Valve is an excellent example of a company that is privately owned, so they don’t have to satisfy shareholders with constant growth for growth’s sake. And yet they’re still growing and making a profit, because they make a good product.
Phil and Xbox don’t have that luxury because their masters sold out decades ago.
Valve is also a good example of platform monopoly. People need to stop treating valve like they aren’t also a big problem with the modern games industry. They are PC gaming’s landlord taking a 30% cut of every sale. You have to be smoking crack if you think that doesn’t hurt game developers.
They are a monopoly because they’ve had the best product on the market consistently for 15 years. There used to be huge resistance to them and their drm from gamers, but they have shown over many years that they are trustworthy, unlike others that have tried this.
This is not an Apple or Google store situation where proper competition could not exist. They were always up against giants like Microsoft, EA, Ubisoft or more recently Epic.
No they don’t, Steam barely ever gets updated, it’s not magically better than the others it’s just the one everyone uses.
Digital storefronts are natural monopolies. No one wants to use a different game launcher because it’s annoying to remember multiple passwords, to remember which game is where, to install and have multiple launchers running. None of that is Valve doing some amazing engineering that no one else has done, it’s just the natural state of game launcher / storefront economics. The only reason Steam is what people prefer is because it was the first one on the scene and has the lion share of users and games for sale.
We see the same thing happen with streaming platforms, the same thing happen with social networks. And Steam is also a social network which reinforces the monopoly. The other launches have friends and chat and shit but no one uses it because their friends are on steam or discord.
I don’t doubt that Steam being first to market is the biggest reason for their success, but you make it sound as if there’s some alternative store that is better for the consumer in some way. What’s the alternative? I have yet to see any other store/launcher come close to Steam in terms of features, even more so when it comes to Linux support, which Valve have turned into a viable gaming OS pretty much by themselves. In the end, even exclusivity and drastically lower fees for publishers didn’t make EGS the success that Tim Sweeney wishes it was and I think at that point being first to market can’t be the only explanation. They have to be doing something right.
Today, yes, I agree. It’s really hard to compete with them anymore. But 15 years ago when everyone was rushing to capture the market, there were many opportunities to do so. Steam and valve were never infallible, but at least they took feedback and stayed consistent, unlike their competitors.
Nothing stops you from busting your games on other platforms when available. I always choose GOG over steam personally. What cut they take from publishers isn’t consumers’ concern.
They could definitely treat developers better, but they’re an example of treating customers right. That’s why they’re the biggest platform, and that’s why they admittedly have something debatably close to a monopoly.
Bullshit. That 30% cut pays for all the features that make steam a better store than any other store. Those features are all free for the gamers, because they are essentially paid by the devs in that cut.
If that cut wasn’t worth it, I don’t think Microsoft, ea and others would have come back to steam after trying to make their own stores (and failing).
How can it be a monopoly when I can just download another store with a click of a button? Which I have also done, and even bought games from those said other stores, but the experience was just completely miserable compared to steam, up to the point I’ve considered rebuying those games on Steam.
I don't think that :/ I think his statements and the games he chooses to back sort of prove that ultimately profit is what he is interested in. I don't blame him for that. But don't make him out to be what he isn't. He is a CEO first, being a fan of games falls lower on the list.
There is if they’re interested in competing with Steam. Epic made some very competitive offerings for the supply side of things and then provided very little reason for customers to ever shop there, which it turns out is just as, if not more important.
Let me gift games, let me wishlist games to receive gifts. There’s lots of other features I would also like but if other stores had that I’d be much more inclined to use the other stores.
I thought companies made money by selling a product to customers? Hmm, seems like there is some kind of contradiction here, perhaps Phil should look into that.
Investors don’t care about that anymore. Line must go up more and right now. If not, they will replace you with someone who promises to do that.
The best ways to raise stock prices include downsizing, jacking up prices, and cutting product quality to save cost. None of these are even remotely beneficial to the customers.
It’s not a contradiction at all. Yes CEOs are the main beneficiary of the system but they’re still accountable to shareholders who run on pure capitalism. There’s plenty of examples of CEOs trying to do the right thing only to get sued by the shareholders then kicked out of their jobs. Nothing about corporations inherently needs to be done in a capitalist way, except the fact that publicly traded companies are legally required by law to run as capitalistically as possible, and if you don’t accept Venture Capital or go public, good luck getting anywhere in this system.
Hell, basically the entire premise of syndicalism is to put workers in control of the workplace and let things naturally evolve from there. Once you remove the core pillar holding capitalism up, everything will fall down one by one like dominos. If you want to see a fraction of how that works just look at places with high unionization compared to ones without and it’s like a completely different world.
You make money by both selling more and spending less.
Think about it, you can have none money left over at the end of the month by working extra hours at your job or by spending less money on something - but what if you can’t work extra hours because there’s none available? And what if you need that extra cash at the end of the month? The only thing you can do is spend less.
Phil is kind of saying the same thing you’re saying here, but it’s not easy to just “sell more”, not when everyone else is struggling to have that extra cash to spend.
The games industry right now, as a whole, isn’t growing. That means companies are selling less. Phil end everyone else would love to sell more, by all means if you’ve got some solid ideas on how to do that then every games industry veteran out there will happily listen to you, but the sad and shitty reality is that sales are down and when you’re a business, if you can’t increase sales you’ve got to cut costs.
And that means job losses. It fucking sucks and we can have debates all day long about the merits of capitalism and all that, but that’s the reality of today. That’s the game. Phil is being honest and up front here, it’s a shitty game but he’s playing it and if he wasn’t playing it, someone else would.
Profit, selling games, and maximizing value for shareholders are all fully correlated, to the point of being the same thing at different stages of the process.
Modern capitalism moves away from all three by focusing instead on current-quarter profit.
The perception of profit is a more powerful force than actual profit.
Markets select for profit by simply trimming away the things that don’t make profit.
Boards of directors select for the perception of profit by firing CEOs who don’t provide them with that perception.
These systems are both operating. The companies that don’t make a profit will still die. It’s just that under this system, a company that’s on track to making profit can be redirected by a Board onto a path where they aren’t, because of that second mechanism.
Time will tell. I mean, he’s not wrong. I think it’s pretty clear that studios have to make profitable games at the cost of interesting games. But it’s not like msft or anyone else is going to change their behavior. They have a fiduciary duty to their shareholders to profit as much as possible.
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