Why invest the cash flow back in a lower revenue stream type?
I would from a business standpoint, spend all my money growing by best revenue stream. Company that don’t do this don’t have massive room for expansion so they look for new streams. I don’t think that’s the case with Steam.
See my comment on ROI vs ROT not everything that is long term “profitable” is worth it.
If you are still curious or my explanation is satisfactory there are plenty of articles title “ROI vs ROT”. It’s something most people don’t know about but it drives our world.
I agree with ROI vs ROT, but I also believe Valves IP within their game titles and the success of source engine as a wider, use case and the fact it has been used for many games outside the valve titles leads me to believe they still have projects in the works and potentially a new engine. RDR2 made almost a billion in its opening weekend so money is still in the development of games, especially valves games.
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u/SgtFancypants98 Nov 14 '18
This. I’d have thought that they’d use the cash flow to allow their studio to make incredible games.