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Steam is a huge success, and it's arguably the leading digital distribution platform for gamers on the PC. But has the growth of Steam's business led to a slowdown in Valve's own games development? Is the so-called "Valve Time" actually a symptom of Steam's hogging Valve's resources? That's the argument that Stardock's Brad Wardell made to IndustryGamers this week.
Stardock just sold off its Steam competitor Impulse to retailer GameStop, and Wardell said the decision was really quite simple. While Impulse was a huge revenue driver for the company as a whole, it required many of Stardock's top people to work on constant improvements, thereby preventing more progress on actual games development.
"Yeah, we could have become a retailer and tried to compete in that space long-term, but there were two possibilities. One is that we'd lose out and become a permanent minor player – Impulse relative to Steam today I would argue is a minor player. Or two, we'd be successful and we're basically just a 600-person retail digital distribution company where three-quarters of the staff are sales people and account managers. And when the winning scenario is not what your objective in life is, then it's time to re-evaluate what you want to do," he explained.
Wardell proceeded to make direct comparisons to Valve and Steam, noting that Stardock is actually pretty similar.
"Even though Valve is in Seattle, where you can get developers everywhere, [Steam's] had an effect on their own development schedule. There's not been a new Half-Life in a long time; a lot of people have complained about that. They've had their own challenges getting new titles out the door, and a big part of that I'm sure is the same problems we've had. When one of your groups is so ridiculously profitable, every business instinct you have is to throw all your best people at it, because that's what's making the money. That's just sound business. At the end of the day, again you have decide if that's what you want to do.
"Steam and Valve, internally speaking, of the companies out there I would say we're the most similar. Obviously they're bigger and far more successful than our games unit is, but culturally they're pretty similar. If you were to look at a timeline of games developed in-house by Valve – not developed externally and then acquired – and you look at before Steam and after Steam, it's definitely had an effect. I don't argue that that's a good thing or bad thing, but I do know the effect that's had on us, where I've had to put some of my top developers over the years onto Impulse to make sure it was getting better and better."
It's an interesting dilemma for a developer to be in. Most game developers don't look to get into this industry with the idea of running a retail portal for digital distribution.
Stardock just sold off its Steam competitor Impulse to retailer GameStop, and Wardell said the decision was really quite simple. While Impulse was a huge revenue driver for the company as a whole, it required many of Stardock's top people to work on constant improvements, thereby preventing more progress on actual games development.
"Yeah, we could have become a retailer and tried to compete in that space long-term, but there were two possibilities. One is that we'd lose out and become a permanent minor player – Impulse relative to Steam today I would argue is a minor player. Or two, we'd be successful and we're basically just a 600-person retail digital distribution company where three-quarters of the staff are sales people and account managers. And when the winning scenario is not what your objective in life is, then it's time to re-evaluate what you want to do," he explained.
Wardell proceeded to make direct comparisons to Valve and Steam, noting that Stardock is actually pretty similar.
"Even though Valve is in Seattle, where you can get developers everywhere, [Steam's] had an effect on their own development schedule. There's not been a new Half-Life in a long time; a lot of people have complained about that. They've had their own challenges getting new titles out the door, and a big part of that I'm sure is the same problems we've had. When one of your groups is so ridiculously profitable, every business instinct you have is to throw all your best people at it, because that's what's making the money. That's just sound business. At the end of the day, again you have decide if that's what you want to do.
"Steam and Valve, internally speaking, of the companies out there I would say we're the most similar. Obviously they're bigger and far more successful than our games unit is, but culturally they're pretty similar. If you were to look at a timeline of games developed in-house by Valve – not developed externally and then acquired – and you look at before Steam and after Steam, it's definitely had an effect. I don't argue that that's a good thing or bad thing, but I do know the effect that's had on us, where I've had to put some of my top developers over the years onto Impulse to make sure it was getting better and better."
It's an interesting dilemma for a developer to be in. Most game developers don't look to get into this industry with the idea of running a retail portal for digital distribution.
Source: Industry Gamer
Apr 16 2011, 02:24 PM
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