Revenue. Revenue is not profit.
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Correct. The article is discussing revenue.
The headline is misleading, it was worth mentioning.
I don't think it's misleading, "generating" implies gross profit, not net. It's not explicit, but it's also not misleading.
It's not misleading, you've just purposely ignored the meaning of the words to instead imply your own.
Then again, somehow I don’t expect Valve’s expenditures are that high, except download server costs.
I wonder if they're also getting paid more or does greedy Gabe just take it all to fund his mega yachts.
Did a little digging, apparently in a 2021 lawsuit, documents were released with bad redactions (they blacked out over the data, but the underlying information was still able to be highlighted and copied/pasted. Very common error when redacting PDFs)
I haven’t checked the data myself but according one user this was the breakdown:
“Total staff as of 2021: 336 people
Administration: 35 people making an average of 4.5 million a year
Game Developers: 181 people making an average of 1 million a year
Steam Developers: 79 people making an average of 960k a year
Hardware Developers: 41 people making average of 430k a year”
Normally I would guess that “average” here probably means a few people making a ton of money while others get shafted. But I think “admin” probably accounts for that. We have no official way of knowing the true breakdown since this info is not supposed to be public
This actually seems like not a terrible spread. The average for the top earners is a little more than 10x the average for the lowest earners... Obviously outliers could be skewing that data (there could be one hardware developer making 30 million while the others work for poverty wages) but from the data we have, this isn't nearly as wide a gap as I would have expected.
Wouldn't surprise that much, as far as I've heard from as far as I remember Valve is a great place to work and by all accounts treat their employees well.
Valve moved into hardware long after its other ventures, so it's not surprising the hardware devs make less -- they're newer. Still, $430k/yr is an enviable salary...
This was from 2021, so prior to the Steam Deck... that was really their break-out moment, I think, with regards to hardware. The Steam Link and Steam Controller were neat but didn't really capture their respective markets, and the Index was widely considered one of the best VR headsets on the market but that's a relatively small market, and it priced out all but the enthusiast tier consumers. The Steam Deck on the other hand had mass appeal and basically ushered in a golden age of handheld PC gaming... not to mention the immense hype around their recent hardware announcements. Could be that their hardware team is making more now.
What does administration mean there? Like accounting, human resources and so? How could they make, in average, way more that developers??
I'd think it's marketing teams, HR, managers, the C-suite.
Those who manage people usually make more than those who dos tuff because they take on more responsibilities.
Yeah I know that's bullshit and that they shift responsibilities all the time, but good managers do shoulder bullshit so workers can work.
The C-suite being included there made sense of that disparity.
I mean yeah and no. I manage a team, I make 10%-12% more than the team even though technically we do the same tasks. The difference is I need to know their job, but also manage a schedule, and allocate resources, while planning sales for the future stream so they don't run out of work. It's a different skillset on top of the team skill requirement.
Not justifying a C suite at 20 million over dudes making 60k though
A highschool friends dad worked at Valve and they'd take the entire company and their families to Hawaii every year.
Seemed like a good place to work.
Would make him the first billionaire in history to pay his workers their worth, so.... Not a fucking chance.
No no Gabe just works 31.244.670 times as much as his employees.
capitalism gonna capitalism, man. you know the answer.
Not hard, if you don't have 20k employees.
That tends to happen when you have a monopoly on an industry where you get 30% of the revenue from other people's hard work.
Remind me again which game developer had to release their game on Steam? Or which publisher had no choice but to market on the platform? And are you the sole user forced to use Steam, or was that someone else...?
If I want my game to sell I have to release on Steam, though.
Interesting that first part... Respectfully, no one is entitled to sales on any platform. As a consumer, I've tried other launchers and stores. I hate them all. I choose to only use Steam (for the time being). It's simply choosing the superior option, but it is an option. I can't say the same for my internet, energy, or cable companies...
It would really help if the would-be competitors focused on consumer-facing features rather than... whatever it is they're doing. GoG is doing a great job of this, but EGS is still missing even the most basic features years later, because they keep trying to get market share through buying exclusives and giving away free games and that's sadly never going to work out. They just don't understand what the consumers in the industry they're trying to operate in want.
I know! There's this great game called Fortnite that no one has ever heard of because you can't get it on Steam. /s
You can sell your game on Steam, in addition to other platforms as well.
Doesn't make it less of a monopoly.
I think the difference here is that Valve isn't forcing a monopoly in the way our tech overlords like Google and Amazon do through acquisitions and regulatory capture.
Several companies have tried and mostly failed to compete with Steam, I'm primarily thinking of whatever the EA and Ubisoft launchers are. The two closest have been GOG whom I would argue is fairly successful considering what their goals are and Epic, whom I would say is much less so.
This is the key point people are missing.
Valve arent paying for exclusives or anything, they are just delivering a far better product than anyone else. GOG has it's DRM-free market, but outside of that, there's nothing close. Even if Epic Games had feature parity, fuck that company.
Technically Steam isn't a monopoly by actual definition.
What you, and others often mean with the term, is that they hold a majority market position.
Not to mention the companies that have legal decisions declaring they are a monopoly when they are only 80%+ of a market are in the context of those companies (Microsoft, google) behaving in an anticompetitive way using their majority market position.
So not technically a monopoly and not comparable to legally declared monopolies.
All of them.
Yeah, why do you buy things if you're against capitalism? Checkmate.
Go do your own game shop with the feature set of steam.
We have seen how well that was executed with Epic.
I wouldnt even call the GOG implementation bad but it obviously lacks the PR in comparison (+ games like CP2077 are also available on Steam)
Mono=one poly=seller... and last I checked Steam is not the only seller of video games. They aren't even the only seller of digital video games. They aren't even the only seller of digital video games for SteamOS.
They are the largest because they do what's right by their customers and employees. As a 'for instance', I bought Portal 2 for the PS3 many years ago. I no longer have my PS3 but I can still play Portal 2 (as well as Portal which was just thrown in for me) on any PC.
Technically Steam is not a monopoly, but the way people commonly use the term these days is as simple as "majority market share".
Treat customers right and you get rewarded. They are the majority market shareholder because they have earned it, not through deceptive business practices but through being a great company.
If they were a monopoly they wouldn't allow other game catalogs on their systems, yet I have GOG and Epic on my Steam Deck. In fact, there isn't even a requirement for me to have Steam on my Steam Deck. Just because a company is the market leader doesn't mean they got there through unethical means.
Do they have any kind of profit sharing program?
I'd be kind of pissed if I worked there and made like $70k or whatever, only to read this shit.
Their lowest paid employees still very likely make 6 figures. Valve has historically taken very good care of their employees.