The Role of Platform Governance in Shaping Consumer Engagement: The Case of STEAM Platform

This paper examines the dynamics of platform ecosystems, focusing on the platform governance, competition dynamics, and their impact on consumer engagement. Through the case of STEAM, a major video game distribution platform, we investigate the implications of Valve's entry, a subsidiary of STEAM, on competition and consumer engagement. Using a quasi-experimental approach, we analyze changes in developer strategies and consumer engagement post-Valve's entry. Findings reveal nuanced changes in developer-consumer relationships, highlighting the role of platform governance in shaping competitive strategies and consumer engagement. The study contributes to understanding platform ecosystems by elucidating interactions between platform owners, developers, and consumers. It underscores the significance of platform governance in influencing competition dynamics and consumer behaviors within these ecosystems, offering practical implications for platform owners and developers to navigate and respond strategically to evolving landscapes.