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-For the record, I am fine with paid mods if it's done right.
(Please, before you continue QUOTING me, read that I've changed my opinion. No need to keep beating me with a dead horse :P)
What I do have a problem with is what occurred when Valve first tried to introduce it and what happened again when they brought it back for map passes for DOTA 2: stolen assets. It was occurring when paid mods went live for Skyrim and happened again when the DOTA 2 passes went into effect. It occurs because these programs aren't regulated and have no oversight. They're only brought to light when the rest of the community realises that, "Hey, that feathered armour was developed by MORKowbell" or "Those flaming pits with the neat lavalantula spider effect were done by the Gutenbergenator, who's this chump trying to sell it as his?"
If publishers get their act together and can regulate it properly as third-party DLC, I think they should go for it. But the multiple times Valve have tried it here have shown that a free-for-all market doesn't work.
Money is a factor because companies see how well made mods extend their products in both long-tail sales and in positive word-of-mouth. With this, they want to be able to extend the ability for people to freelance work. Also because a LOT of people have projects that they love to do; if they can get paid for it, then it motivates them to work on it more.
NPR's On Point had a piece about how common the "side hustle" is becoming.
When you think about things like Patreon and GoFundMe and even Paypal, this wasn't around when people were making Quake mods. If they could have gotten paid, I'm sure some would have loved to. Most did mods to pad out their portfolios and for fun. Modding is a great way to gain entry into professional game development and is how a lot of today's prominent developers got started.
The big problem with Bethesda was that paid mods were not going to be curated. There needs to be some kind of verification scheme, mainly with longtime and trusted modders getting admission first. IMO, the ability to sell mods on Steam should be a privilege that you earn the right to do, not a right given to any and every user.
There's always going to be people who try to run scams. Anywhere where money can be made, there will be scams. That doesn't mean you throw the baby out with the bathwater. It's a bit difficult for any one team to be able to know and recognize any and all assets for a game. Because of the hivemind of the internet, though, there's always some fan that will be able to spot when something has been ripped off.
While it kind of sucks to say that the only truly reliable way to verify original content is to crowdsource the verification process, that really is the only way to reliably do it when it pertains to things like game assets.
The very first one--Very first--Custom Game Pass had stolen assets. It wasn't regulated at all.
http://steamed.kotaku.com/creator-of-dota-2s-first-paid-custom-game-apologizes-fo-1766279745
One of four managed to have stolen content, which essentially killed the program.
* Stolen assets
* Buggy or broken mods
* Mods that worked fine but then break on a game update and never get fixed
The fact that a refund policy even exists now could help to some degree, allowing people to refund mods that turn out to be horridly broken out the gate. All 3 of these are pretty serious issues, and the first one there could even get Valve in legal hot water if they don't do enough to crack down on it. There would need to be a solid solution to all 3 of these issues for the system to exist.
I think such an issue can be taken care of by allowing people to flag items for copyright infringement, or the creator or copyright owner of said item to file a DMCA. I also think Steam / Valve should make it clear in the TOS that only mods that contains things which you rightfully own intelectually can be sold for cash, that's how it's done in SL, at least. (plus other suggestions others have posted in this thread)
A free-for-all market could work with proper management, for example, I read that 60 million USD was cashed out by SL users in 2015 alone, and I believe a large portion of it came from people selling contents they created. Imagine the market value for such an ecosystem hosted by Steam, a platform with 125 times the amount of active users compared to SL (125 million vs 1 million).
But yeah, what happened was unfortunate and I really do hope they get re-implemented in the future with proper management.
Np :)
I wrote above on how the first issue could possibly be addressed, as for the other two;
* Buggy or broken mods
I think an organic development of such an ecosystem coupled with a decent community rating system can help with this. For example, I don't think anyone would rush out to buy something expensive that's not really well-presented and was made by someone who's relatively unknown, and creators who decides to sell their mods for quite a high price can give out free "demos" for people to try whether or not the mod works on their end. (for example, people selling original armor mods can put watermarked textures with floating text on the armors' demo, and if the mod works and the user likes it, they can then proceed to buy it)
* Mods that worked fine but then break on a game update and never get fixed
That's the kind of acceptable risk that a lot of people should be familiar with I think. It's the same story with many early access games and mods out there, people evaluate these things based on how they are presented by the creators and then they decide whether or not these things worth the price and risk.
Maybe if something breaks after a certain update, users can flag or comment on it as "not compatible after x update" and whether or not the creator would fix it is part of the risk, both for the buyer and the creator as it's their reputation that's at stake.
Both of which were there for both previous attempts on Steam, didn't stop people from using stolen assets.
I'm sure there are ways to (technically and legally) combat that.
Take YouTube for example, there are people uploading videos that infringes people's copyright in a way or another, but they have ways to combat that. Same thing with the platform I used as an example in my earlier posts (or any other company out there that relies on user-submitted contents for that matter), they have ways to combat this kind of thing to make sure it won't bring the company down.
Better regulation. Which Valve have made clear that they don't want/are not capable of providing through scuppering both programs.
I think what made them scrap the program was mostly the community backlash, Valve (or Gabe Newell) are pretty vocal in their opinion regarding paid mods.
http://www.pcgamer.com/valve-modders-absolutely-need-to-be-paid/
That's a new article from February this year, they showed a pretty strong interest in bringing paid mods back, so I think they are ready to provide the necessary manpower and resource to better regulate it.
There wasn't as huge a community backlash with the Custom Game Passes as there was with the Bethesda paid mods. When the pass with stolen assets appeared, they basically stopped the programme from progressing beyond the initial offerings.