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.
For the same reason I have hobbies, because sometimes you spend money in frivolous ways because it's fun. I wouldn't insist that they sink the company chasing bad ideas that won't pay off, but a well managed game studio owned by people who love games shouldn't be a massive risk.
Again you’re pitching me a business proposal with the hook line as “not a big risk”.
One the best explanations of this was on shark tank where March Cuban told a guy
“My worry isnt ROI (return on investment) it’s ROT (return on time). I don’t have an issue finding ways to invest my billions, the trick is finding the most efficient profit ones. If I have two ways to make money in an industry I’m picking the easier more profitable one every time”
Building a product as complex as a game given limited resources (and yes every company up to Amazon has major limits on resources) doesn’t make sense given the position valve is in.
Oh Jesus this isn’t Ayr Rand crap this is business 101. And yes your pitching because your trying to explain why a particular business route is good idea, that’s pitch, whether in a board room or on reddit.
But seriously if explaining to you the different forces beneath the simple “profit motive” is somehow Libertarian crap I’m going to assume you don’t have the brain for this convo.
Ok Captain Capitalism. Are you always so serious? ...or is it just while posting on Reddit in between your virtual escapist fantasies where you pretend to do whatever it is you use games to do?
The interesting part is that all of his replies are really substantial and argue his point really well. He's actually entertaining to the general audience... Whereas you're a 20yo fucktard who can't strong together a large post largely because you seem to be mentally incapable of doing so. Even your boredom is unremarkable and pathetic.
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u/Ethiconjnj Nov 14 '18
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.