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Distribution (Ep. 14)

Gamecraft

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Redefining Distribution: From Shareware to Steam

Shareware represented an early innovation in distribution within the constraints of traditional packaged goods, while Steam redefined the model by leveraging the Internet. Steam's approach effectively eliminated traditional costs associated with physical goods and established a 30% take rate that likely mirrors historical retailer margins in the gaming industry. This shift illustrates how understanding existing cost structures can inform new models for digital distribution.

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