Steam reigns supreme in the distribution of video games on PC. The platform has nearly 40 million daily users and hosts tens of thousands of games. These impressive figures mask an even more surprising reality: This entire system runs on a smaller team than the one that developed Baldur’s Gate 3.
Data revealed in anti-competitive practices lawsuit shows that Valve generates more revenue per employee than Facebook, Apple, Netflix, Google, Microsoft and Amazon combined. Facebook, although second in the ranking, shows $780,400 per employee, or $89 per hour. By comparison, Amazon, with its 1.5 million employees, only makes $15,892 per person.
The secret of formidable efficiency
This extraordinary performance is based on several pillars. First, Valve has built a quasi-automated system. Steam works like a well-oiled machine where developers can directly publish their games with ease. Users have powerful community tools to moderate content and support each other. This approach significantly reduces the need for support and moderation staff.
The 30% commission taken by Steam on each sale also constitutes a major lever. This practice, although contested in the Wolfire Games lawsuit, allows Valve to generate substantial revenue without increasing its operational costs. Each new game sold on the platform contributes to revenue without requiring significant investment in human resources.
An atypical structure that redefines standards
Valve stands out for its unique company culture. The company operates without a traditional hierarchy, allowing employees to choose their projects. This flexibility promotes innovation and efficiency. Teams form and disband naturally as needed, avoiding the bureaucracy that often plagues large organizations.
The launch of the Steam Deck in 2022 perfectly illustrates this agility. Valve developed and marketed a high-performance portable console without recruiting heavily. The company prioritized strategic partnerships and automation over uncontrolled workforce expansion.
A difficult model to replicate
Valve’s performance calls into question the effectiveness of large Tech groups. However, this model remains difficult to reproduce. Steam benefits from a dominant position built over more than 15 years in a specific market. The platform benefits from powerful network effects: the more players there are, the more developers are attracted, creating a virtuous circle which strengthens its position.
Gabe Newell’s company demonstrates that a small, highly skilled team can outperform giants in terms of efficiency. This approach contrasts sharply with that of Amazon, which relies on a large workforce to manage its logistics operations, or that of Microsoft which maintains massive teams to develop and maintain its many products.
The impact of the artificial intelligence boom could reshuffle the cards in this ranking. Companies like Nvidia are seeing explosive revenue growth driven by demand for AI chips. However, Valve maintains its unique position thanks to its robust business model and minimalist approach to business management.
- Valve generates more revenue per employee than the tech giants with only 336 people
- The model is based on extensive automation and a 30% commission on sales
- The corporate culture without hierarchy and the agility of the teams enable this exceptional performance
