Valve Is More Profitable Per Employee Than Apple And Google

Little is known about Valve's financials, but there is no doubt that it is sitting on one of the industry's most profitable gold mines: Steam.

During an interview with Forbes Magazine, Valve founder Gabe Newell acknowledged that the company is "tremendously profitable" and that it is more profitable per employee than Google and Apple.

Newell then refused to confirm that other companies have tried to acquire Valve as a whole or take over Steam separately, but he did acknowledge that "there's been interest."

The Valve founder then noted that although PC comprises less than 10% of the overall gaming industry, Valve's focus on that segment is the main driving force behind it current success. "If we tried to blaze new trails of our own and ride all the latest trends, we'd likely be bankrupt by now," he mused.

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I love how valve think they

I love how valve think they are blizzard. They wont get any money from me ever again. I'm not buying half life 3 because its been AWOL for about 6 years or some shit. Left 4 dead is not a fucking game, its shooting fish in a barrel. They might be cashing it in like crazy, but I won't buy steam games. My money seems to be going to EA more and more often, why? Do i buy their dlc? hell no, I buy their games because they publish dice, and crytek games and they don't invade my fucking pc with a god damned shop. I don't want a storefront on my pc games. Its capitalism at its fucking worst. The good news is Gabe newell won't live long. He's going to collapse in on himself from his own weight and for a mini black hole, hopefully taking his servers with him in a short lived pizza singularity.

"I don't want a storefront on

"I don't want a storefront on my pc games"

Then use steam in offline mode. No web connection required, no advertisement, no game store. This is what sets steam apart from other forms of DRM, it lets you choose whether to connect online to authenticate and update games or just play on your own.

"Its capitalism at its fucking worst"

Many people consider it convenient to be able to buy products right on their pcs and not have to rely on optical disks that can get scratched, break and have an average shelf life of 10 years. Like it or not digital distribution (whether its steam or some other service) is here to stay. Better get used to it.

"He's going to collapse in on himself from his own weight and for a mini black hole, hopefully taking his servers with him in a short lived pizza singularity. "

Yes , so funny. We all realize he's very fat but that remark was as mature as your point of view.

hmmpf

Valve made halflife 1 copying quake. They aren't original. PRobably their halflife 2 code had quake code in it as well. I don't see the attraction around lifting people on pedestals who are just replicating someone elses engine and making a story.
\

They are modders thats all. I did buy halflife 2 though cause i was interested in what the fuss was. I didn't finish it as it got boring. I finished all ID games though.

1. copy others success
2. keep to minimum
3. sell other peoples games and make some profit.

Sounds like Apple app store bahaha

um what? so by that response

um what? so by that response than almost EVERY GAME EVER is a rip off? you realize most game companies DO NOT use their own engines, they use someone elses. look at Epic, the Unreal engine is used in more games than I could imagine. the engine hardly makes the game, and modders when they do full conversion mods are basically devs that just arn't getting paid (ps valve you know bought the license to use the quake engine and there for sell it and not be 'modders') also, the original half life did things never before seen in a major fps game possible never even seen in any fps game.... hows that not original?

also no half life 2 would have had no code from quake as that was their own in house engine. which is also used by other companies. someone really needs to learn about game develupment

Steam = Gay Worst thing ever

Steam = Gay

Worst thing ever made, Valve you have screwed up the PC Gaming industry forever. You may have made half-life but you are now considered GAY. Your system doesn't even work when I buy your rip off priced games (btw I'm in Australia). All it ever does is ban me when I do things properly so now I visit Jack Sparrow at the piratesbay. How about you close your steam as every single game on steam can be extracted and cracked (Note to developers).

For the developers who think there safe. No one is safe from a pirate. If you make a good game I'm going to go out and buy it if its not on steam and not full of copy "stop a user playing the game properly" protection. If you make a TDU2 and NFS Hot Pursuit I'm going to be happy I downloaded it as it will be going in my recycle bin and I would of saved my 100 bucks.

Note to Sony - WELCOME TO THE WORLD OF PIRATING LMAOOO!!!

No Suprising

Thats funny, PC gamers account for 10% but if it were not for PC gaming, the whole gaming industry would die. Intel and AMD would prob drop out of the domestic market and go strictly supercomputer/military. Advancements in processing power and graphics is driven by the desire for better graphics by pc users. For the cost of my PC, I could have bought 15 bare xbox360s. Steam has over 30 million registered users. Pretty comparable to xbox sales around 40 million. And while console game sales are down, Steam sales are up 200%.

Deluded gamer

"if it were not for PC gaming, the whole gaming industry would die"

How so? 10% is still 10%, without 10% the other 90% would still go on, maybe increase because those that were part of the 10% would move on to consoles. That was a completely illogical statement you made there. If you have facts to back it up post them.

"Intel and AMD would prob drop out of the domestic market and go strictly supercomputer/military"

Another gamer delusion. Gamers represent a very small percentage of computers sold. Businesses are the bulk of their income and they use domestic pcs and laptops.

"Advancements in processing power and graphics is driven by the desire for better graphics by pc users"

Again gamers represent a very small percentage of those sales, hence they don't drive the advancements. Processing power advances because we always need more when it comes to servers (web servers, application servers, database servers etc...) our little gaming quad cores don't drive crap.

The same goes for graphics, 3d artists (which work on a variety of areas like movies, simulations, medicine etc...)

"Steam has over 30 million registered users. Pretty comparable to xbox sales around 40 million"

Considering getting a steam account is free you can't just equate registered users with game sales. There is a reason for pc gaming to be considered just 10% of the industry (steam + all other sales). No point trying to say that's wrong unless you start busting out some pretty good maths to prove it (not that primitive thing you tried with accounts = game sales).

No idea on the graphic artist part

Ive been in the graphic art industry for 15 years now and have never owned a Intel or AMD based system. The graphics engine used in gaming are entirely different from those used in CGI, and some graphic designing systems. Graphic designers don't require any special powerful Intel next gen systems as Apple does the best job here. I don't think they really make games for the Apple or MAC, maybe a few. I agree that PC enthusiasts drive the desktop advancements, just like graphic designers drive the advancements in MACs and their GPUs.
I don't know, did I make sense? Just thinking back, I think most of the businesses I worked for used Macs. Remember the iMac? I still see those in use 10 years later.

Obviously a know it all.....

Without going into to much detail, since I'm obviously dealing with a "know it all", I'll provide you with a few important details. I really could go on and on about how misinformed you are, but whats the point.

First, show me a business that stocks its desktops with processors that are less than 4 years old, and I'll show you a business that is in the red.

Second, Most servers are equipped with processors that are current commodity processors of the lower range. In a loose usage of the term, servers are now included in the usage of the term "supercomputer", as they typically combine multiple low end CPUs, anywhere from 10 to thousands. Its home PC enthusiasts that are purchasing the high end processors, not businesses, and thus, its the home PC enthusiast that drives advancements the industry. It really then filters everywhere, why should Microsoft develop new advanced graphic support, DX11, If there is no one willing to pay for it? Is there more advanced stuff out there, yes, but you or I could not afford it, and that's a whole separate market unrelated to the gaming industry, software or hardware. Not to mention the market share of this industry is insignificant, and in most cases, not even part of Intel's or AMD's business plan. Again, If you had knowledge in this area, you would know that Texas Instruments is a big player with its UltraSPARC III microprocessor, not Intel or AMD.

Third, you want numbers, here you go. But first a little info on how to interpret these numbers, since I imagine you've never seen anything like this before. If you had, you would be better informed. Read through the PDF, its got some interesting statistics. Note how much larger the Asian market is when compared to the US. I for one support our new Asian Overlords.

PC Client Group = PC sales
Date Center Group = Server Sales
Other Operating Group = Everything else, including console sales, hand-held, ect

Also, my mistake, I left out a word, "domestic console market"

Anyway, as you can see, console sale dollars for Intel are nothing more than a drop in the pond, and are there more for name recognition than profit, more like advertisement you could say.

Sure I may be a little biased toward Intel, since they do pay my bills.

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WOW

Intel's console/handhelds sales total 486 million out of 11 billion for PC/Server sales in Q4 2010. That's like .04% of sales. I had no idea. Why do they bother? Maybe its old technology, Xenon mabe?

They got my money

I've spent more money through Valve than any other medium. Ive got a xbox360, PS2, and Wii. I will buy a game from steam for the PC before the console any day. Its cheaper and better graphics, and wider variety of games. I have 2 steam accounts with over 2 hundred games on each.

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