A lot of guys like EA want to take the shortcut to easy money. EA even tried to compete with Steam, remember. They had their “Origin” client. They gave away free games for over a year and still nobody would use it. The hope was to give them something comparable to Valve’s firehose of money. An easy profit stream where they could get a cut of every game sold on PC just by the simple fact they existed.
Rather than just do good work, they hoped to pry people off of Steam with the promise of regular freebies… except it was a client nobody wanted to use and in a lot of cases actively hated. It lacked most of the features of Steam, was a little bloated, and came at a time where EA was starting to push increasingly aggressive DRM that limited how many “activations” you were allowed per-game. So, it struggled.
The same thing happened with Uplay. Ubisoft thought they could make their own Steam, but the greed was too evident and annoying. It was a hassle to work with, added nothing of real value, and nobody wanted to use it. So most people didn’t, unless they were forced to use it.
That’s the thing with these corporations, right? Nothing is ever enough. They can’t just sell well on Steam, they have to make their own platform so they can have all the money. And the profit lines must not only always go up, it has to go up faster. More and faster and more and faster and more and faster until the wheels come off and everything breaks.
Then these board of director weirdos, now among the richest 5% of people on earth, pull the ripcord and parachute over to the next corporation and start over. All the money, more and faster and more and faster…
What separates Valve is that Valve never seems to have treated it like much of a race. Like, sure, they do things to boost sales but they seem pretty comfortable being themselves and not cranking all the dials until they break off.
Some of that is arguably down to the fact that Valve never became a publicly traded company. Once you get listed on the stock market, investors enter the picture, and the whole dynamic of how a company exists changes. Publicly traded companies rely on investors for some amount of operating costs, and the highest ranking investors can even legally control some part of your company as if they were employed there.
But there’s never any guarantee that an investor knows what is good for your company. They just gave you a lot of money and expect you to pay it back at some point (by increasing shareholder value). And its created this culture of people who race to maximize everything at the expense of the structural integrity of the company and its employees. It’s like the end of Back to the Future 3, right, where they need to get this old 1800’s locomotive up to 88mph.
Feeding it that much fuel, getting the heat up that high, it builds up extreme pressure in the boiler and the train will eventually explode. Except for a lot of these business types, exploding the boiler is the point. Exploding the boiler is a successful operation. Like I said: more and faster and more and faster, right?
Some companies need investor money to survive. But… not all do. Many of them still go public anyway, because the race to explode the boiler matters more than just being comfortable. We’re still in the era of people starting companies just to sell them.
Valve got lucky. They established an emerging market, gave people exactly what they wanted, and became the defacto home for PC gaming. Steam was such a comfortable, welcoming platform that nobody even thought about competing with them until they had already gained too much momentum to ever be slowed down.
And the only reasons most people can come up with to compete with Valve is “We want more money.” Valve wants 30% of my earnings? A whole 30%??? Unreasonable! I’ll start my own storefront! With blackjack! And etc.!
But really, that’s all this is. Valve did good work and got themselves into a position where they now can’t really be out-spent into obsolescence. I mean, Epic Games is currently trying to do that, and they’re burning something in the realm of $275,000,000 a year (according to this website I am unfamiliar with and have never read before today). By Epic’s own statistics, most people registered to the EGS client spend less than a dollar on the platform (723m users apparently spent $820m). Valve has so much momentum with Steam that they can (and often do) just coast, granting them a reputation for taking a very long time fine-tuning most of their products until they are perfect. Gabe Newell is so rich he owns and operates multiple fully-staffed private yachts. Not by more and faster, but by getting to the race track before anyone even knew it was open and just doing the job so consistently they are now ten laps ahead.
To compare with what happened with Netflix, which also established an emerging market: Netflix also didn’t want to just coast. Movie disc rentals by mail became streaming movies. That turned into streaming TV. That turned into Netflix wanting to make their own original content so they wouldn’t have to pay to license anyone else’s movies. That turned into Netflix wanting to offer games. And lest we forget, the founder of Netflix specifically has a vendetta against theatrical movies and continues to deliberately erode that market. There is no “coasting” for Netflix. There is only more and faster. Netflix put out 17 original films in 2016. Last year, 2023, Netflix put out 153 original films, 49 original documentaries, 11 TV specials, 11 short films, 28 stand-up comedy shows, and at least 26 new original TV shows. The aim is not to maintain a good platform, the aim is to dominate and make all the money there is to make in multiple industries. The line must always goes up until the boiler explodes.
Anyone could just do what Valve did, but nobody wants to because it’s too slow and takes too much actual work (and luck) making genuinely good products. It also theoretically leads to a “dead end” where growth slows or even stops. That means the line doesn’t go up anymore, it just levels out and stays there. Outrageous! You mean the man who owns a fleet of yachts doesn’t want make infinitely more money forever? The nerve of some people. It’s easier to crack the whip on someone else and crank up the heat until the boiler explodes. Especially when that’s what all the competition is doing, too.
