Gabe Newell feels the “rate of change” in games development is making older business models irrelevant

Friday, 11 January 2013 19:17 GMT By Stephany Nunneley

Valve’s Gabe Newell feels traditional production models used by larger game makers will not be a viable business plan for much longer.

Speaking in the podcast on The Nerdist podcast, Newell said new finance models such as Kickstarter, are driving the change in game production.

“There are a bunch of different ways that communities can drive what is going to happen, and one of the last pieces is to figure out how the community itself can drive the financing of projects,” he said. “I actually think that’s going to happen regardless. The earlier fans start supporting a project, the greater the results are going to be.

“Entertainment will get better, creators will do better, I think the percentage of control and the amount of money that goes to things like distribution and marketing will fall, and I think that’s a fine thing.”

Larger publishing firms which use older business and development models, will no longer be able to keep up, he feels.

“I doubt that a lot of the larger corporations will be able to make transitions into the new world,” Newell said. “I don’t think the big companies will [remain relevent]. I think the rate of change is too fast for most of them to adapt.”

Thanks, CVG.