I don't get it. Can someone explain the whole publisher thing to me and how Steam elminates the publisher?
What does the publisher do exactly? Market the game and get it put on store shelves? Couldn't a developer just make up it's own branch in the company to do the same thing?
(You weren't kidding about starting a new thread...you did it before I finished the reply, so I moved it here)
Publisher generally gives a developer an upfront royalty keyed to a minimum number of units they expect to sell, and when/if that is exceeded, they pay the developer for each unit over the minimum.
The Publisher is responsible for getting the game on shelves and advertised well. It's not as simple as just going to a store chain and saying "how much ya want?" There's a tremendous amount of competition for shelf space, and a publisher with an established and powerful sales network with good retail connections is quite valuable.
Of course, once a franchise is established and VERY successful (see: Half Life), the developer can cut better deals and just get a distributor only, or do it themselves (see:Star Wars/George Lucas). Steam appears to be Valve's attempt to have a direct sales relationship with gamers, cutting out publishers, distributors, AND retail by delivering the game straight to your home via the internet. It should result in lower prices because you're cutting out layers of distribution, but somehow I think the money gained isn't going back in our pockets, but rather Valve's.