this post was submitted on 15 Sep 2023
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What is it with tech companies being too shitty lately?
The Venture Capital Well is running dry, tech companies are turtling up their data so other tech companies dont use AI to scrape all their content... its the 12th hour of the tech bubble and they're all scrambling to become real companies that make, you know, money. Problem is they dont know how, and customers dont want to pay them for the garbage they used to tolerate when it was free.
The lack of "easy money". A lot of companies have had accelerated growth due to an influx of investments which were mostly interest-free (or very low interest) loans . You didn't have to have a good product - just overinflate your value till your IPO, then the value will determine stock price, everyone gets rich.
Now that interest rates are higher, investors want a lot more bang for their buck. Couple this with companies that no longer know how to make good products, now they're just squeezing shit dry and scheming and scamming their customers to fulfill their one and only legal obligation: make more money for the shareholders.
If I could be certain this is true, I'd be optimistic.
It would mean (because of some things being more profitable than other) that after long labor pains (involving legal battles and IP laws changing for patents and anti-monopoly laws changing back to working state) these companies were going to die and the better ones were going to take their place.
The problem is that the kind of people that run these types of companies will first see the world burnt to ashes before losing profits and power.
So yes, they will fall, but they'll be taking us down with them.
Capitalism. While the average person is frustrated over their grocery bills being 2x, the corporate ghouls are trying to milk as much money as they can. Not to mention I believe they pulled out their shares before the decision was made so it seems like they were trying to just cash out before shit hit the fan.
Everything is being run on borrowed money, even major studios like Marvel or Blizzard take injections and answer to share holders / venture capital, instead of just making a better product.
Like I answered in another comment, this would be wonderful, as this would mean that they are going to crash hard. Better a horrible end than horror without end. I mean, every magnificent era of development started with a frustrating crisis of this kind. So let it go boom, I don't care that much about any of the big tech around. Well, Sun was nice, but it's dead.
Greed and societal acceptance of greed.
And interest rates doing an uh oh and they can't think of any more innovative a solution than to soak their paying customers
Not just acceptance. There has been a worship of the greediest people as the most "successful" and those who are "worth" the most.
Enshitification
IDK, but a lot of tech stock got a massive boost during Covid, then when that was over, and we instead got war in Ukraine, there has been a bit of a slowdown. So maybe they think the progress they had should continue, even if the economy doesn't justify it.
The Ukraine stuff has nothing to do with it.
It's the feds attempts to wrangle inflation (caused by dumping trillions into the economy during COVID)by hiking interest rates. Companies with barely profitable or even unprofitable business models used to be able to borrow money at stupid cheap interest rates. Now that it's 7-8% they realize they have to figure something out.
It was this silicon valley "trade profits for scale and then we'll figure it out later" approach. That only works when cheap loans could float you until you hit scale or figured something out.
But in Unity's case I think it's partially that (they aren't profitable), but partially related to the stuff apple is releasing and doing lately.
I think unity is trying to get in front of a possible boom in Mac and apple gaming. Charge dev $.20 per install so you insure you get a piece of every game install and avoid a confrontation with Apple about app store rates.
Sounds like a nice plan if you are playing a video game with hundreds more attempts before you.
IRL it's "was trying". Now they sure as hell won't.