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  3. Valve makes almost $50 million per employee, raking in more cash per person than Google, Amazon, or Microsoft — gaming giant's 350 employees on track to generate $17 billion this year

Valve makes almost $50 million per employee, raking in more cash per person than Google, Amazon, or Microsoft — gaming giant's 350 employees on track to generate $17 billion this year

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pcgaming
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  • S stupidcasey@lemmy.world

    It is actually very well established:

    https://link.springer.com/article/10.1007/s11211-008-0063-2

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    ScienceDirect

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    Equity theory - Wikipedia

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    Motivation crowding theory - Wikipedia

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    When Do Financial Incentives Reduce Intrinsic Motivation? Comparing Behaviors Studied in Psychological and Economic Literatures

    Objective: To review existing evidence on the potential of incentives to undermine or “crowd out” intrinsic motivation, in order to establish whether and when it predicts financial incentives to crowd out motivation for health-related behaviors. ...

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    PubMed Central (PMC) (pmc.ncbi.nlm.nih.gov)

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    https://www.bsfrey.ch/wp-content/uploads/2021/08/crowding-effects-on-intrinsic-motivation.pdf

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    falsewhite@lemmy.world
    wrote on last edited by
    #65

    The research is mostly about overpaying, not high but equal pay for everyone doing the same job. It happens when people compare their effort to others’ and if they feel over-rewarded it can actually lead to two outcomes:

    • Increasing effort to justify it, or
    • reducing effort

    And the evidence is actually mixed between the two outcomes, because different people respond differently to different incentives, like flexibility, holidays, etc.

    Equity theory mostly applies only when the work is measurable and the teams/individuals compare themselves constantly.

    IMO this can be solved by better management and equal pay for equal work/skillset.

    There are also other incentives that can crowd out internal motivation, such as surveillance, pressure, inequality. But obviously management doesn’t want to talk about those, much more profitable to reduce the pay.

    High pay alone doesn’t really trigger crowding out.

    I still maintain my position that this is largely a management and greed issue. And high and equal pay alone doesn’t create a lazy, zombie workforce.

    Here’s some studies and theories arguing the opposite:

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    Do financial incentives help or harm performance in interesting tasks? - PubMed

    There continues to be disagreement about whether financial incentives help or harm performance, especially in interesting tasks. Although the Jenkins, Mitra, Gupta, and Shaw (1998) meta-analysis finds a positive effect of incentives, including in interesting tasks (reported ρ ^ = +.34; our computed …

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    Efficiency wage - Wikipedia

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    https://wol.iza.org/uploads/articles/275/pdfs/efficiency-wages-variants-and-implications.pdf

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    • T truscape@lemmy.blahaj.zone

      Hey look, the contrarian is back! Wow! I thought you would take some time to reflect after your wack takes.

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      dukemirage@lemmy.world
      wrote on last edited by
      #66

      I don‘t think it’s very contrarian or whack to acknowledge the fact that I may need to sell on the biggest platform if I want my game to do well.

      T 1 Reply Last reply
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      • D dukemirage@lemmy.world

        I don‘t think it’s very contrarian or whack to acknowledge the fact that I may need to sell on the biggest platform if I want my game to do well.

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        truscape@lemmy.blahaj.zone
        wrote on last edited by truscape@lemmy.blahaj.zone
        #67

        I’m referring to your prior comments and history speaking in communities. The most recent one I remember involved Portal, Half-life, and counterstrike.

        You’re not at Lembot_0005 level comments yet tho, so that’s good.

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        • B Bob Robertson IX

          And Steam controls 80%-90% of the video game market?

          Chloé 🥕C This user is from outside of this forum
          Chloé 🥕C This user is from outside of this forum
          Chloé 🥕
          wrote on last edited by
          #68

          steam has a 75% marketshare of PC games distribution in the US. the 2nd biggest player, epic games, has a market share estimated from 3% to 7,5%. i can’t find data for steam’s market share outside the US, but i’d expect it to be even higher.

          if google can be considered to have a monopoly on web browsers with 73% of the marketshare, even as alternatives (like safari, 13%) exist, i don’t see why steam wouldn’t count as well.

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          • P prole@lemmy.blahaj.zone

            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.

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            nyctre@lemmy.world
            wrote on last edited by
            #69

            Doubt it. But, for what it’s worth, last I heard, valve was one of the most sought after employers in the business. Apparently the salaries are generous and you get to work on whatever you want, not on what a manager tells you to.

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            • U This user is from outside of this forum
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              ugurcan@lemmy.world
              wrote on last edited by
              #70

              Then again, somehow I don’t expect Valve’s expenditures are that high, except download server costs.

              crypt0cler1c@infosec.pubC S 2 Replies Last reply
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              • F falsewhite@lemmy.world

                I wonder if they’re also getting paid more or does greedy Gabe just take it all to fund his mega yachts.

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                generalemergency@lemmy.world
                wrote on last edited by
                #71

                Hey that’s not fair.

                Gabe is also spending all that money on Aston Martins Valkyries to race around the world.

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                • F FishFace

                  You are equating “monopoly” with “abusive monopoly.”

                  Google got its monopoly in internet search by being better than the competition. It’s still a monopoly, even though it mostly plays by the rules.

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                  warm
                  wrote on last edited by
                  #72

                  No, Google pays off other browsers to use Google as the default search engine, among many other actual monopolistic practices. Steam does none of that and simply provides a product.

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                  • T truscape@lemmy.blahaj.zone

                    I’m referring to your prior comments and history speaking in communities. The most recent one I remember involved Portal, Half-life, and counterstrike.

                    You’re not at Lembot_0005 level comments yet tho, so that’s good.

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                    dukemirage@lemmy.world
                    wrote on last edited by
                    #73

                    Yes, harassing users without context based on previous comments in other threads is much more valuable for a community. I don’t even remember having contrarian opinions about Portal or Half-Life, they are my favourite series‘.

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                    • G gladaed@feddit.org

                      Didn’t catch that, thanks. What is their actual profit before personal cost?

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                      snooggums
                      wrote on last edited by snooggums@piefed.world
                      #74

                      Profit is always after all costs, including personnel.

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                      • F FishFace

                        You are equating “monopoly” with “abusive monopoly.”

                        Google got its monopoly in internet search by being better than the competition. It’s still a monopoly, even though it mostly plays by the rules.

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                        B This user is from outside of this forum
                        Bob Robertson IX
                        wrote on last edited by
                        #75

                        You are equating “monopoly” with “abusive monopoly.”

                        No, I’m not. I’m saying they aren’t a monopoly by the simple fact that they aren’t the only providers of the service they sell. And while they are currently in a position to use their power to make themselves a monopoly, they are not doing that and instead are playing fair with their competition.

                        F 1 Reply Last reply
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                          thedudev2@lemmy.ca
                          wrote on last edited by
                          #76

                          Buddy. Take a breath for a moment. I mean this constructively; it’s an opportunity to learn.

                          What you’ve just said here is essentially this:

                          1. Some journalists sometimes make errors.
                          2. Therefore I choose to make an interpretive error.

                          Please remember, we all make errors (myself included). The best of us learn from them.

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                          • N nyctre@lemmy.world

                            Doubt it. But, for what it’s worth, last I heard, valve was one of the most sought after employers in the business. Apparently the salaries are generous and you get to work on whatever you want, not on what a manager tells you to.

                            S This user is from outside of this forum
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                            skunkworkz@lemmy.world
                            wrote on last edited by
                            #77

                            If I remember correctly they have performance based bonuses

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                            • T thedudev2@lemmy.ca

                              Buddy. Take a breath for a moment. I mean this constructively; it’s an opportunity to learn.

                              What you’ve just said here is essentially this:

                              1. Some journalists sometimes make errors.
                              2. Therefore I choose to make an interpretive error.

                              Please remember, we all make errors (myself included). The best of us learn from them.

                              N This user is from outside of this forum
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                              njm1314@lemmy.world
                              wrote on last edited by
                              #78

                              Not just that but I mean journalism geez. I can’t think of a profession that has had more of a fall from grace in the last 20 years. Furthermore the implication here is video game journalism, which has always been the lowest form of Journalism.

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                              • appoxo@lemmy.dbzer0.comA appoxo@lemmy.dbzer0.com

                                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)

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                                grimy@lemmy.world
                                wrote on last edited by
                                #79

                                You could defend Amazon with that logic. the fact that the barrier of entry is high is exactly what let’s Steam, Microsoft, Sony and Nintendo abuse of their soft monopoly.

                                Nothing justifies owning a billion dollars worth of of boats.

                                appoxo@lemmy.dbzer0.comA 1 Reply Last reply
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                                • G This user is from outside of this forum
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                                  grimy@lemmy.world
                                  wrote on last edited by grimy@lemmy.world
                                  #80

                                  Amazon doesn’t either. Most of the arguments defending Steam can easily apply to every other “bad” company.

                                  The only thing that differentiates steam is their marketing budget targeting small forums and Reddit.

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                                  • Z zorque@lemmy.world

                                    Again, implying gross profit, not net. It didn’t say “makes” 50 million profit. You are inferring something that is not otherwise implied.

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                                    skeptomatic@lemmy.ca
                                    wrote on last edited by
                                    #81

                                    Nah he’s right. Nobody buys a widget for 5 bucks and sells it for 10 bucks and says, “I made 10 bucks”. By your rational I could buy a car new for 25 grand, sell it 10 years later for 12 grand and say I “made” 12 grand off it.
                                    “Make” has typically implied profit for as long as I can remember.

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                                    • TheTechnician27T TheTechnician27

                                      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.

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                                      zippy
                                      wrote on last edited by
                                      #82

                                      I wouldn’t describe it as a “monopoly” per say. I’d describe it as “all of the competition is filled with idiots”:

                                      newell competition shooting themselves in the foot

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                                      • G grimy@lemmy.world

                                        Amazon doesn’t either. Most of the arguments defending Steam can easily apply to every other “bad” company.

                                        The only thing that differentiates steam is their marketing budget targeting small forums and Reddit.

                                        W This user is from outside of this forum
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                                        warm
                                        wrote on last edited by
                                        #83

                                        I never mentioned Amazon, but it’s really no comparison, even the FTC in the USA has filed suits against them for monopolistic and illegal behaviour.

                                        Ive never seen an advert for Steam myself, outside of on their own platform or a video on their own YouTube channel. They sell largely through word of mouth. I suppose recently they offered journalists to visit their HQ to show off their new hardware.

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                                        • N njm1314@lemmy.world

                                          It’s not misleading, you’ve just purposely ignored the meaning of the words to instead imply your own.

                                          H This user is from outside of this forum
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                                          hzl
                                          wrote on last edited by
                                          #84

                                          Is this fun for you?

                                          1 Reply Last reply
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