do: a token review, then nothing apart from some niceties for players. Then they pocket an immense profit, it came out in one of Epic's cases that Valve net $50 million/year profit per employee.
The only thing for developers they still do better than Google and Apple really is a few promotions throughout the year that target specific genres for released games developers can register for (whereas Google and Apple select the games they promote), and the "Next Fest" 3x a year for unreleased games.
They used to do stuff like "visibility rounds" that would reach 100,000s of people who didn't know about your game - the same feature today targets people who already wishlisted your game, so these days most developers have to put significant effort and money into promoting their Steam page on other channels like tiktok/youtube/reddit.
Well, plus there's the whole version management and packaging and hosting and distributing giant amounts of data.
If you are an indie team that makes a 50GB game and has 50k players, distributing and update management would be a gargantuan task without Steam or something like it. 2.5 petabytes of bandwidth isn't cheap.
Yes what they do is profitable, I'm not saying that it isn't. But paying for what they do is (clearly) still more attractive to developers than rolling their own infrastructure to do the same.
That firehose isn't pointed at everyone, being the newest game on Steam has a very fleeting value and then it's on you to find customers. It used to be that Steam played a much more active role in spreading traffic around games but these days the median game is doing $1,000 - $2,000 in sales which is like 100 - 200 copies sold. It's more and more like Google and Apple where what you get out of it is just a function of how much you spend on customer acquisition, how well you reach social media, and whether you can leverage these to become popular enough to achieve prominence.
Everyone launches on Steam because they are an utterly-entrenched monopoly, all other PC game distribution channels are collectively a very small percent.
The firehose only ever pointed at "everyone" back when Valve was hand-picking every game that got released on Steam. Back then we only saw a few games released every week, and because of that they got that much more attention. But that also meant that most games never got any attention on Steam, since they were never released there.
However, Valve has since removed most barriers to entry and these days Steam sees more than 350 releases every week (nearly 20k in 2025), a number that is constantly growing. Add to the fact that there are already more than 130,000 games on Steam, that every new release has to compete with, and it is no wonder that median sales are low:
The low barrier to entry means that a lot of crappy games being released on Steam, that were never going to sell a lot, and the actually good games have to compete with all the other good games on the platform, that are probably also being sold at a much greater discount than your newly released title
Right, all the games that they think will be successful. Most games won't- it's a power law market.
There's nothing preventing a game dev from selling exclusively on their own site. It's not as though Steam has exclusive access to Windows customers like the App/Play Store do on their platforms. Steam earns its customers and their trust and developers follow.
And the decision to risk years of his life spent on a project that might not pan out. IIRC he was largely supported by his girlfriend during development and he worked in a cinema. That's in contrast to a job at a studio where you get a salary for your time whether it succeeds or not.
