After decades of steady growth and a boom during the pandemic, the video game market’s return to normality over the past four years has forced companies to focus on protecting margins. They initially turned to staff reductions and shuttering studios, but now executives are reassessing one of the industry’s most entrenched expenses: distribution.

Financial pressures, combined with regulatory changes and rapid shifts in how players discover new games, have made direct-to-consumer distribution not just a huge opportunity but an imperative for remaining competitive. It brings benefits beyond margin recovery: direct relationships with players, flexibility in pricing and promotions, and freed-up cash that can be reinvested in product innovation, marketing, and better services.

New era for game discovery and distribution

For decades, companies distributed games via cartridges and, later, CDs shipped in boxes to retail stores worldwide. Gamers discovered new titles through industry media reviews and previews, advertisements, and word of mouth. When distribution moved online, digital marketplaces—such as Steam on PC and Apple’s App Store and Google Play on mobile—became the primary distribution channel for many games. These platforms also became the go-to resource for players seeking their next game.

Gaming companies initially accepted the fees these online storefronts charge—typically 30% on each transaction—as a fair trade-off for replacing physical distribution. Even in this digital era, distribution remains the single-largest cost item for many gaming companies; the only thing that comes close is marketing budgets. That’s particularly true for mobile game developers—platform fees can represent as much as one-third of their costs.

But game developers are questioning whether these platforms continue to provide enough value to justify the cost, especially as players’ sources for discovering new games have quickly evolved. Today, around 24% of gamers rely on online content creators or “influencers” to discover new games, while 14% use social media posts as their main source, according to Bain’s 2025 survey of more than 5,000 gamers worldwide. This changing landscape diminishes digital platforms’ visibility advantages. The result: Only 12% of players now say they discover games via digital storefronts (see Figure 1).

In response, publishers have created influencer programs to generate traffic for their own stores, offering revenue-sharing incentives for influencers to promote direct sales links. The number of large game publishers with content creator programs jumped from 5% in 2019 to 65% this year.

In our survey, around a quarter of mobile gamers reported buying content directly from a developer's store in the past year, reflecting growing comfort with developer-run commerce and a willingness to support games more directly.

In an increasingly fierce fight for players’ attention, companies that switch at least partly to direct distribution will gain significant advantages over competitors. They’ll enjoy far superior profit margins, which means more money to funnel into marketing and new product development, making their competitors less relevant to consumers.

Mobile leads the charge

Mobile games have quickly shifted toward direct distribution. The share of top-grossing mobile games with their own online stores has nearly quadrupled over five years, from 12% to 44% (see Figure 2).

Legal developments are accelerating the trend. Rulings in the US, the EU, and Brazil have barred app stores from punishing developers for steering users to external purchase links. In the EU and Brazil, app stores also now allow sideloading and third-party payments. Developers now have more freedom to communicate with their users about direct distribution options.

The reasons gamers utilize direct-to-consumer channels vary, but some of the most commonly cited ones include recommendations by friends, content creators, or the gaming community; more flexible payment options; better prices; and lack of platform fees, according to our survey (see Figure 3).

Direct channels’ share of revenue is growing. Playtika, for instance, now generates 27% of its game sales through directly owned platforms, up from 14% in 2020. During that period, the company has boosted its sales and marketing spending by 40% while maintaining a stable margin.

PC gaming: New models emerging

Steam has long dominated PC game distribution, but leading games such as Fortnite and League of Legends have proven that direct-to-consumer models can work at scale with the right content.

Epic Games' decision to launch the Epic Games Store with a 12% revenue share helped challenge the 30% status quo, forcing Steam to offer tiered fee reductions for high-earning titles. Meanwhile, Riot Games and Blizzard continue to control their ecosystems primarily with their own launchers, leveraging player accounts to build long-term engagement while avoiding paying fees to distribution platforms.

Smaller studios still depend on Steam for discovery, but that reliance is weakening. According to a Newzoo report, traffic generated by Steam promotions in 2024 was only a quarter of what it was in 2019. With content creators and social media increasingly fueling discovery, PC developers are beginning to see value in establishing parallel or hybrid distribution models.

Checklist for gaming companies

Of course, transitioning to direct distribution comes with risks, particularly to gaming developers’ relationships with the big platforms. Although legal rulings have created protections for gaming companies’ direct-to-consumer initiatives, uncertainties remain. Gaming companies will want to proceed thoughtfully so they maintain good relationships with platforms that account for a large portion of their revenue, at least in the short term.

Leading gaming companies are adopting an all-of-the-above distribution approach. Although they’re not exiting the big platforms (for now), they recognize that companies that don’t invest in direct distribution channels will get left behind.

Here are four key steps the emerging leaders are taking:

1. Define the direct-to-consumer strategy and roadmap. Leading companies are assessing what portion of their business can shift to direct channels, whether via a launcher, web store, or social-driven funnel. This is uncharted territory for some companies, so close cooperation between the development and direct-to-consumer store teams is essential. Leading companies make sure the direct-to-consumer store team’s strategy and marketing efforts are consistent with the game development team’s. They also partner with vendors (e.g., online payment processors and online game store specialists) to extend their capabilities and deliver the best service possible.
2. Hone the experience. Gamers stick with traditional platforms largely due to convenience. Direct-to-consumer experiences must therefore be seamless (e.g., maintaining a consistent design and user experience that limits friction) and deliver clear value, such as flexible payment methods, loyalty programs, and exclusive content or rewards.
3. Don’t abandon discovery—redirect it. Leading companies offset their reduced presence on Steam or app stores with influencer campaigns, search engine optimization, and community building. They treat game discovery like a funnel: What was once store-driven must now be community-driven.
4. Build creator ecosystems. Influencers are today’s game marketers. Leading companies support them with affiliate programs, exclusive content, and tools that propel engagement and traffic to owned platforms.

For example, Supercell has built a comprehensive direct-to-consumer strategy. Through its browser-based store, players can access exclusive content and use a variety of payment methods. Integration with a player’s Supercell profile personalizes the experience, while the company’s content creator program drives traffic by sharing revenue with influencers. These efforts not only can improve profitability but also build loyalty and community engagement.

The bottom line

Direct distribution is no longer a fringe strategy—it’s becoming a core part of monetization and player engagement. For companies that already have a strong product and fan base, it represents a significant opportunity to boost revenue, build brand loyalty, and own the customer relationship. While platform ecosystems won’t disappear, the balance of power is shifting. Companies that adapt now will be best positioned to lead in a more open, player-driven future.