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Valve is a "hit business" meaning that they need to produce hits to be profitable. In the short run they have been successful, but over the long run, they may run in to problems and if it does, this business model will look foolish (rightly or wrongly).

The reason, I and others on HN don't like BigCo, is because we feel stifled, but that doesn't mean that it isn't the most efficient business model.



Valve has moved quite far beyond "hit business". Consider how much commerce happens on Steam, and what their cut of that action is. They're really more of a distribution service with a sideline in game development to keep honest.

Also, re: BigCo--that also doesn't mean that it is the most efficient business model.


Sorry, I was ignorent about their distribution service. I completely forgot they did that.

Thanks for the correction.


No worries! :)


Valve is by no means in the "hit business" anymore. They moved on and provide service and content. From the stereotypical hat in games to deliver content from other creators. Not just other developers but players that create content. Parden my language, but srsly, in the long run? What the heck? Steam is now running since ~2004 while being a provider since 2005/6? That are six years of being successful and there is no sign of steam dying anytime soon. "In the long run", like what, 20 years?




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