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

Friday, 11th 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.

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9 Comments

  1. Dragon246

    “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.”
    Valve included?

    #1 2 years ago
  2. Ajsman

    Unlike other big publishers Valve is a private company with 300-400 people. They have no managing boards and no shareholders to report to. So if Gabe feels like it, next week Valve will be a producing candy and cars instead of games.

    #2 2 years ago
  3. Erthazus

    @1, Valve is a private and small digital distribution company.

    @2, 293 people actually work there.

    #3 2 years ago
  4. manamana

    @3 I wouldnt exactly say that 293 people makes a *small* company.

    And yes Gabe, you are awesome. Now bring us HL3 on your big/little or whatever-foot and let the games begin!

    #4 2 years ago
  5. Phoenixblight

    @3
    300 people and worth 4 billion. Where EA employs thousands and is worth the same so yeah they are “small”

    30-40 of those people are actual game developers.

    #5 2 years ago
  6. Diingo

    Is it just me? Or does it seem people (like Gabe) who wear round glasses tend to be ahead of the curve? The same goes for Steve Jobs & John Lennon, all of which had round glasses. Could Gabe go down in history as the man who defined the gaming revolution?

    #6 2 years ago
  7. wishdokta

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

    Announce ALL the episodes..

    .. and laugh.

    #7 2 years ago
  8. DSB

    It’s always dangerous to be ambitious, but with a smaller, more competent pipeline, I think you can do a lot of stuff that is completely out of reach of the folks who think that a large headcount and a big budget automatically ensures quality.

    #8 2 years ago
  9. Talkar

    I think Blizzard might have another take on this. Last I heard WoW and SC2 were doing pretty damn well for PC exclusives.

    #9 2 years ago

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