I’m hoping Valve, a relatively small company that is sitting on what i imagine is gamings biggest revenue stream, will choose to keep the company private.
Amazon tried getting into game production as well and seems to have middling results at best. Having the financial backing is significant, but it doesn’t guarantee success.
Valve is Augustus Caesar. A benevolent dictator that did much to improve the quality of life of his citizens, but still a dictator. They’ve centralized control over the PC gaming sphere and brought tons of legitimate improvements to the hobby. Now they have no legitimate competitors. Epic Games is a mosquito bite, Prime Gaming is nothing, GOG is the closest thing and even they’re miles behind.
It only took a couple of generations to go from Augustus to Nero. I do not anticipate good things once Gaben retires/dies.
I admit that I still make Steam purchases, but this has started to be in the back of my mind when doing so. It is still another company that sells stuff that the customer ends up not owning. With all that they’ve done for gaming on Linux and doing right by their customers so far, it’s just so hard to doubt them.
The larger company needs to hinder the smaller company with pointless slapp lawsuits. That way the smaller company will be too busy to innovate anything new.
So after investing millions in this, this is incredible insight that the VP has gained:
Talk to Real Customers Before Writing Code
I really recommend reading his LinkedIn post, just to understand how these people think, and how fucking incompetent people at the top raking in millions are. It’s surprisingly honest for a LI post (although that bar is very low), probably because the guy is now retired and doesn’t give a shit anymore.
I honestly never even processed that Prime Gaming was a thing and that it was trying to compete with Steam. I just knew they purchased Twitch and thought they’d probably abandon it into a shitty, old and slow site like they did with IMDB and Goodreads.
As VP of Prime Gaming at Amazon, we failed multiple times to disrupt the game platform Steam. We were at least 250x bigger, and we tried everything. But ultimately, Goliath lost. Here’s why:
The 15+ year long attempt to challenge Steam started before I was VP of Prime Gaming, but we never cracked the code. Not under my leadership or anyone else’s.
The first way we tried to enter the online-game-store market was through acquisition. We acquired Reflexive Entertainment (a small PC game store) and tried to scale it. It went nowhere.
Then, after buying Twitch, we created our own PC games store. Our assumption was that gamers would naturally buy from us because they were already using Twitch. Wrong.
Finally, we built “Luna,” a game streaming service that let people play without a high-end PC. Around the same time, Google tried the same thing with their product “Stadia.” Neither gained significant traction. The whole time, Steam dominated despite being a relatively small company (compared to Amazon and Google).
The mistake was that we underestimated what made consumers use Steam.
It was a store, a social network, a library, and a trophy case all in one. And it worked well.
At Amazon, we assumed that size and visibility would be enough to attract customers, but we underestimated the power of existing user habits. We never validated our core assumptions before investing heavily in solutions. The truth is that gamers already had the solution to their problems, and they weren’t going to switch platforms just because a new one was available.
We needed to build something dramatically better, but we failed to do so. And we needed to validate our assumptions about our customers before starting to build. But we never really did that either.
Just because you are big enough to build something doesn’t mean people will use it.
Reflecting on these mistakes, I realize how crucial it is to deeply understand customers before making big moves. That’s why James Birchler’s guest newsletter caught my attention—his piece is a practical guide on obtaining real customer insights and using them to challenge entrenched assumptions that can hurt product success.
James breaks his advice down into three key steps, illustrated with stories from his time as VP of Engineering at IMVU:
Talk to Real Customers Before Writing Code
Test Assumptions, Not Just Features
Build Measurement Into Your Process
After explaining how he learned these lessons the hard way (getting screamed at by customers and board members), James shares action items you can implement within a week to improve how you understand your customers.
I wish Amazon had followed James’ playbook before trying to take on Steam. But since we didn’t, at least you can.
It’s corporate arrogance. “We are so big we can take that market” without understanding what built that market.
They think business is numbers but it is about relationships with people.
Feels like every 5 years some major Internet company looks at how many billions video games draws in, established markets with PC and consoles, and how much hype and marketing gets thrown around the space and decides they can do it better.
With zero understanding of what consumers want, expecting to be able to charge extra for content that no one asked for or services like steam offer for free, and usually with such an awful UI and interactions with the consumer you wonder if they see potential customers as anything but cattle to be figuratively slaughtered and try to milk as much currency as they can with overpriced subscription(s) and not-so-micro microtransactions.
Edit: For those that want examples, most recent one comes to mind is Stadia
Every prime gaming offer I took was for games on steam. I really thought they were just promoting twitch with drops and stuff, not actually trying to compete. Haha, the balls.
What’s awesome is you will still catch Twitch streamers actively encouraging people to use their free prime gaming sub to their channel or any channel because “fuck Jeff Bezos” lol
There’s also this thing that happens where, as a whole, we’ll just act capriciously.
I don’t know if it’s true of younger gamers but my generation seems to really choose at random whether we like your product or want you to die in a fire. Any fishy behavior can tip that scale pretty quickly, and if we already recognize a brand, and it’s not one of our arbitrarily Chosen Few, then we might not even give you a chance. Just because we know the name, and that’s already a strike against you.
I love your optimism, but looking at the current trends of preorders, microtransactions, gacha games, … Most gamers don’t care about corporate greed and dive into it head first…
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Valve is a private company with no debts. No reason to sell to anyone.
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Valve is worth $10 billion and Gabe Newell owns >50% of it.
Unfortunately, every man has a price.
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I’m hoping Valve, a relatively small company that is sitting on what i imagine is gamings biggest revenue stream, will choose to keep the company private.
The reason Valve is so great is because it’s a private company. I hope they’ll never sell out.
Do nothing. Win.
Why does every single picture of Gabe look like hedonism bot wrapped in skin?
I went to their website, it reminded me of AWS.
At least prime video looks half decent.
Amazon tried getting into game production as well and seems to have middling results at best. Having the financial backing is significant, but it doesn’t guarantee success.
Honestly I was excited about o3de and still follow it from time to time, but the project feels so industrial versus Godots work
Valve can make some good calls, but do you guys -really- think enshittification is not coming for it ever? It’s just a matter of time.
Valve is Augustus Caesar. A benevolent dictator that did much to improve the quality of life of his citizens, but still a dictator. They’ve centralized control over the PC gaming sphere and brought tons of legitimate improvements to the hobby. Now they have no legitimate competitors. Epic Games is a mosquito bite, Prime Gaming is nothing, GOG is the closest thing and even they’re miles behind.
It only took a couple of generations to go from Augustus to Nero. I do not anticipate good things once Gaben retires/dies.
When Gabe dies, sure, enshittification will happen. In the meanwhile, enjoy Steam for what it is for now, but prepare with contingencies.
I admit that I still make Steam purchases, but this has started to be in the back of my mind when doing so. It is still another company that sells stuff that the customer ends up not owning. With all that they’ve done for gaming on Linux and doing right by their customers so far, it’s just so hard to doubt them.
Amazon who? Never heard of them.
It’s a rainforest, I think.
I thought it was a matriarchal warrior society?
Some book website that thought it would branch out into games for some reason
That’s not how Capitalism works!
/s
The larger company simply needs to create/invent problems that the smaller company cannot solve, and then sell a solution.
And buy them out at some point too. Very important step.
The larger company needs to hinder the smaller company with pointless slapp lawsuits. That way the smaller company will be too busy to innovate anything new.
I knew they were trying to compete, but at the end of the day fuck bezos. Useless shit on the world.
So after investing millions in this, this is incredible insight that the VP has gained:
I really recommend reading his LinkedIn post, just to understand how these people think, and how fucking incompetent people at the top raking in millions are. It’s surprisingly honest for a LI post (although that bar is very low), probably because the guy is now retired and doesn’t give a shit anymore.
I honestly never even processed that Prime Gaming was a thing and that it was trying to compete with Steam. I just knew they purchased Twitch and thought they’d probably abandon it into a shitty, old and slow site like they did with IMDB and Goodreads.
Could you link a screenshot of the LinkedIn post? I don’t want to make a LinkedIn account.
As VP of Prime Gaming at Amazon, we failed multiple times to disrupt the game platform Steam. We were at least 250x bigger, and we tried everything. But ultimately, Goliath lost. Here’s why:
The 15+ year long attempt to challenge Steam started before I was VP of Prime Gaming, but we never cracked the code. Not under my leadership or anyone else’s.
The first way we tried to enter the online-game-store market was through acquisition. We acquired Reflexive Entertainment (a small PC game store) and tried to scale it. It went nowhere.
Then, after buying Twitch, we created our own PC games store. Our assumption was that gamers would naturally buy from us because they were already using Twitch. Wrong.
Finally, we built “Luna,” a game streaming service that let people play without a high-end PC. Around the same time, Google tried the same thing with their product “Stadia.” Neither gained significant traction. The whole time, Steam dominated despite being a relatively small company (compared to Amazon and Google).
The mistake was that we underestimated what made consumers use Steam.
It was a store, a social network, a library, and a trophy case all in one. And it worked well.
At Amazon, we assumed that size and visibility would be enough to attract customers, but we underestimated the power of existing user habits. We never validated our core assumptions before investing heavily in solutions. The truth is that gamers already had the solution to their problems, and they weren’t going to switch platforms just because a new one was available.
We needed to build something dramatically better, but we failed to do so. And we needed to validate our assumptions about our customers before starting to build. But we never really did that either.
Just because you are big enough to build something doesn’t mean people will use it.
Reflecting on these mistakes, I realize how crucial it is to deeply understand customers before making big moves. That’s why James Birchler’s guest newsletter caught my attention—his piece is a practical guide on obtaining real customer insights and using them to challenge entrenched assumptions that can hurt product success.
James breaks his advice down into three key steps, illustrated with stories from his time as VP of Engineering at IMVU:
After explaining how he learned these lessons the hard way (getting screamed at by customers and board members), James shares action items you can implement within a week to improve how you understand your customers.
I wish Amazon had followed James’ playbook before trying to take on Steam. But since we didn’t, at least you can.
Literally “we’re big so we’ll make money” with no thought on the product actually being offered.
Hilarious.
“But we acquired a successful franchise! All we have to do is attach a handle to it and crank it and the money will come flying out!”
This is such lukewarm obvious stuff to anyone who’s done any agile project management that it’s mind-boggling they would fail to do it.
But I guess it’s what happens when decision are made by bean counters with absolute authority.
It’s corporate arrogance. “We are so big we can take that market” without understanding what built that market. They think business is numbers but it is about relationships with people.
Feels like every 5 years some major Internet company looks at how many billions video games draws in, established markets with PC and consoles, and how much hype and marketing gets thrown around the space and decides they can do it better.
With zero understanding of what consumers want, expecting to be able to charge extra for content that no one asked for or services like steam offer for free, and usually with such an awful UI and interactions with the consumer you wonder if they see potential customers as anything but cattle to be figuratively slaughtered and try to milk as much currency as they can with overpriced subscription(s) and not-so-micro microtransactions.
Edit: For those that want examples, most recent one comes to mind is Stadia
Every prime gaming offer I took was for games on steam. I really thought they were just promoting twitch with drops and stuff, not actually trying to compete. Haha, the balls.
What’s awesome is you will still catch Twitch streamers actively encouraging people to use their free prime gaming sub to their channel or any channel because “fuck Jeff Bezos” lol
The only reason anyone even knew about Prime Gaming was they pushed it with Twitch.
Lrrr: Why does the larger company not simply eat the smaller one?
Oh they do, frequently
Pretty ballsy to put up a long LinkedIn post that boils down to “I am incompetent and should not be hired under any circumstances.”
Not when you’re retired
Huh, did they make an alternative I don’t know about?
It’s not as if gamers could smell the stench of corporate greed
There’s also this thing that happens where, as a whole, we’ll just act capriciously.
I don’t know if it’s true of younger gamers but my generation seems to really choose at random whether we like your product or want you to die in a fire. Any fishy behavior can tip that scale pretty quickly, and if we already recognize a brand, and it’s not one of our arbitrarily Chosen Few, then we might not even give you a chance. Just because we know the name, and that’s already a strike against you.
I love your optimism, but looking at the current trends of preorders, microtransactions, gacha games, … Most gamers don’t care about corporate greed and dive into it head first…