Baldur's Gate 3 Alone Captured 21% of Steam's Revenues in 2023

Steam closed out 2023 with record-breaking numbers, pulling in an estimated $9 billion in full-game revenues. That marks an 18% jump compared to 2022 and more than double what the platform generated back in 2019. But while the overall growth looks impressive, the data also highlights a growing imbalance: a handful of blockbuster titles are capturing the majority of the money, leaving smaller games struggling to find their audience.

According to new figures from Video Game Insights, over 60% of Steam’s 2023 revenues came from just the top 10 new releases. The standout performer was Baldur’s Gate 3, which alone generated around $657 million, accounting for 21% of all revenue from new titles.

Expanding the scope to the top 100 games, they collectively made up 91% of full-game revenue. In other words, a few big winners are taking home nearly everything, while thousands of other releases barely register.

So why is this happening? Several factors are driving what analysts call a “winner-take-all” dynamic. First, the sheer volume of new releases makes it harder for smaller projects to stand out. Nearly 14,000 games launched on Steam in 2023, a 13% increase from the year before. Out of those, only 181 were AAA titles, but those big-budget games naturally commanded more attention.

Second, Steam’s own algorithms tend to reinforce popularity. Once a game starts selling well, it gets pushed harder in recommendations, which in turn drives even more sales. Add in the rising costs of marketing—something indie developers often can’t match—and the advantage tilts even further toward established publishers. And of course, blockbuster franchises and sequels come with built-in fanbases, giving them a head start before they even launch.

For smaller developers, the numbers paint a tough picture. Out of all the games released in 2023, only about 700 titles (5%) earned more than $100,000, and just 157 managed to cross the $10 million mark. That means the vast majority of indie and mid-tier projects are fighting uphill battles for visibility and financial sustainability.

This concentration also makes Steam’s overall growth more dependent on the success of a few major releases. If a year lacks strong AAA launches, the platform’s revenues could take a noticeable hit. In fact, Video Game Insights predicts a 2.5% dip in 2024 due to a lighter release slate. However, the long-term outlook remains positive, with forecasts suggesting Steam could climb to $11.5 billion in revenues by 2028, thanks to the continued global growth of PC gaming.

For indie developers hoping to make it big on Steam, the best strategies may be building wishlists and ratings over time, participating in seasonal sales events, and collaborating with influencers or publishers for marketing leverage. Standing out from the crowd is harder than ever, but not impossible with the right approach.