What is game distribution?

Game distribution is the process in which studios deliver their games to players, either physically or digitally. And there are a few different models for doing so:

• Publishers distribute a developer’s game through third-party video game distribution companies, like the App Store, Steam, or a retailer like Best Buy
• Developers distribute their game through third-party distribution companies
• Developers distribute themselves directly to the player (direct-to consumer, or D2C)

The distribution channel and method you choose can have a major impact on the success of your game. Let’s explore more about the history of game distribution, what it looks like now, and share some examples of studios that turned their games into huge hits by innovating on their distribution and go-to-market strategies.

A brief history of game distribution

Digital distribution has far surpassed physical game distribution: 75% of new games released in Europe in 2024 were sold as digital downloads, and less than 11% of U.S. console games were released as physical copies in 2021. But game distribution didn’t always look like this. 

Pre-Y2K: Brick-and-mortars

In the 1980s and 90s, physical game distribution was the norm, with players heading to brick-and-mortar shops like Gamestop to purchase floppy disks, CD-ROMs or video game cartridges that held their favorite titles. In fact, Doom became one of the most popular games ever released on floppy disks. 

To even reach retail stores, developers often went through publishers like EA, Sierra, and Activision. These companies had the resources, finances, and connections with video game distribution companies so they could get games onto shelves and into the hands of players. 

But with all of the steps involved in this distribution approach - game development, supply chain costs, retailer fee, platform fee, return costs - it didn’t leave much remaining revenue for developers. Plus, physical game distribution is quite restrictive when it comes to scaling: players need to go out and buy a new physical version of every new edition or sequel to a game, which makes regularly updates and introducing new content a much more rare and difficult process. 

Early 2000s: The internet boom

These issues around scalability and cost were addressed in the early 2000s with the rise of the internet and digital game distribution. In 2000, over 50% of U.S. adults were online - and this percentage grew to 71% by 2006. Now instead of heading to brick-and-mortars, players could simply go online, head to their favorite platforms, and install a game.

Steam is often recognized as the pioneer in digital distribution, starting in 2004 (even though in 2001, Stardock Central was actually the first digital video game distribution platform for PC). Steam became so popular for game distribution on PC that studios like id Software and Take Two Interactive decided to bring their games to the platform. 

Other platforms also started appearing as middlemen across environments, taking over from the third-party publishers who dominated in the 1990s:

• Console: Microsoft was the first company to successfully bring online console gaming to the mainstream after they introduced Xbox Live in 2002 to let users enjoy multiplayer gaming and download additional game content to their consoles. Playstation soon followed with the launch of their Playstation Network Platform in 2006. In these cases, developers distributed their games onto the respective platform, whether that was Xbox, Playstation, or Nintendo
• Mobile: Both the App Store and Google Play launched in 2008 as the primary platforms for mobile channel distribution. Before these app stores, most mobile games were distributed as premium titles - but with the rise of the App Store and Google Play, developers got access to player data that they could use to monetize their games. This new stream of revenue opened an opportunity to go from selling their games to offering them as free-to-play (F2P)
• Browser: With the rise of the internet, Flash games became very popular. And Flash game distribution primarily took place on third-party websites, like Miniclip, Addicting Games, and Newground
• Facebook: Facebook had over 1 million users by the end 2004 - a number that grew to 5.5 million at the end of 2025. As it grew, its social features attracted studios like Zynga who published their games within the platform and leveraged the social aspect. Other games like Pet Society (Playfish) did the same, letting players visit friends, decorate other players’ houses, and give gifts

“I think what we did was just realize that earlier than a lot of other people and then lean into the social interactions like crazy. Right away we had these features to send gifts across the table … There was no ability for you to send some ridiculous flamingo across the table in any of these other poker clients, it was like a brand new sort of thing.” - Justin Waldron, Co-Founder of Zynga, in Secret Stash ep. 5

2010s: D2C emerges

Later in the 2000s, D2C channels began emerging - mostly on PC. This is the era of titles like League of Legends (Riot, 2009), Fortnite (Epic Games, 2017), and Roblox (Roblox Corporation, 2006) all using their own D2C game launchers for game distribution. It’s also the time when studios like Playtika and Huuuge started building game websites to host their gameplay as a complement to their mobile apps. Players just needed to visit the site, login with their account info (or social credentials), and begin playing in their web browser. As a result, instead of using platforms like Steam or the app stores, these games were able to launch and distribute their games directly to players, bypassing the 30% platform fees, getting to engage with their user base directly (e.g. soliciting feedback), and enjoying many more advantages.  

Diving deeper into Riot and their decision to launch League of Legends through the Riot Game Launcher, we can clearly see the advantages of going D2C.

“I'm hyper aware of just how much of the success depended on the way we took a particular product to market” - Mitch Lasky, early-stage investor in Riot Games, in Secret Stash, ep. 1

Riot’s game distribution strategy emphasized the player experience and community - every feature and game decision was based on what would benefit their players, which included how they actually distributed the game. First, they tapped into a close-knit community of DotA players by hiring top DotA community managers and developers and pivoting DotA forums to direct to League of Legends instead. Taking over this community and using it to build hype for LoL was only possible by establishing a direct channel to their players. Then once the game was ready for release, they used a D2C game launcher that let them continue that direct relationship - and expanded on it by letting them gather user feedback and offer social features directly in the launcher, like matchmaking and a friends list.

“To be player-centric, you have to hear from your players” - Travis George, former Product Director at Riot

This pattern of going direct-to-consumer is one we’ve seen outside of gaming, too - from the rise of D2C ecommerce to hospitality cutting out the middleman through on-site booking discounts, loyalty programs, and more.

“In some ways, this is a story that has happened in every industry. Distribution innovations happen at a certain point in maturity. Like ecommerce, airline sales, hotels - you don't have travel agents anymore. They go direct-to-consumer.” Archie Stonehill, Head of Product, in Secret Stash, ep.6 

Now: D2C game distribution is the new way to innovate

The game launcher is growing in popularity as the PC video game distribution platform of choice - studios like Rockstar (Rockstar Games Launcher), Plarium (Plarium Play), and Epic (Epic Games Launcher) all use D2C launchers for game distribution. 

Meanwhile on mobile, sideloading is moving into the mainstream as a D2C game distribution strategy. Sideloading was always allowed on Android, but only recently was it allowed on iOS devices in the EU thanks to the Digital Markets Act.

And speaking of antitrust regulations like the DMA, there’s been a growing number of legislation and lawsuits targeting major platforms (e.g. the App Store and Google Play) to encourage a more open and fair ecosystem. What this means is that developers have more freedom to reach and communicate with their players directly. For example, Monopoly Go! from Scopely shows an in-game popup that directs players out of the app and to the web, taking them to the Tycoon Club page on the game website. Linking out like this from a mobile game is a new development made possible only by recent rules and regulations targeting Apple’s anti-competitive practices.

Beyond the new regulations, the reason for this rise in D2C comes down to a shift in the game industry, where innovation in distribution is making more of an impact than product improvements or changes. 

“I don't think product innovation and improvement can actually grow your game anymore. You're seeing so many people do really cool things with games, and seeing no uplift to the industry. So I was always looking at distribution innovations and direct-to-consumer is the biggest one.” - Archie Stonehill, Head of Product, in Secret Stash, ep.6

The evidence to support this comes from the slowdown in growth in the game industry in the past few years, despite major releases. For example, in 2023, highly anticipated video games like Baldur’s Gate 3 (Larian), the Valhalla DLC for God of War 2 (Santa Monica Studio), and Zelda: Tears of the Kingdom (Nintendo) were all released on console. However, that same year Newzoo reported only a 0.3% growth in the global console game market. Clearly, new and shiny games just weren’t going to cut it anymore to attract players at scale. Instead, studios that focused on game distribution innovations - like by going D2C - became  the ones rising to the top. 

And the key to succeeding with direct distribution in gaming - similar to what D2C did in other industries - is giving players an enhanced experience. For desktop games, game distribution through a launcher gives you entirely new ways to engage with your players that you can’t achieve by using a video game distribution platform like Steam or the app stores. Whether that’s introducing a loyalty program, integrating community features like matchmaking or a Discord feed, or giving players early access to exclusive content or product updates - going D2C is the best way to innovate on your game distribution and stand out from competitors.

“I would argue every game that has come out and been an innovative entry to the market, including Minecraft, but also League, Fortnite, Roblox, has had some interesting and great content, but they've also done something very differently in terms of how they released their games.” - Archie Stonehill, Head of Product, in Secret Stash ep. 7

The same goes for mobile games bringing gameplay and other engagement features to the web. Building D2C channels on the web, like a webshop, lets mobile games create new ways for players to interact with their games and brand universe. For example, Scopely has a matchmaking feature in the Marvel Strike Force webshop that lets players forge new alliances, get recommendations, and search for specific alliances. A feature like this expands upon the core gameplay and gives players a better experience so they retain and play for longer.

Why should you use D2C channel distribution?

Like we just mentioned, D2C game distribution is expanding today as the way to give players a better experience beyond what traditional third-party middlemen can offer - while still helping them scale. There are also a few more reasons why going D2C is so popular right now.

1. Save 30% on platform commission fees

One of the biggest advantages of D2C channel distribution is saving on the 30% commission fees that platforms like Steam, Apple, and Google take. Even if you shift just a small percentage of your IAP spend to a D2C channel, you can save a significant amount on platform fees. For example, using our fee calculator, we can measure how much a studio that earns $8 million each year in IAPs can save by shifting 15% of spend to D2C: over $450,000!

This results in higher margins - revenue that you can then put to other parts of your operation or reinvest in marketing to scale your game. You can even pass along these savings to your players, offering higher discounts, more deals, and other rewards that build value for your D2C channel.

2. Get access to first-party data

Third-party platforms like Steam, the App Store, and Play Store, maintain a lot of control over everything from content allowed on the platform to game update rules and requirements to pricing structures. Recently, Steam updated their rules so developers need to provide more transparency when it comes to their DLCs. Steam’s track record of control and black box approach extends to player data, too: in 2023, Steam removed developer access to Google Analytics - in the process developers lost the ability to see information like the gender, age, and geo of players that visited their Steam page and interacted with their game. 

D2C game distribution overcomes these challenges by giving studios direct access to first-party player data, which they can use to increase player lifetime value and reduce costs (marketing on the web is cheaper than on mobile ad networks). The ability to now optimize marketing campaigns, run retargeting campaigns, and place higher bids to attract high-value users - along with the higher margins of these channels, which we’ll get into shortly - helps developers increase their revenue despite the lack of data that third-party platforms provide. 

For example, Rockstar Games uses their Rockstar Games Launcher to distribute their Grand Theft Auto franchise directly to players. Since the launcher’s release in 2019, Grand Theft Auto V continues to earn over $150 million each quarter - and a good chunk of this revenue is free from the 30% commission fees of platforms like Steam. Beyond the benefits for marketing, access to first-party player data also means studios can analyze product performance and player engagement more effectively. 

3. Increase player spend

Since it lives outside of a third-party platform, a direct-to-consumer channel lets you run offers and introduce features that you can’t have in-game. Everything from a loyalty program to sophisticated discount strategies (e.g. BOGO offers and volume-based discounts) aren’t supported by third-party platforms - and they can go a long way to increase player spend. 

Let’s look at a loyalty program as an example. Offering players tiered rewards along with giving them other valuable content, like access to a VIP community, encourages players to spend more so they can reach the next loyalty tier. And the only way to take advantage of a loyalty program is by using a D2C game distribution channel. 

4. Offer cross platform play more easily

Cross platform gaming lets users play and continue their progress across multiple devices, whether that’s playing Clash of Clans on desktop or an Xbox title on Playstation. And cross platform game distribution is so popular right now because modern gamers are on more than one device, and they’re expecting to be able to continue playing where they left off - on mobile, console, and PC. 

D2C game distribution is the best way to offer a cross platform experience. That’s because going cross platform requires a unified login ID, so players can continue their progress on any device. And the preferred way to set up that unified login is by going D2C - so players are creating their accounts directly with you, the developer. 

“Cross-platform necessitates a direct to consumer relationship because the relationship needs to transcend the intermediary platform” - Archie Stonehill, Head of Product, at PGC San Francisco, 2024

5. Improve the user experience beyond gameplay itself

That idea we discussed before about innovating on game distribution, rather than focusing just on product, has a lot to do with this point. A D2C video game distribution platform lets players engage with your game in entirely new ways that they can’t do with traditional channels like Steam or the App Store. And this kind of innovation is what creates better experiences for players and helps your game stand out from the competition.

What kind of experiences are we talking about? Well, D2C game distribution lets you include features like social and community systems that exist outside of gameplay but end up enhancing the entire player experience. Fateless Games, for example, wanted to serve their community by integrating social and community features in their game distribution platform. In partnering with Stash to build a D2C game launcher, they’re adding a Discord integration, a content creator feature (similar to how Supercell runs their Creator Codes), and news/updates directly into the platform:

“The fact that we will have a direct way to communicate with them [players] and say, ‘oh, massive update coming in this month, we've got the 12 labors of Hercules coming in, a really exciting new event, with these new features.’ and explain why they should come back to the game. It's way more effective than just hoping they find a random email.” - Simon Lockerby, co-Founder of HH Gaming and Fateless Games, in Secret Stash, ep. 6

Scopely’s webshop for WWE Champions is a great example of this in action. Their storefront includes a ton of social discovery features that deepen player engagement and enhance that sense of community and teamwork that’s part of the core gameplay. From a top leaderboard to in-depth faction profiles, Scopely’s D2C channel gives users more ways to connect with others, boosts the competitive aspect of the game, and fosters a community of loyal players.

How to choose the best game distribution strategy

There are a few different routes you can take to distribute your game - whether through a publisher, with video game distribution companies like Steam or the app stores, or directly to the players. But the only way that you’re going to give players the best experience possible, scale your game profitably, and stand out from your competitors is with a D2C video game distribution platform. 

Direct game distribution isn’t just the future; it’s happening right now as the best way to innovate on getting your game to market and maintaining its success into the long-term. 

At Stash, we’ve helped our developer partners build custom D2C experiences from scratch to get their games into the hands of players - and boost revenue, retention, and engagement along the way for sustainable growth. Talk to us today about building a D2C experience for your game.