Third-Party Distribution for Digital Games

There are two key distinctions in the gaming industry that many developers aren’t aware of: Distributors and Publishers. While distributors were traditionally focused on physical distribution, the rise of digital products has created a whole new business in this space.

What is Distribution?

When you develop a game, you usually publish it on platforms like Steam, Epic Games, PlayStation Store, Microsoft Store, and Nintendo eShop. That’s all well and good, but a significant portion of the market actually exists outside of these major platforms.

There are plenty of officially operating retail platforms, such as:

• Allyouplay

• GamersGate

• Gamesplanet

• Humble Store

• Fanatical

And these are just a few. Besides global stores, there are also regional resellers with strong market presence. This is where distributors step in—they handle the entire process for developers, so you don’t have to.

Why Would You Need a Distributor?

You could go it alone, chasing down resellers, uploading keys, and juggling spreadsheets. But as your game spreads across platforms, the workload multiplies:

• Key Management: Generating and distributing activation codes for each store.

• Sales Tracking: Monitoring performance across fragmented dashboards.

• Revenue Delays: Waiting until month’s end to see what you’ve earned.

For indie developers—often teams of just a few people—balancing game creation, marketing, and distribution is a stretch. A distributor simplifies this by:

1. Streamlining Operations: They manage retailer relationships and logistics.

2. Saving Time: You focus on development, not admin work.

3. Providing Stability: Many offer steady payouts, easing cash flow worries.

Yes, distributors take a cut—typically 10-30% of sales—but the trade-off is often worth it for the efficiency and market access they unlock.

Deflation and How to Avoid It

Not all distribution deals are created equal. A poorly chosen partner can tank your profits and reputation. One major risk? Price deflation.

How Deflation Hurts

Some distributors buy keys at below-market rates, then slash prices further to move inventory. Picture this:

• Your game sells for $20 on Steam.

• A reseller lists it for $10.

• Players skip Steam, your brand takes a hit, and trust erodes.

This undercutting doesn’t just dent your revenue—it can alienate your core audience and devalue your work.

Safeguards to Implement

To protect yourself:

• Set a Fair Price Upfront: Agree on a minimum sale price with your distributor.

• Demand Prepayment: Avoid post-sale payment models that leave you vulnerable.

• Monitor Pricing: Regularly check reseller listings to ensure compliance.

A solid contract and vigilance can keep deflation at bay, preserving your game’s value across platforms.

Ownership Concerns

A common fear is that signing with a distributor means losing your game. Rest assured: a proper deal doesn’t touch ownership.

• What They Get: Distributors earn a commission (e.g., 20% per sale) for their services.

• What You Keep: Full intellectual property (IP) rights, creative control, and decision-making power over your game’s future.

Standard agreements limit distributors to sales logistics for a set period or platform. Always review terms—ideally with legal advice—to ensure your IP stays yours.

Who Should You Work With?

Chances are, your publisher is already distributing your game in different regions—probably at a very low price. A quick Google search will lead you to many different distributors, SaaS solutions, and vendors that offer various approaches to solving this problem.

I work with several game studios, helping them navigate these challenges. If you’re a developer looking for better distribution strategies, feel free to reach out! Let’s see what we can do together.