Saturday, August 18, 2012

Why Valve Is Such A Smart Company

Today after hearing news about Facebook's stock prices and the over evaluation of the companies worth I began thinking about what companies handle business right and wrong. I looked up how bad the evaluation of Facebook's stock was and found out that the CEO Mark Zuckerberg approved the company evaluation at $38 a share. Since then the stock has dropped too $19. After seeing this and hearing all the arguments as to what happened and why it happened I began thinking of what companies I would put financial trust in, and the one that came to mind was Valve.

Some of the main reasons why I would put absolute financial trust in company would be fact that Steam has 400 million individual users signed up. Not many services have that many individual people using the service and millions of daily active users. Valve is a company that has taken the suggestions and comments of how to improve Steam for the users and put those suggestions in place. Within the next few weeks Valve will be using Steam to distribute software other than gaming for users around the world. The website is also expanding to make it much easier to navigate and find all topics and options available for each individual game by easier access to forums, workshop creations, and more. It's been rumored and hoped that perhaps Gabe Newell would lead Valve into developing it's own operating system for PC users to have as an alternative to Windows. While the rumors have not been proven true about and operating system I would feel absolutely confident and willing to use it considering Gabe Newell knows how to make the PC experience the best it can, and this is due to the fact that Gabe worked for Microsoft for over 13 years before leaving and founding Valve with Mike Harrington.

After thinking and looking up all the facts I decided to look up if Valve sells stock and how much a share could cost. I discovered that Valve hasn't gone public and sold stock for investors to buy. I have to admit at first I was a bit surprised considering how reliable of a company Valve is, but after reading why they aren't public I see why Valve has gone above and beyond everyone's expectations. In 2010 Gabe Newell and Erik Johnson addressed the media as to why they won't be going public and selling stock. They're reasoning was because if investors come into the decision making process they would have to satisfy the investors who are a completely different kind of customer, compared the customer who enjoys Valve for their games and Steam service. Investors would begin to invest in the company because of the fantastic reputation it has and they would have no idea why it's so fantastic due to the fact they aren't users or gamer's. After reading about this my respect for Valve shot through the roof! It's reasons like this that I will continue to use Steam on my own computer and recommend it to all friends and viewers and hope to perhaps if I make into the game development career to land a job at Valve. 

Everyone raves about how fantastic companies like Facebook and Apple are and I absolutely disagree. I say the most inspirational in business model and the most fantastic company is Valve. Gabe Newell and Mike Harrington have created one the best companies in this day and age. 

That is my rant as to why I have so much respect for the company Valve. If you agree or have an opinion please leave a comment letting us know your opinion.

Cameron Deao

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