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Gabe Newell on Valve's business model

96 pointsby tanokuabout 14 years ago

15 comments

corin_about 14 years ago
What I love about Valve is how little bullshit comes out of there.<p>Gabe's talking about how much everyone loves working at Valve, and what a great environment it is, and with so many companies you'd know that was just spin for the interview. Having involved Valve in a few things I've done in the past, their staff really are loving their jobs, and everyone I've dealt with there, from support technicians up to executives, just lets that fact leak out of them, all the time. It even makes it enjoyable to work with them.
jpadvoabout 14 years ago
"But, seriously, if fifty awesome people knocked on the door, we’d hire them all. We don’t hire to specific positions, we hire to standards."<p>This is how Andrew Carnegie ran his companies. He didn't hire when he needed employees, he hired when he found someone worth hiring. And then he would find them a job to do.<p>It's interesting to see this particular hiring strategy applied in companies with such extraordinarily different structures otherwise.
skizmabout 14 years ago
From the article: "So, in practice, a really likable person in our community should get Dota 2 for free, because of past behavior in Team Fortress 2. Now, a real jerk that annoys everyone, they can still play, but a game is full price and they have to pay an extra hundred dollars if they want voice."<p>Wow, if this gets successfully implemented I can't wait! Especially the part about a jerk having to pay an extra hundred bucks for voice! haha
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aaronbrethorstabout 14 years ago
<i>We constantly ask ourselves the question, how can we make our fans happy every day, and what are the different ways we can do that.</i><p>Ship Half-Life 2 Episode 3 already, that's how!<p>edit: pstack makes an excellent point. Instead, perhaps I should say "Ship something with 'Half-Life' and '3' in the title already, that's how!" :)
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ender7about 14 years ago
One the most impressive aspects to this interview is Gabe's lack of dogmatic prognostication. They're not into something because "mobile is the future" or "the PC is dead" or "social gaming is taking over the world." They're looking into things because they seem like a good idea, but it's clear that they're equally open to discovering that they weren't that great an idea after all.<p>That last part - a form of idea edit and review - is something that I see a lot of companies lose very quickly. They get so caught up in what they think they <i>should</i> be doing (or how they define themselves, e.g. "we are a social media company") that they lose the ability to let go of ideas that just don't work, even when it seems like they should. Apple is really good at this. For every product that Apple actually announces, there are hundreds that never make it off the ground. The iPad idea had been floating around Apple for <i>years</i>, but it wasn't approved until mobile technology had come far enough to make it actually a practical idea, not just a good idea.<p>There's a saying that behind every great poet is a great editor. I suggest that behind every great tech company is (at least one) great idea editor.
orlsabout 14 years ago
Valve consistently anger or frustrate their core fanbase (e.g. the hot-air boycott over Left 4 Dead 2, the almost decade-long whining about Counterstrike game mechanics, and of course the frustration over HL3 / HL2:ep3).<p>But the fans never seem to leave, and their zealousness and numbers only ever grow. Even with the historically poor SDK support and release cycle, there's still has a solid, active modding community even as the Source engine starts to look a little tired.<p>And at the same time they're pioneering digital game publishing and distribution, providing really interesting services <i>to their competitors</i> (Steamworks), pushing the frontiers of their core game niches, and are astoundingly profitable.<p>That's an amazing example to aspire to.
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windsurferabout 14 years ago
Every time I read or hear more about the internals of Valve, I want to be their employee more and more.
thebigredjayabout 14 years ago
That sounds like a really great place to work and a good guy to work for.
drawkboxabout 14 years ago
Any place that has stuff like 'Valve Time' : <a href="http://developer.valvesoftware.com/wiki/Valve_Time" rel="nofollow">http://developer.valvesoftware.com/wiki/Valve_Time</a> posted in the same public wiki as 'Lag Compensation': <a href="http://developer.valvesoftware.com/wiki/Source_Multiplayer_Networking#Lag_compensation" rel="nofollow">http://developer.valvesoftware.com/wiki/Source_Multiplayer_N...</a> seems like a good culture mix.
tobylaneabout 14 years ago
They care, we win. There are some losing edge cases, the lack of Source SDK on Mac is the only thing I would use Windows for. There are so many content producers on Macs, so much could be done with a cross platform SDK (plus we'd get another 20 free games).
FrojoSabout 14 years ago
Really great interview! Thanks for posting this. I love how he seems to care about his employees health. Taking everyone and their family to Hawaii once a year sounds not just great but smart also.<p>Do they really pay some gamers 20k per week? I haven't played online games in years but my first thought was "This can't work for Valve. How can a gamer produce so much value for the community in a FPS." But then again, people were making tons of many back in the days of UO and Diablo II by selling virtual items. So, these people already provided a value for hard money, too.
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Ntaggabout 14 years ago
I love the concept of different monetezation strategies for different types of players. That's a game-changer (pun!). Love to watch how it's executed.
pstackabout 14 years ago
I was beginning to think Valve's business model was to <i>never ever get around to releasing the next Half Life</i>. :)
knodiabout 14 years ago
"how can we make our fans happy every day..."<p>Don't fuck with me Gabe put out HL2 Episode 3 already!!
zbowlingabout 14 years ago
TLDR; I'm just going to assume that hats in TF2 makes up 90% of their profit.