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Ghost of Tsushima buyers of blocked countries will be reimbursed (programming.dev)

submitted 6 months ago by pro_grammer@programming.dev to c/steam@lemmy.ml

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[–] p03locke@lemmy.dbzer0.com 1 points 6 months ago (1 children)

Valve does good not because they don’t have shareholders, but because their leadership is not gonna get fired for thinking about next year instead of next quarter. So they don’t squeeze the consumers for every dime, so people stick with them, and developers stay even though their fee schedule is not the best because they have all the people.

All of that short-term thinking is because of the stock market. All of their shareholders think of, day in and day out, is "line go up".

[–] ricecake@sh.itjust.works 1 points 6 months ago (1 children)

Well, I'll disagree a bit there. The largest stock investors are institutional investors managing funds on behalf of retirement plans. Those investors tend to prefer consistent long term growth over a narrow quarterly growth target, and will actually look at things beyond just stock price, like strategy and long term market prospects.

Short term thinking from the leadership team is them not having a good idea on how to provide the long term strategy that investors prefer, and instead hoping to appeal to the smaller group of investors who do only care about short term growth so they can secure their own payoff, potentially at the expense of the long term prospects of the company.

Valve is a corporation. They have shareholders other than Gabe, many of whom are not employed at valve of in their leadership team. Their leadership team isn't looking to ensure that their paycheck comes in over the future of the company, so they make good choices.
Compare with companies like Coca-Cola, which are publicly traded but have that long term plan that lets them openly talk about sacrificing revenue to pursue product plans and market growth that leads to more stable long term profits.

[–] p03locke@lemmy.dbzer0.com 0 points 6 months ago

The largest stock investors are institutional investors managing funds on behalf of retirement plans. Those investors tend to prefer consistent long term growth over a narrow quarterly growth target, and will actually look at things beyond just stock price, like strategy and long term market prospects.

Based on what evidence? They just make sure the line steadily goes up each quarter, instead of accounting for companies that invest potential profits into longer-term plans. If not, the 401K investor will either drop the stock, or put it in a higher-risk plan.

That sort of thinking is akin to corporate suicide when in a publicly-traded market, so they don't do it.

A company like Valve isn't publicly-traded, and they have a limited number of investors they can talk to about their plans. That and they have a reputation of quality products, so even the investors are going to put up with short-term drops in profitability for even more profits.