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this post was submitted on 22 Sep 2023
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Valve almost makes me believe in capitalism.
Just run the company in a way where you don’t really care about maximizing profit. As long as you’re not at a loss and are liked, you will be successful.
Valve could probably be much more profitable at the expense of being a bigger dick, but Gabe is chill.
Also because valve is private, they don’t have any legal obligations to return maximise profit. They can purposefully lose money if they want and it’s not illegal. (At least to my knowledge)
It would be illegal if they did it to price out the competition, which I don't think is something they do.
Thats actually what valve does. Valve mandates all games on platforms must be the same retail price (e.g a game on Steam cannot be sold for 60$ retail, but be sold for 50$ on epic), not including deals and sales.
Its standard with how physical stores demand that digital copies of games must retail at the same price as physical else stores would see that as an attack on the business by the company.
There is essentially some level of price normalization.
Ton of public companies lose money...
As long as execs get paid, it is all good.
Yeah, that's it right there. Not being public means they don't have to appease shareholders who want maximum growth and returns.
I’m guessing this is a big part of it. A private company can do just about whatever they want as there are not shareholders that you are working for.
Private companies can have shareholders(all nfl teams but the Packers), its just a game of finding shareholders who doesnt care about constant short term profit.