Steam has stopped payments to Russian developers. How and where can I sell games now?

Contents:

• Which stores have suspended payments and why?
• Do Russian developers have ways to withdraw money?
• Can trading platforms change their decisions?
• How might this all end?

The situation in Ukraine and the introduction of new sanctions have created a new reality for the Russian gaming industry. Many Western companies have ceased cooperation with both individuals and legal entities from Russia. One of the main problems was that the Steam platform suspended payments to developers, which created additional difficulties for domestic gaming studios. As a result, Russian developers face restrictions in accessing international markets and resources, which negatively impacts their ability to develop and compete.

Many game developers in Russia are facing uncertainty and difficulties regarding the further development and monetization of their projects. We spoke with experts in game design and development to explore how to overcome the negative impact of sanctions and restrictions and find new ways to generate sustainable income in a changing market.

The situation is changing rapidly, so some recommendations in this article may become outdated by the time of publication or shortly thereafter. We will update this material regularly to ensure it remains relevant. Please note that Skillbox Media provides only possible solutions and cannot provide legal advice. For professional advice, we strongly recommend contacting qualified lawyers.

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The future of the gaming market in Russia: the opinion of domestic developers on game development

The gaming industry in Russia continues to develop, and Russian developers have a unique vision for its future. In the context of globalization and international competition, Russian studios strive to create high-quality and original games that can take their rightful place in the market.

Among the key factors contributing to the development of Russian game development are the growing interest in video games, the increasing number of players, and the availability of technology. Russian developers are working to create unique products that reflect the country's culture and traditions, which can attract both domestic and international audiences.

One of the main tasks for Russian game developers is to improve the quality of games and optimize development processes. This includes the implementation of modern technologies and tools, as well as active cooperation with international partners. Another important aspect is the training and attraction of young professionals to the industry, which will help ensure its sustainable growth and development.

Thus, the future of Russian game development appears promising. With the right approach and support from the government and investors, domestic developers can create competitive games that will find their place in the global market.

Which stores have suspended payments and why?

In mid-March, Steam became the first major gaming service to suspend payments to studios from Russia, Ukraine, and Belarus. Previously, the restrictions only affected players, who were unable to purchase games using bank cards. Following this, a number of major publishers, such as Capcom, Sega, Square Enix, Microsoft, Sony, CD Projekt RED, Rebellion, Techland, WB Games, Ubisoft, Take-Two, and Electronic Arts, removed their games from the Russian segment of Steam. An anonymous developer explains the reasons why Steam stopped transferring money to studios from Russia.

Valve is delaying payments, and this is not related to discrimination on the part of the platform. The problems arise due to the position of the bank with which Valve works. This Western bank does not want funds to enter the Russian financial system. As a result, developers from Russia, Ukraine, and Belarus will not receive any payments this month. This situation highlights the difficulties developers face under current financial restrictions.

In February, Steam stopped transferring funds to banks subject to US and EU sanctions. Russian developers were able to circumvent this restriction by opening accounts with banks not on the sanctions list. However, this method no longer works. As a result, domestic developers have lost not only income, but also the ability to release new games. This was reported by indie developer Sergey Noskov, creator of 35MM and The Light. The current situation significantly complicates the lives of developers and jeopardizes the future of the gaming industry in Russia.

Access to Steam generally works normally, but there is an issue with paying for the "slot" for publishing a game due to sanctions imposed on banks. "Slot" represents the opportunity to publish one project, and a fee of $100 is charged for it. Taking into account regional prices in Russia, the cost of a "slot" is approximately 4-6 thousand rubles.

Not all platforms have suspended Developer payments. The issue did not affect PSN, Xbox Live, or other digital distribution services. The mobile market remains relatively stable. Although Google Play prohibits Russian users from making purchases, including in-game ones, developers continue to receive payments. This information was published in the Telegram channel "Grishakov's Headquarters," which covers events in the game development industry.

Advertising is the main source of income for most free-to-play game developers. Evgeny Grishakov, an indie developer at Garden of Dreams and the author of a popular Telegram channel, shares his opinion on this matter. He emphasizes the importance of properly integrating advertising into the gaming environment and the need to maintain a balance between revenue and user experience. Effective advertising can not only generate profit but also improve interaction with players if it is properly adapted to the game's content.

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Advertising for Russian developers is no longer effective through AdMob and AppLovin. These platforms accounted for 50-60% of the market, and their demise has significantly reduced revenue. As a result, revenue for Russian developers has fallen sixfold. Other ad networks continue to operate but are unable to compensate for the losses caused by the demise of the largest players. This creates significant challenges for developers, who must seek new monetization sources and adapt their strategies to the changing advertising market.

The situation with the App Store is similar. However, in this case, Russian users can make purchases using foreign cards. "This creates significant difficulties, which is why, by my estimate, we've lost 97% of players from Russia," notes Evgeny Grishakov.

The decline in advertising revenue has had a significant impact on game developers. Indie developer Oleg Skutte, known for his fighting games Drunken Wrestlers 1 and Drunken Wrestlers 2, shares his experience and the consequences of this crisis. He emphasizes how declining advertising revenue threatens the financial stability of independent studios and limits opportunities for new projects. In the face of fierce competition and changing market conditions, developers must find new ways to monetize and adapt to current realities.

Supporting games in Russia has become economically unviable, especially given server costs. Many developers and companies that were counting on revenue from these markets are now facing a dilemma: restrict access for Russian players or postpone such decisions? In the changing economic climate, it's important to consider not only financial aspects but also future prospects for engaging with Russian users.

Since Google Play and the App Store do not accept payments through Russian banks, developers are facing challenges with down payments. Oleg Skutte explains that while publishing a new game on Steam requires $100, a one-time registration fee of $25 is sufficient for Google Play. Meanwhile, the App Store has an annual fee of $99. Payment difficulties limit the opportunities for Russian developers and impact their participation in international platforms.

Problems with payments on Google Play and the App Store have also affected browser-based projects. Advertising networks that facilitate withdrawals on mobile platforms are also active on the web. This creates difficulties for developers and users wishing to conduct financial transactions online. It's important to keep in mind that such financial restrictions could impact the monetization of web projects and the overall availability of content.

According to developers, there are no issues with payments from PSN and Xbox Live, the digital distribution platforms for PlayStation and Xbox consoles. However, the eShop service for Nintendo Switch is not processing payments to developers in Russia. This information was provided by an anonymous source.

I am a Nintendo Switch game publisher, and Nintendo will be unable to send me payments this month for the same reason that Steam is also delaying its transactions. The eShop pays Russian developers and publishers in rubles, but Nintendo's bank has suspended all ruble transactions. As a result, I am unable to make payments to the developers of the game I published. This situation highlights the challenges developers and publishers face in the face of economic restrictions and changes in the financial system.

The rest of our survey participants did not report similar issues with the Nintendo service. It's difficult to determine the extent of this situation at this time, as there are no other reports of frozen funds online. One anonymous respondent explains why this issue affected him specifically.

If a developer releases their game through a publisher based in Europe, Nintendo's funding initially reaches the publisher in euros (or dollars if the publisher is based in the US). The publisher is then obligated to ensure the developer receives the corresponding share. In this case, the developer's receipt of money depends on the publisher's activity and cooperation with the banks it uses.

Are there any ways for Russian developers to withdraw money?

The first thing that comes to mind is finding a reliable person abroad who can receive the money from the store and send it to the owner. However, this method won't work, especially in the case of Steam. An anonymous source explains the reasons for this.

Steam has strict rules and security mechanisms that make the successful use of third-party intermediaries impossible. It's important to remember that any attempts to bypass official channels can lead to account blocking and loss of funds. Therefore, if you are looking for ways to safely transfer or purchase on Steam, it is better to focus on official methods, such as using a currency exchange platform or direct transfers through trusted payment systems. This will ensure the safety of your funds and maintain access to your account.

Using a nominee won't work. The name under which the bank account is opened must match the name under which the developer's account is registered. Simply changing your name in the settings won't solve the problem, as this is the name you used to fill out the W-8 BEN form, undergo verification by US tax authorities, and sign agreements with the platform. It's crucial to ensure consistency between your account information and your bank account details to avoid potential legal and financial complications.

Opening an account with a Russian bank that isn't subject to sanctions is an important task for developers. Many note that under such conditions, there's a chance of success. However, current practice often yields different results, notes Sergey Noskov. This underscores the complexity of the situation and the need for a thorough analysis of available options to ensure financial stability.

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The issue with payment accessibility on Steam arose due to sanctions that affected certain banks. Later, the platform sent out a notice clarifying that payments for users from the country are currently impossible, regardless of the selected bank.

An anonymous developer disagreed with a colleague's opinion, pointing to the possibility of opening an account with a Russian bank that is not subject to sanctions. However, he emphasized that this is impractical in the current situation.

Steam will not transfer funds to accounts in Russia, as the list of sanctioned banks is constantly updated. I would recommend opening a bank account closer to the time when Steam representatives confirm the possibility of transferring funds.

Forget about accounts with sanctioned banks. Companies from the US and the EU are not allowed to do business with such institutions without the risk of breaking the law. While an account with a bank that is not subject to sanctions may be useful in the future, it is not advisable at the moment.

Several solutions exist, although they can be complex and expensive. One such option is opening an account with a foreign bank. There are many myths surrounding this procedure, including the belief that individuals and people without a residence permit are denied account openings. We cannot confirm this information, but we can note that this service is usually associated with high costs.

In Portugal, the average cost of a guarantor is around €150, opening a bank account costs €350, and maintaining it costs approximately €100. These amounts are averages and may vary depending on specific circumstances. An anonymous developer notes that he does not want to spend €600 on services that may not be needed in two months. However, if he needs to go a long time without receiving payments from Steam, such an investment will be justified, and the developer will open an account. At the moment, he prefers not to waste money and time on potentially unnecessary costs.

Before the events in Ukraine, it was possible to open accounts with foreign banks remotely. Currently, many foreign banks are wary of Russians and often refuse account openings. As game designer and head of the Masterskaya 15 studio Yaroslav Kravtsov notes, it's important for banks to understand that opening an account is related to conducting business and receiving payments from other countries, not cashing out funds from Russia. Kravtsov also points to another reason why banks have become less willing to provide services to Russians: increased risks and the need to comply with international regulatory standards.

Currently, many neutral companies prefer to distance themselves from Russia to avoid the consequences of sanctions and the phenomenon of cancel culture. This phenomenon is observed across various industries, where businesses seek to minimize risks associated with potential reputational damage and economic restrictions. This behavior by companies highlights the importance of caution when conducting international business and the need to adapt to changing conditions on the global stage.

According to respondents, the option to open an account remotely is only available in Kazakhstan. This statement is confirmed by Andrey M., a game developer for Azur Games and Supersonic.

Opening an account remotely is only possible in Kazakhstan, where a fee of 20,000 rubles is required. However, I decided not to take advantage of this opportunity due to the high taxes in the country.

Most European banks are unlikely to be open to cooperation with citizens of the Russian Federation. This opinion is expressed by entrepreneur and author of the Expert Telegram channel, Stas Zolotov. In the current economic and political realities, many financial institutions prefer to avoid interaction with Russians, which significantly limits opportunities for business and personal financial transactions.

Currently, opening bank accounts in European countries is becoming increasingly difficult, even for the purpose of purchasing real estate. The situation is aggravated by the fact that banks are beginning to check existing accounts issued to Russians. For example, a friend of mine received a call from a bank inquiring about his loan repayment status and whether he had made payments from Russia. This was solely due to his Russian name, even though he had long since left the country. It's unclear why such checks are being conducted: perhaps banks are trying to freeze accounts or require additional documents to confirm the client's financial stability. Although I am unaware of any cases of account freezing, the risk of such actions remains relevant.

Opening an account in Europe has become more accessible thanks to the possibility of registering in Cyprus. Andrey M. shared his experience opening an account remotely on this island. This solution is suitable for those looking for simple and effective ways to manage their finances in Europe. Cyprus offers attractive conditions for opening bank accounts, including access to international payment systems and asset protection. The process of opening an account remotely involves a few simple steps that require minimal time and effort.

I found a local specialist who offers account opening remotely. The service costs between $1,700 and $2,000, and for this fee, he registers a local company. This is a legal scheme, but it does come with additional costs: a $300 monthly account maintenance fee. This includes the salary of the nominal director and the rent for a legal address, which is not a real office.

There are more reliable ways to open an account abroad—one of them involves a personal visit to the country where the operation is planned. This means relocating to another country and accompanying part of the team. Relocating all employees at once can be difficult, notes Yaroslav Kravtsov, who continues to run his business from Georgia. This approach not only avoids bureaucratic complications but also establishes closer ties with local financial institutions.

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Some members of our team cannot relocate because they have not obtained foreign passports. Others do not want to change their place of residence due to children and their educational issues. As a result, I'm not entirely confident in the advisability of relocating the team to Georgia. I'm continuing to consider alternative relocation options.

Discussions about relocation often mention not only Georgia, Cyprus, and Kazakhstan, but also Armenia and Azerbaijan. For those planning to relocate their business, these countries are worth considering. Whether you're aiming for Europe or the CIS, it's important to check in advance whether local banks work with Russian clients. This will help avoid unpleasant surprises and financial losses associated with the trip.

According to experts, there's a belief that doing business abroad requires registering as a legal entity. However, you can also open an account as an individual if your financial turnover meets established requirements. This allows for more flexible financial management and simplifies the process of doing business abroad. Opening an account as an individual can be a profitable solution for those just starting their business or prefer to minimize administrative costs.

Individuals with a small turnover can open a bank account without much difficulty, says indie developer Roman. In contrast, large companies face stricter conditions: they are subject to increased scrutiny and thorough review of all aspects of their operations. This approach by banks is driven by the need to minimize risks and ensure compliance with financial and legal regulations.

Yaroslav Kravtsov echoed his colleague's opinion, noting that large budgets require registering as a full-fledged company. This not only allows for the legalization of financial flows but also ensures operational transparency, which is important for attracting investment and partners. Company registration provides the opportunity to operate at a higher level and expand the business, taking into account all legal aspects.

Our team develops custom games for large companies, which requires sending payments not only to me but also to employees. If I had made these payments as an individual using a personal card, the tax service could have held me liable and imposed fines. In addition, if a company pays significant amounts to one individual, tax authorities may have suspicions about the legality of such transactions.

Opening an account and a company abroad is just the first step. Deciding how to transfer money to Russia is important, especially if part of your team continues to work in your home country. Transferring funds between countries can be fraught with various difficulties and nuances. It's important to consider both legal aspects and possible transaction fees. Choosing the right method of transferring money will not only simplify financial transactions but also help avoid legal problems. Consider various options, such as international bank transfers, money transfer systems, or cryptocurrency solutions. Each of these options has its own advantages and disadvantages that are worth carefully considering.

Yaroslav Kravtsov notes that many people use various methods to transfer funds abroad. Some resort to limited transfers to relatives, while others are exploring the possibilities of cryptocurrencies. However, the main problem remains the ban on withdrawing funds from a sole proprietorship in Russia to a similar enterprise in another country. This creates difficulties for those who want to legally move their financial resources outside of Russia.

It's always possible to contact a company that will handle the transaction process. If you work with foreign publishers like Daedalic Entertainment or Klabater, they will handle the withdrawals, not you. However, it's worth noting that this scheme may not always be effective, as Evgeniy Kisterev from Mandragora studio points out.

Our partners treat us with understanding and trust, as many of them have been working with us for several years. They know that we are open, friendly, and dedicated professionals. However, if the situation in Ukraine doesn't change, Western publishers may have to stop paying Russian developers. It's only a matter of time and how things unfold.

Could marketplaces change their minds?

None of the platforms have completely left the Russian market. Valve has stated its intention to resolve the issues, but neither the company nor other service owners have provided specific timelines or plans. Their return remains uncertain, and in the current situation, Russian developers are facing a loss of revenue and access to a wider audience.

Oleg Skutte notes that approximately two thousand dollars are in limbo due to the freezing of Steam payments in Russia, Ukraine, and Belarus. He emphasizes that Steam payments account for a third of his income, but believes he has no right to complain, as many others have faced more serious problems.

The market situation is becoming more challenging for those who focused on domestic sales. Oleg Skutte notes that a significant drop in sales is expected, as more than half of purchases came from Russia, Ukraine, and Belarus. He expects revenue to decline by at least half. This highlights the need to adapt business strategies to survive in the face of changing demand and a shrinking customer base.

Evgeny Grishakov notes that Russian users generate virtually no revenue, which poses a serious problem for online games. If a game does not require server hardware, serving players becomes economically insignificant. In such circumstances, it makes sense to maintain access for Russian users. This affects not only domestic companies but also the players themselves, who are experiencing additional difficulties in the current situation.

With payment delays from foreign platforms and restrictions on game purchases for Russians, it is becoming necessary to seek alternative solutions. Companies from Russia and China, not subject to Western sanctions, could be a good replacement. Sergey Noskov shares his opinion on possible alternatives to Steam, examining available platforms and their benefits for users.

According to available data, Russian gaming platforms are showing poor performance, at least until February 24th. Given the recent problems with Steam, the situation may change. Personally, I used the My.Games platform, and my income there was only 5-10 percent of what I could earn on Steam. I only know about other, lesser-known platforms from reviews from colleagues, and, unfortunately, the results there are even more modest. I won't specify the names of these platforms.

Evgeny Kistenev stated that he is interested in the My.Games platform. He noted that he is currently not interested in other options, but will consider the Mail.ru store and the possibility of selling games through VK. Kistenev emphasized that he currently does not see any alternatives with the necessary infrastructure for successful game distribution.

There are currently no ideal alternatives to Steam in Russia, but some developers have expressed a willingness to publish their games on Russian online stores. Regarding the Chinese market, developer opinions are more definite and critical. One anonymous developer shared his doubts, noting that the situation in China is worrisome.

Mainland China is characterized by bureaucracy and secrecy. Given local regulations, high levels of piracy, and the dominance of Tencent, doing business in this country is difficult. For example, just a few months ago, the Chinese Steam client only had 14 games, and while this number may have increased, the level of freedom available to developers in the West is not available in China. Regarding the Asian market in general, I published my games on Nintendo Switch through a distributor. Many publishers miss this opportunity, which is a mistake, as the Asian market is quite profitable. However, finding a reliable partner in this region is difficult, and studying local marketing peculiarities requires significant time and resources, which I do not have.

Releasing games in Asia, especially in China, independently is almost impossible. This is due to numerous bureaucratic processes and market peculiarities. To successfully launch a game, it is necessary to collaborate with local publishers. They will help you understand the paperwork and assess how the game meets the requirements of a specific market. In addition, publishers can offer recommendations for changes that will increase the chances of successful sales.

How might this all end?

If the situation in Ukraine remains unchanged, the Russian gaming industry may face complete isolation, both forced and voluntary. In this situation, developers must adapt to new conditions. Oleg Skutte shares his perspective on this new reality.

Paying for software subscriptions, using hosting, and launching advertising campaigns have become unaffordable for many users. New developers from Russia face serious barriers when entering the international market. This creates significant difficulties for the development of the Russian IT sector and limits its opportunities. Under such restrictions, Russian developers must seek alternative solutions and adapt to the new reality to maintain competitiveness.

There are various forecasts regarding the future of Russian game development. Sergey Noskov notes that many are confident of significant changes in this area. However, he does not understand what exactly people mean by this. In his opinion, this primarily concerns the development of the domestic market, the creation of domestic platforms, and attracting investment. Despite Sergey's pessimism, an anonymous developer holds a different opinion.

To conclude on a more optimistic note, it is important to remember that everything passes. This may seem sad when we're focused on the positive, but it's helpful to remember during difficult times. In today's information flood, which often emphasizes the negative, the idea that "everything is temporary" becomes especially relevant. Banking problems and sanctions aren't permanent, and they will be resolved over time. Perhaps in the future, we'll see easier access to bank accounts abroad. The situation we find ourselves in may ultimately lead to positive changes. If events do not end on a positive note, it only indicates that the end has not yet arrived.