VIDEO GAME PUBLISHERS SHOULD RETHINK THIRD PARTY GAME SALES
Paul Sulyok, CEO of Green Man Gaming, on unlocking revenue in an evolving industry
A
s is often the case, the video game industry is in a state of flux. This is nothing new. Economic pressures, rising development costs, and increased competition have forced publishers to
reassess their revenue generation. But they are overlooking a major opportunity: the industry is underutilising third party game sales, and they remain deeply misunderstood. For many years, publishers have been relying on platforms such as
Steam, PlayStation Store and Xbox Marketplace. These storefronts may dominate the digital distribution of video games, but they do not represent the full revenue potential. A well structured third party distribution strategy can increase a
publisher’s revenue by up to 20% - without devaluing the brand or significantly affecting primary sales. Why is this revenue stream ignored so often? The reasons for this include misconceptions, and an outdated industry mindset.
THE MYTH OF THIRD PARTY SALES: RISKS VS REWARDS Many publishers view third party distribution as a necessary evil, rather than a strategic asset. Their concerns around price erosion, unauthorised resellers, and a lack of control are valid. However, these issues only arise when the sales process is mismanaged, and they partner with the wrong distributor. A well structured third party strategy should be a controlled revenue
extension, not an uncontrolled free for all. Major gaming companies already leverage this model, but they do it quietly; with dedicated teams ensuring pricing integrity, market control, and strategic placement. Third party distribution is already a standard practice in many
industries. In retail, brands do not rely on a single store to sell their products. Most brands build multi channel sales strategies, which include both direct and third party sales, and video gaming must catch up. If handled correctly and professionally, third party distribution of video games offers price integrity, global reach, and incremental revenue. Global third party distributors can offer controlled pricing to prevent the undercutting of primary sales, and a predictable and structured way to increase sales without disrupting core channels. For publishers, the challenge is not whether third party sales should be
part of their business. Rather, the challenge is how they should manage them effectively.
IP MUST BE MONETISED As part of a financial reset for the gaming industry, large publishers are consolidating studios and cutting staff. Independent studios are struggling
26 | MCV/DEVELOP August/September 2025
to fund new projects. All the while, many gaming companies are leaving money on the table by ignoring alternative revenue streams. In an age where every percentage of margin matters, relying on one
digital storefront is no longer sustainable, and publishers must adopt strategies that extend beyond Steam. A modern distribution strategy should focus on three core elements:
• Ensuring that discounts occur on the publisher’s terms, preventing price collapse. • Expanding market reach by capturing revenue from emerging regions, and underserved storefronts that major platforms do not prioritise. • Increasing long term revenue by treating third party sales as an asset, rather than an afterthought. This creates a sustainable monetisation strategy for back catalogue titles. Publishers must learn to view third party distributors as a revenue multiplier, not a risk.
BREAKING THE STIGMA: TIME FOR INDUSTRY CHANGE Years of price wars, unauthorised resellers, and poorly managed distribution networks have sadly led many publishers to believe that third party sales are more trouble than they are worth. This could not be further from the truth. Even the biggest publishers
in the world leverage third party sales; they just do so under strict pricing and distribution agreements. The problem is that smaller publishers, without dedicated teams to manage these sales, often avoid the market entirely. For third party sales to be fully embraced, the industry must shift
its mindset. Publishers must be educated on best practices, and see the value in proper oversight. The demand is already there. Players are actively searching for trusted digital storefronts beyond Steam, and publishers have games that need to reach those players. All that is needed is a clear industry framework to connect the two.
A SMARTER WAY FORWARD Properly managed third party distribution is not an alternative to Steam or PlayStation. It is an essential complement to them, a financial safety net, an untapped growth lever, and a long term strategy for maximising IP value. If the gaming industry wants to weather economic uncertainty
and create sustainable growth, it is time to stop fearing third party distribution and start embracing it. In a market where profit margins determine survival, no publisher can afford to leave money on the table.
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