The same reason countless studios have destroyed successful IPs (like EA). Sure it’s profitable but it could be MORE profitable. Sales were up last year? Cool story, have sales improved over that this year though??
It’s not just shareholders, I mean that’s a huge part why public corporations endlessly seek growth. But, even private corporations are beholden to capitalism’s inherent growth imperative.
The only way to maintain solvency is to grow. Without growth you can’t save, and if you can’t save, you can’t accumulate investment capital. Which basically means your corporation is stuck in stagnation and is being eaten alive by interest rates.
If you aren’t investing back into your company as much as your competitors then they will eventually push you out of the market. It’s called the Growth imperative .
In the end, the people who make these sorts of decisions will often bail out with their quarterly bonuses before the poo hits the fan. It’s everyone else who has to deal with the fallout.
Honestly, why ruin something already raking in money hand over fist? Valve is profitable, sustainable, and all around well executed.
Messing with it would cut profits!
The same reason countless studios have destroyed successful IPs (like EA). Sure it’s profitable but it could be MORE profitable. Sales were up last year? Cool story, have sales improved over that this year though??
It’s not just shareholders, I mean that’s a huge part why public corporations endlessly seek growth. But, even private corporations are beholden to capitalism’s inherent growth imperative.
The only way to maintain solvency is to grow. Without growth you can’t save, and if you can’t save, you can’t accumulate investment capital. Which basically means your corporation is stuck in stagnation and is being eaten alive by interest rates.
What? Why? If I’m making a million dollars profit a year, why can’t I just put it in a bank account or ETFs or whatever every year?
If you aren’t investing back into your company as much as your competitors then they will eventually push you out of the market. It’s called the Growth imperative .
Greed and incompetence
In the end, the people who make these sorts of decisions will often bail out with their quarterly bonuses before the poo hits the fan. It’s everyone else who has to deal with the fallout.
You clearly haven’t heard of private equity
If you’ve read/watched ready player one, that’s what likely to happen if the sixers won.