One thing that we have learned is that piracy is not a pricing issue. It’s a service issue. The easiest way to stop piracy is not by putting antipiracy technology to work. It’s by giving those people a service that’s better than what they’re receiving from the pirates. – Gabe Newell, 2011
Time and again, digital distribution platforms have proved this. Apple Music became a dominant music distribution platform at the height of Napster, LimeWire and other peer to peer sharing apps. They did it, because it was easier to just buy the tracks/albums you wanted than to dig through trackers and websites which may or may not actually have what you want. Netflix became the de-facto source for streaming movies at a time when BitTorrent was common and well known. Again, they made it easy and convenient, while not charging an arm and a leg. Steam also faced competition from BitTorrent piracy. But again, Steam made buying, downloading and running games easier than the pirates. And people are willing to pay for that convenience and not dealing with the crap which floats around the high seas.
And, so long as Steam continues to treat it’s customers right, those customers will keep coming back. And that’s the problem with Pitchford’s whole premise. Developers will go where the customers are. Sure, you’ll get the odd case of a publisher/developer doing an exclusivity deal. But even then, it’s probably limited, because the customers are on Steam. If another storefront wants to draw customers, they need to start with treating customers well. They will still face headwinds, as Steam has a large “first mover” advantage. But, success is going to start with making customers want to come back.