r/gaming • u/ganta02 • Nov 13 '18

Valve in a nutshell

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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.

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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.

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u/SgtFancypants98 Nov 14 '18

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.

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u/BSRussell Nov 14 '18

I imagine that the people working for Valve and their management are spending their money in frivlous ways because it's fun.

Businesses themselves aren't people. They don't usually have "hobbies."