"If you have the patience to sit by the river and wait, eventually, the corpses of your enemies will float by." Sun Tzu
this post was submitted on 14 Feb 2025
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You know sometimes I actually straight up FORGET that Steam is run by the same company that created Half-Life?
They:
- identified a gradient of human wants
(Video games exist; I want them on my computer) - Created a vector for that want to be satisfied
(Digital distribution that conveys the games I want to my computer) - Stayed the FUCK OUT OF THE WAY
When you do something well, people don't notice you've done anything at all.
I think the key was that Steam wasn't created to make money, but to solve problems they themselves had, like "How do we get new versions of Counter Strike out to all these players?"
Then as Valve wasn't the only company having these problems, the solution could easily be sold to others.
If the other companies really wanted to crack Steam's near-monopoly, the solution would be to tackle the problems associated with not having all your games on Steam. Work together on a open-source launcher supporting all stores, similar to GOG Galaxy. First make something useful that tackles an unsolved problem, then you can make money off it when it becomes successful.
Instead they go in just trying to make a buck, and end up just being worse versions of Steam.
That ended up being a bit of a rant, but I'm frustrated at their shortsighted market strategies :p
Oh indeed! And that's why I love GOG! I actually try to check GOG first just in case I can buy a game I want there before I go through with buying it on steam. I would actually gladly pay MORE for the GOG version because it removes bullshit like DRM!
They simply did what everyone else refused to do, get out of their own way.
His plan isn't based off trying to squeeze blood from stones, it's to sell some video games. Not a very capitalist mindset, but there you have it.
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Honestly, the secret is not being a publicly traded company. All the others have to make the shareholders happy while steam just does steam. If the line doesn't have to constantly go up you can pretty much do whatever you want as long as you're still making profit. And if what you're doing is already working you don't need to add gimmicks or advertisements to milk it as much as you can just to appease the shareholders.
Being a private company has allowed Valve to take some really big swings. Steam Deck is paying off handsomely, but it came after the relative failure of the Steam Controller, Steam Link and Steam Machines. With their software business stable, they can allow themselves to take big risks on the hardware side, learn what does and doesn't work, then try again. At a publically traded company, CEO Gabe Newell probably gets forced out long before they get to the Steam Deck.
Man Intel are so dumb for firing Pat. And they did it while seeing positive reviews for their second gen GPUs!
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And also not be backed by venture capital firms expecting to make infinite profits. Private or Public, if the company shareholder's only goal is to continue to receive 10% gains on their investment after already making back 20x their principal, they'll squeeze the company for all it's worth.
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The "do nothing and win" strategy.
Does nothing? DOES NOTHING?! He spent the last few years ripping Microsoft a new a@@hole, rendering their operating system meaningless for gamers! ..but nice meme
Gaben has done lots of awesome shit. I fear what valve will become when he's gone.
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Fun fact many don't know, Gabe helped create the first versions of Windows and claims he learned more at Microsoft than he ever did elsewhere (at the time). So in a way, he's transcended Windows, vs ripping it apart.
Don't ask TF2 player how they feel about this meme
TF2 released in 2007
I mean it's true for TF2 also, overwatch killed itself lol
They did the bare minimum of banning bots so TF2 has been going pretty great recently. I think I've encountered 1 or 2 bots in the last 2 weeks and I'm pretty sure those were just blatant cheaters and not actually bots
I have a mixed feeling about Gabe and Valve.
While I am insanely grateful for proton (even if it was strategically important for them, they didn't do it out of kindness of heart), some other stuff disturb me:
- Valve being so lenient on CS2 skin gambling, hurting the young people
- A steam account being un-inheritable, making you defacto a tenant of your games
- The 30% percent cut, stealing money from devs
- Gabe spending his money on multiple mega yachts, like every asshole billionaire, instead of making the world a better place
- Gabe claiming to be a libertarian, like Elon and other pieces of shit
- The 30% percent cut, stealing money from devs
Sigh. Here we go again. I'll just copy one of my older comments about that attitude.
Steam is not a parasitic middle man, it is a collection of services that would have to be provisioned and operated by the developer otherwise. The 30% cut pays for:
- A massive infrastructure to store and deliver the game and its updates, worldwide, and at an acceptable bandwidth that Valve operates
- A storefront that enables monetizing the game
- The audience and discoverability that would not exist otherwise
- The Steam API, achievements, cloud saves
- The client itself, content management, validation, and Linux compatibility tools
- Network and operational security
- Also keep in mind that Steam and its services are operated by experts. A game developer would have to hire the experts or get training.
If the revenue from the cut exceeds the operational costs: it's called profitability, not theft. The world doesn't run on good vibes.
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The 30% percent cut, stealing money from devs
This is a pretty spicy take. Let's consider two possibilities:
-
Game devs choose to distribute independently, and sell their game for $20. They sell 100,000 copies and make $2 million in revenue, and keep the entire $2 million.
-
Game devs choose to distribute via Steam, promote it with a 50% off sale, it goes to the Steam front page, sells 500,000 copies at only $10 each, for a total $5 million in revenue. Steam takes $1.5 million and the devs take $3.5 million.
In scenario 2 the devs make 75% more than in scenario 1. Did Valve steal from the game devs?
Obviously Valve and the developer collaborated to steal money from the consumers who wouldn't have bought the game without the promotion.
to make sure: /s
I love Valve for a lot of things but I'll never forget that they spearheaded some of the most predatory microtransactions in the industry (loot boxes and battle passes) and were happy to help Bethesda try to sell mods until players raised a huge stink.
A steam account being un-inheritable, making you defacto a tenant of your games
Canβt you just give your kids your steam password ? How would they notice ?
Yes you can workaround it. But this is still a society right they forbid you. And who can say that in 2100 they won't implement a cleanup job that lock all accounts that are over 100 years old ? π€ͺ
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Just my two cents but as others have said, not being publically traded helps a lot. The focus on short term benefits that come with shareholders stops "master plans" when they come with mistakes. Learning from relative failures, like the steam controller and the like, ultimately contributes to major successes like the steam deck. Being able to stay committed to improving the software experience over time, instead of killing the product when it didn't immediately succeed, is fairly rare in the tech industry. And in all honesty, it would be better if they released a polished profuct, but being committed to it made it a success.
I feel like the pressure to have a majorly successful product day one means that smaller companies can't innovate the way they want to, so they have to find other ways to produce revenue. Huge companies, like Apple can afford to do both but still stumble, like with the vision pro. Maybe it'll be a success, but for now its not great and iteration makes it more difficult to maintain the original vision.
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Private company with long-term strategy VS public company chasing short-term profits to pump stock prices for shareholders.
That's the primary reason I abhor the stock market. It no longer works for the creator/owner or the customers at all. It simply feeds the greed of the wealthy (special call-out to private equity here).
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Wu wei is a polymorphic, ancient Chinese concept expressing an ideal practice of "inaction", "inexertion" or "effortless action",[a][1][2] as a state of personal harmony and free-flowing, spontaneous creative manifestation.
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"Don't interrupt your enemy when he's making a mistake."
Iβm not quite sure they have βdone nothingβ. They have made a digital storefront that other storefronts strive for, they have help with Linux compatibility with windows only games, have released a few bits of awesome hardware every now and then. I think this is what happens when you are not beholden to shareholders and the mantra βmake line go up at all costsβ
I can't really get my head around why people dislike Gabe Newell. As best I can tell, he's been a fantastic steward for Steam.
Some people hate all rich people regardless of what they have gotten due to their work.
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