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 :

Poll

How do you feel about microtransactions in $60 video games?:

Shout box

You're not permitted to post shouts.
Goth_SkunkMGSV: The Phantom Integrity - A Rant by RazörFist. (NSFW on account of language). RazörFist discusses the latest batch of unethical journalist conduct, with a caveat. - http://ow.ly/RwXYT08/29/2015 - 7:10am
Goth_Skunk@Brad: I can.08/29/2015 - 6:13am
Goth_SkunkI assume "Stacy" is a pseudonym. After reading what she went through, I would not be one bit surprised if it is.08/29/2015 - 6:13am
Goth_SkunkA Year of #GamerGate: From Neutral To Anti To Neutral To Pro by "Stacy" - http://ow.ly/RwVeT08/29/2015 - 6:12am
Brad GlasgowI can't believe Matt Lees deleted his positive review of Ethan Carter because Chmielarz is sympathetic to GG.08/29/2015 - 5:30am
Goth_SkunkA GameDev's Year With #GG: The Good, The Bad, and The Ugly by Adrian Chmielarz - http://ow.ly/RwSCd08/29/2015 - 5:18am
Goth_SkunkDespite not being a fan of fighting games I had to check out that R Mika trailer. Loved it. Still won't buy the game though, on account of Isuckatstreetfighteritis.08/29/2015 - 2:42am
MechaCrashI use a Dynex DX-840 headset, but it's discontinued. :( I wanted a mono headset so I could keep the other ear free for my speakers, but it has the bonus of being very light and comfortable, so you don't notice it.08/29/2015 - 12:41am
Big PermSora - I was just having a slow day at work earlier. Now I'm home with vidya!08/28/2015 - 7:54pm
ZippyDSMleeSora-Chan: Blender is easy compared to 3Dmax :P08/28/2015 - 6:51pm
Sora-Chantime to take up a hobby? maybe messing around in GIMP to make wallpapers? use qCAD to design somethin? open Blender and stare at it for a couple hours trying to figure what does what?08/28/2015 - 6:41pm
Big PermAlso, yes. I've been spamming the shoutbox. I don't have much going on today, don't judge me08/28/2015 - 3:25pm
Big PermThanks, but yeah. Not sure I wanna drop that kind of cash :P I don't even mind the sound quality of my krakens, it just hurts to wear em after a couple hours.08/28/2015 - 3:25pm
Sora-Chan@Big Perm: I'm a bit of a fan of the Omega Recon3D headset from SoundBlaster. Though it is a bit expensive.08/28/2015 - 2:36pm
Big PermI actually need to look into a new headset. I have those green razer krakens and I would not suggest them. Though maybe they're better for people without glasses08/28/2015 - 11:32am
Big PermI've never heard if Apple was dominant in Japan.08/28/2015 - 11:25am
E. Zachary KnightBeats by Dre? If music videos are anything to go by, they are the only headphones in existence.08/28/2015 - 11:21am
Big PermI wonder what kind of headphones she has08/28/2015 - 11:13am
Andrew EisenMy favorite fighter character/costume of late is Lucky Chloe from Tekken 7.08/28/2015 - 10:59am
Big PermYou might be right, Zippy08/28/2015 - 9:21am

Be Heard - Contact Your Politician