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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Have you visited a video game arcade in the last year?:

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MechaTama31I sure have. Dorky's barcade in Tacoma, WA.08/20/2014 - 5:56pm
Matthew WilsonI have not been to a arcade in years. I know arcades are still big in japan.08/20/2014 - 5:38pm
Sleaker@AE - Ah no it's called GroundKontrol - I was just referring to it as a Bar-Arcade.08/20/2014 - 4:39pm
Andrew EisenStill looking for confirmation that High Moon Studios (dev behind the PS3/360 versions) isn't working on it.08/20/2014 - 4:38pm
ZenGotcha.08/20/2014 - 4:37pm
Andrew EisenI already updated the story with it!08/20/2014 - 4:36pm
Zenhttp://www.gonintendo.com/s/235574-treyarch-isn-t-working-call-of-duty-advanced-warfare-for-wii-u-either08/20/2014 - 4:36pm
ZenLet me send the link for the Tweet as well...they state Treyarch is not working on it. Grabbing it now.08/20/2014 - 4:34pm
Andrew EisenWhere does it say that "NO dev is working on it"?08/20/2014 - 4:33pm
ZenHere's the link for my last comment: http://www.ign.com/articles/2014/08/20/call-of-duty-advanced-warfare-not-coming-to-wii-u08/20/2014 - 4:24pm
ZenWell, Call of Duty is skipping Wii U completely it seems...they updated that NO dev is working on it. Great way to just skip a market.08/20/2014 - 4:24pm
Andrew EisenYeah, Dave and Busters back in 2011 was the last time for me.08/20/2014 - 4:16pm
ZenWell, I tried lol. We just got a Dave and Busters on the beach but haven't been there yet...may go this weekend.08/20/2014 - 3:52pm
Andrew EisenIt's called The Bar-Arcade? Missed opportunity. I would have gone with Barcade.08/20/2014 - 3:25pm
SleakerThe Bar-Arcade however did have a lot of good pinball machines, they were however always taken as the place was packed..08/20/2014 - 1:17pm
Sleakerso I've been to an Arcade-Bar, not that great of a place has some okay machines, but generally over-packed. And then all the kid-friendly ones have is ticket-games nothing actually good unfortunately :(08/20/2014 - 1:14pm
Andrew EisenIf it has an area dedicated to arcade machines, I'd say it counts. Arcade machine in your house though, nope.08/20/2014 - 12:16pm
ZenDoes it count if you have actual arcade machines in your house?08/20/2014 - 12:01pm
E. Zachary KnightWith the current poll, I guess it all depends on how one defines "arcade". If Chuck E Cheese or similar multipurpose businesses count, then that is a yes for me.08/20/2014 - 11:59am
ZenLet the ax fall Sleaker...lessons MUST be learned...08/20/2014 - 11:44am
 

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