Valve Software’s philosophy on becoming a publicly traded company

September 3, 2010 -

In the latest issue of PC Gamer UK, Valve' s Erik Johnson and founder Gabe Newell explain why the company never went public. The key reasoning for not doing it, the duo said, is because it changes your customers. But the logical reason is that the creative process tends to get hijacked - or at the very least, heavily influenced - by the people that hold the most financial interest in a company.

The other reason, which neither talk about, is that Valve as a company decides where all that money goes; besides funding new projects, the company has the luxury of spending that hard earned cash on creative ideas, long-term support for products and investment into the most important aspect of a high profile development studio: the developers. Here's what both had to say about the subject - first Erik Johnson:

All [companies that float] end up getting their customers changed," Valve's Erik Johnson told the latest issue of PC Gamer.

"Any bad decision I ever see out there is because somebody created this different customer that was whoever funds them, and not the consumer of the product."

Gabe Newell added this little gem:

"You end up with a totally different set of decisions, and the person who's trying to design the experience is like' Okay, I guess we'll put Christopher Walken in our game."

Oh, and the final reason the company is not publicly traded? It doesn't really need the money - it makes plenty without the help of external investors.

Source: C&VG


Comments

Re: Valve Software’s philosophy on becoming a publicly ...

Outside making initial investors rich, I rarely see going public actually help a company, esp now that day trading and other 'short term investing' have become the dominant form.

Re: Valve Software’s philosophy on becoming a publicly ...

Ummm.... Maybe I missed the boat here, but dont the current people with the most financial interest heavily influence the creative process?

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"The most difficult pain a man can suffer is to have knowledge of much and power over little" - Herodotus

--------------------------------------------------------------------------- "The most difficult pain a man can suffer is to have knowledge of much and power over little" - Herodotus

Re: Valve Software’s philosophy on becoming a publicly ...

Yes, but those people are Valve themselves, not some random investors who know nothing about games.

Re: Valve Software’s philosophy on becoming a publicly ...

"You end up with a totally different set of decisions, and the person who's trying to design the experience is like' Okay, I guess we'll put Christopher Walken in our game."

But that's how we get classic moments like this:

http://www.youtube.com/watch?v=dFKylgGk73I

 
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InfophileFor reference, see https://en.wiktionary.org/wiki/accountable - It just means you have to answer for it. It has nothing to do with being punished for it.07/30/2015 - 1:47am
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MattsworknameSo to speak07/29/2015 - 11:28pm
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Mattsworknamefalse. Weather you think the article was right or not, there was a large group who felt taht gamastura and the other media sites had to pay for there actions, weather they deserved it or not07/29/2015 - 11:27pm
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Andrew EisenDude, you're comparing an opinion piece with someone who was shot to death. Gamasutra and Alexander already were accountable for the opinion piece in question.07/29/2015 - 11:25pm
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MattsworknameAndrew: It's really a matter of context for the people involved. For example. The "Black lives matter" thing is based on an entirely false account of events in the brown shooting, but that hasnt' stopped it from triyng to hold Polititcians accountable for07/29/2015 - 11:22pm
Andrew EisenWouldn't surprise me. A lot of words' actual meanings escape many people on the internet.07/29/2015 - 11:17pm
 

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