Why Valve Survived Amazon’s Steam Challenge

A former Prime Gaming VP reveals the lessons learned from the giant’s failed attempts to conquer Steam, including that size isn’t everything in gaming.

Amazon thought it could dethrone Valve by leveraging its massive size and resources, but Ethan Evans, the former Vice President of Prime Gaming, has come to a different conclusion. In a recent LinkedIn post, Evans admits that Amazon underestimated what made consumers use Steam, citing it as a store, social network, library, and trophy case all in one.

Evans recounts three failed attempts by Amazon to challenge Steam, including an online store based on Reflexive Entertainment’s platform and a game store after acquiring Twitch. Another attempt, Luna, was a cloud gaming app that failed to gain traction.

The key takeaway from Evans’ post is that size doesn’t guarantee success in the gaming industry. The PC gamer’s platform of choice has remained a dominant force despite being relatively small compared to Amazon and Google.

Thorn, meet side. Valve’s efficiency per head outperformed Apple, Facebook, and other tech giants, demonstrating its ability to punch above its weight.

Evans’ comments highlight Amazon’s ego, stating that size and visibility weren’t enough to attract customers. He emphasizes the importance of validating core assumptions before investing heavily in solutions, illustrating that gamers already had the solution to their problems and wouldn’t switch platforms easily.

In a later comment, Evans notes that Steam is easy to underestimate, but his post offers a valuable lesson for companies like Amazon and Sony, who may be underestimating Valve’s strength.

Source: https://www.pcgamer.com/gaming-industry/amazon-apparently-thought-it-was-gonna-compete-with-steam-since-the-orange-box-but-prime-gamings-former-vp-admits-that-gamers-already-had-the-solution-to-their-problems