"If you have the patience to sit by the river and wait, eventually, the corpses of your enemies will float by." Sun Tzu
The "do nothing and win" strategy.
It's called making a product/service for their customers instead of for the shareholders bank balance.
Honestly, the secret is not being a publicly traded company. All the others have to make the shareholders happy while steam just does steam. If the line doesn't have to constantly go up you can pretty much do whatever you want as long as you're still making profit. And if what you're doing is already working you don't need to add gimmicks or advertisements to milk it as much as you can just to appease the shareholders.
Just my two cents but as others have said, not being publically traded helps a lot. The focus on short term benefits that come with shareholders stops "master plans" when they come with mistakes. Learning from relative failures, like the steam controller and the like, ultimately contributes to major successes like the steam deck. Being able to stay committed to improving the software experience over time, instead of killing the product when it didn't immediately succeed, is fairly rare in the tech industry. And in all honesty, it would be better if they released a polished profuct, but being committed to it made it a success.
I feel like the pressure to have a majorly successful product day one means that smaller companies can't innovate the way they want to, so they have to find other ways to produce revenue. Huge companies, like Apple can afford to do both but still stumble, like with the vision pro. Maybe it'll be a success, but for now its not great and iteration makes it more difficult to maintain the original vision.
I’m not quite sure they have “done nothing”. They have made a digital storefront that other storefronts strive for, they have help with Linux compatibility with windows only games, have released a few bits of awesome hardware every now and then. I think this is what happens when you are not beholden to shareholders and the mantra “make line go up at all costs”
"Don't interrupt your enemy when he's making a mistake."
You know sometimes I actually straight up FORGET that Steam is run by the same company that created Half-Life?
They:
- identified a gradient of human wants
(Video games exist; I want them on my computer) - Created a vector for that want to be satisfied
(Digital distribution that conveys the games I want to my computer) - Stayed the FUCK OUT OF THE WAY
When you do something well, people don't notice you've done anything at all.
- identified a gradient of human wants
I have a mixed feeling about Gabe and Valve.
While I am insanely grateful for proton (even if it was strategically important for them, they didn't do it out of kindness of heart), some other stuff disturb me:
- Valve being so lenient on CS2 skin gambling, hurting the young people
- A steam account being un-inheritable, making you defacto a tenant of your games
- The 30% percent cut, stealing money from devs
- Gabe spending his money on multiple mega yachts, like every asshole billionaire, instead of making the world a better place
- Gabe claiming to be a libertarian, like Elon and other pieces of shit
Being a private company, it's what it is called
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They were not liked at first, but they've spent enough time making money while not pissing people off that they are doing far better than every public company who must find a reason to piss people off to be more profitable.
They've been able to use that time to "cook". Valve time has been known to be within its own dimension, but from that we got Linux to be just click start and play for 90% of games like Windows, and with the Steamdeck a powerful, comfortable, DIY-able handheld PC gaming device.
You'd think it wouldn't be that hard for publishers with billions of dollars to hire enough competent devs for enough time to make a halfway decent storefront, especially when they don't even have to reinvent the wheel on a lot of UX and marketing research that's already been done for them by Steam existing as long as it's had.
That none of them have even come close to that is a monument to their incompetence.
"Valve used to be a company that made games, now it just makes money" is a joke so old I can't find the source, but I know it goes back at least 15 years.
Ultimately it's a slow and steady strategy. There goal is long term profitability, not short term gains. In the long term, the best strategy is not to piss off your customers.
The advantage of this is that it can snowball to impressive levels. At least until a exec with more education than brains does a pump and run on it. A mistake steam seems to know to avoid.
Monopoly and gambling reliance
Setting up an early monopoly while working to undermine brick and mortar stores?
This is why Gabe is the goat
Taking a long term view rather than exclusively focusing on the next quarter's numbers.
Fabianism
