Right, although it's a combination of a lot of factors as well. You can release a shooter with a price tag since Halo and Call of Duty aren't being offered for free, whereas the same isn't quite true in the MOBA market. Even if Valve wanted to charge for Dota 2, I don't think that was an option. Among many, many other details/reasons.
And again, no one is claiming Valve is being "evil". Not in this particular post, but the responses to TB seem a little on the "overreaction" side.
So, what's this mean? Valve partners with a Chinese company to release "Steem: A Chinese client to interface with Steam"? Is it still marketed as Steam, with Valve still in control of stores/prices/servers/etc.?
EDIT:
I'm glancing through his video again, correct me if I'm wrong, but where does he say TF2 IS a loss leader, or that Dota 2 WILL BE a loss leader? He said that they could be loss leaders and still benefit Valve, which I think might be true.
And what opinions of others is he assuming? The only one I heard was that many LoL players won't move over because of a perceived value investment in LoL, which I also think is true. And I assume the "fear mongering" is him saying he's worried about the long-term repercussions of F2P in the PC market?
Again, correct me if I'm wrong, I was just flipping through the audio real quick.
"If I'm honest I view Dota 2, once again, as a loss leader for Valve... It's the same for TF2. Why do you think they constantly updated the game? It wasn't out of the goodness of their hearts... Maybe their stuff is anti-competitive. They offer this stuff for free because no one else can compete with it. They know there is no way there is going to be a free game with the quality of Dota 2. Nobody can afford to do that. Valve doesn't have to worry about keeping the lights on in the office."
Sorry for the choice quoting, but I really don't think Totalbiscuit knows what he's talking about. He's outright saying that Valve's practices are anti-competitive and implies this is heavily against consumer interest.
What he doesn't realize, or refuses to acknowledge, is that Valve has been very upfront about the amount of money that TF2 was bringing in the entire process. TF2 was never a loss leader. Sure, it brought many people onto Steam but the game continued to generate revenue from their free updates well before they even made the jump to free-to-play. TB suggests that Valve is cornering the market because they can throw their teams behind these grand projects that would never turn a profit to justify their development even though these projects - by Valve's own admission - turn a large, continuous profit by following this model. Sure, Valve
could run them as a loss leader but they aren't. Other companies aren't following these methods because they're aren't feasible. They aren't following because they want to make more money.
And this isn't even touching the large studios who make more bank than Valve like Blizzard/Activision who could easily follow the same model but choose not to.
His ultimate statement: "Dota 2 has the fairest pay model in the business but if anyone else were to do it, would it be a success? I've got to say, I'm not thinking it would be. And I've seen no evidence up to this point for a game to be successful, unless you're Valve, based on micro-transactions."
Well, first HoN and LoL both reported profits going to micro-transactions (so maybe he worded that last statement poorly) but if his assertion is that no one other than Valve can turn a profit using a
fair model then how can he say it's unlikely when no one but Valve has attempted it? From the data we have available, the only example of a fair model has been grossly successful.
Unless there are other free-to-play games with fair pricing models I'm not aware of. However, almost all the ones I know, successful or not, sell more than just pure cosmetics.
Edit - Wow, the whole video is actually a large rant and general fear-mongering against Steam and Valve.
Edit - One final thing. TB's argument is further problematic because success in the video game market isn't solely tied to production values. DayZ and Minecraft both show that you can have enormous success without having huge design teams behind them. The barrier of entry into the market is so low that Steam and Valve do not and can not feasibly ever monopolize it.