Amazon thought it could compete with Steam because it was so much larger than Valve, but Prime Gaming's former VP admits that 'gamers already had the solution to their problems'
Amazon tried getting into game production as well and seems to have middling results at best. Having the financial backing is significant, but it doesn't guarantee success.
So after investing millions in this, this is incredible insight that the VP has gained:
Talk to Real Customers Before Writing Code
I really recommend reading his LinkedIn post, just to understand how these people think, and how fucking incompetent people at the top raking in millions are. It's surprisingly honest for a LI post (although that bar is very low), probably because the guy is now retired and doesn't give a shit anymore.
I honestly never even processed that Prime Gaming was a thing and that it was trying to compete with Steam. I just knew they purchased Twitch and thought they'd probably abandon it into a shitty, old and slow site like they did with IMDB and Goodreads.
To be honest I really do prefer buying games on GOG. One day steam will go shit and we will be stuck with huge game libraries locked there. The day GOG goes dark I’ll still have all the offline installers of everything I bought.
Steam is a platform that happens to also have a storefront. Other companies are building storefronts and hoping that's enough.
If you can't provide fast downloads, cloud saves synced across devices, achievements, mod support, friends lists, and multiplayer support, it's not a real option. Being cheaper or having some exclusives aren't attractive. Gog already has the drm free angle to be a legitimate competitor.
Valve wins by doing nothing... it's a tale as old as time.
Steam's market share is a huge factor in why their competition never succeeds, but it's hardly the only reason. Steam is a whole platform, not just a launcher or storefront. And they're also cognizant that the consumers are not just a revenue source to be milked, but actually long-term customers whose loyalty is important.
It really shouldn't be a surprise that when you enter an established market, you're not going to accomplish shit by providing a lesser service while simultaneously treating the consumer worse.
The biggest advantage Steam has over other platforms:
They're not publicly-traded, meaning they are inclined to look out for long-term success vs. short term profits.
Steam is already on their systems, and may have been for 20+ years. Nobody wants a dozen fucking game launchers and Steam already has virtually every game in existence available there. Not to mention the "community" features, friends lists, etc. Every other platform is simply too late.
They have 20+ years' experience learning what gamers want and implementing it.
Amazon could probably compete with them if they really wanted to, but that would involve a large, long-term, consumer-centric investment, which probably isn't a good use of their money.
steam pros: a store that always has a sale or big holiday sale right around the corner, a social network, a library for game info and game modding, and a trophy case etc.
what was amazon offering? full priced games, no sales that beat steams (a free game offer now and then only if you give them $140 a year and forget about it), and shitty cloud streaming of few games? so they tried nothing actually meaningful, were all out of ideas, but shocked they lost
Who would've imagined given your disaster apps like the Appstore and your shitty "free app" giveaways. Even the FAQs you posted after shutting down the service were purposely vague and irresolute.
Of course I will consume digital products from you again! Said fucking no one.