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?

---------------------------------------------------------------------------

"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

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
ZippyDSMleeShout box sttasahhppppp!!05/22/2015 - 10:47am
Andrew EisenOh, here it is. I thought it was gone. Yeah, I'm experiencing the same issue. Sent a note to tech.05/22/2015 - 10:43am
E. Zachary KnightAnyone else have the shout box pushed down to the bottom of the site?05/22/2015 - 10:38am
MattsworknameAndrew and EZK help me pull back a bit , still working on it05/22/2015 - 7:06am
ConsterI think IP is the only person here who doesn't think IP needs to dial it back several levels.05/22/2015 - 6:14am
Mattsworknamehttp://www.foxnews.com/politics/2015/05/22/fec-backs-off-flirtation-with-regulating-internet/05/22/2015 - 1:34am
MattsworknameWell, on another subject, Saw this, and while I know it's fox news, thuoght I should share it05/22/2015 - 1:34am
MechaCrashYeah, even I think IP needs to dial it back.05/22/2015 - 12:35am
Mattsworknamesays05/21/2015 - 11:17pm
MattsworknameRE doc, everyone has a tendancy to let emotion get ahead of them, especially in an annoymous forum like the web. We have have those moments. Ip however has nothing but those moments. it's why I stopped responding to him, regardless of what he thinks or05/21/2015 - 11:17pm
DocMelonheadNo offense, but I see your behaviors in the comment sections uncalled for.05/21/2015 - 8:51pm
DocMelonheadHell, I could use both Goth_Skunk and IronPatriot as an example of such behavior between the two.05/21/2015 - 8:43pm
Andrew EisenMock? Ridicule? No, we're talking about serious threats and abuse, not people being cheeky or mean. Big difference.05/21/2015 - 8:42pm
DocMelonheadIn fact I see both mocks and ridicule between both the GamerGate Supporters and GamerGate Critics.05/21/2015 - 8:41pm
DocMelonheadAs for the Harassment, well, this is the internet; people will mock and ridicule whoever they want, whenever they want, at all times.05/21/2015 - 8:40pm
Mattsworknamegoth I think all media news outlets have that disclaimer05/21/2015 - 8:39pm
Andrew EisenThat's an... interesting way to interpret that.05/21/2015 - 8:36pm
Goth_SkunkAnd re BBC vs Rockstar: Ahh. I missed that. Woops!05/21/2015 - 8:33pm
Goth_SkunkAE: The entire disclaimer is a valid reason why I don't take it seriously. Particularly the part where they say "the information contained herein may not be necessarily accurate or current." Because fact-checking, like math, is haaaaaaaaard!05/21/2015 - 8:32pm
MattsworknameI take all media reporting with huge skepticism. the Mary sue Included. that said, there not as bad Jezebel.05/21/2015 - 8:27pm
 

Be Heard - Contact Your Politician