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)
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.
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.
Since it’s a private company he can just appoint anyone he wants to be the ceo. Maybe his son will take it or maybe he will maintain ownership of it until I’m too old to care.
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.
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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.
Yup. And the moment he steps down (or gets hit by the greed) everything will go to shit. As is tradition.
Since it’s a private company he can just appoint anyone he wants to be the ceo. Maybe his son will take it or maybe he will maintain ownership of it until I’m too old to care.
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That’s good to know.
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Our system of government makes this illegal for publicly traded companies.
Valve is not publicly traded.
Whose system of government? If you mean the USA, then no, it does not.
https://www.nytimes.com/roomfordebate/2015/04/16/what-are-corporations-obligations-to-shareholders/corporations-dont-have-to-maximize-profits
https://www.washingtonpost.com/opinions/harold-meyerson-the-myth-of-maximizing-shareholder-value/2014/02/11/00cdfb14-9336-11e3-84e1-27626c5ef5fb_story.html
https://corpgov.law.harvard.edu/2012/06/26/the-shareholder-value-myth/
It helps that they aren’t struggling to keep the lights on.
You can’t really do what you want if youre constantly worried if you can pay bills. Same for people, same for companies.