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Valve Layoffs: Several (25?) cut as Valve makes 'large decisions' about its future

Jackl

Member
Mar 3, 2007
1,565
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Steambox is likely to be on hold indefinitely, unless my original assumption that they're investing in a refined Linux/OpenGL OS is correct.


I doubt a merger is in the mix as Valve. They're valued well over a billion dollars last I remember. That is some serious cash to allocate, but isn't out of the question to purchase an entire DD network.
 

FatalMuzza

Banned
Feb 2, 2010
178
0
0
New consoles so PC gaming market shrinks. Steam tied directly to PC so Valve shrinks. Plain and simple. Gotta downsize in preparation. Business 101.
 

Stiflers Mom

Banned
Apr 27, 2012
8,499
12,777
1,150
I am not against firing people (although I always thought that Jeri Ellsworth working there was quite cool), a boss sometimes gotta do what has to be done.

But it sounds so contrary to the stuff we usually hear about Valve.
 

SparkTR

Member
Jul 16, 2008
9,571
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New consoles so PC gaming market shrinks. Steam tied directly to PC so Valve shrinks. Plain and simple. Gotta downsize in preparation. Business 101.

I doubt it was anything related to revenue. Valve is not a large company going by personnel, their store has been growing at a steady rate of a million concurrent users year over year, and they also have the cash cow that is Dota 2. The mentioning of a 'great cleansing' makes it seems more like a clashing of ideologies, which wouldn't surprise me given how much Valve has been changing these past couple of years.
 

nubbe

Member
Jun 7, 2004
17,749
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"You have to be really aggressive about firing people," Newell said

Later, fires everyone
 

WhiskeyKnight

Member
Aug 18, 2009
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Where is this GIF from?
 

EVIL

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Dec 16, 2008
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www.evilart.biz
I doubt it was anything related to revenue. Valve is not a large company going by personnel, their store has been growing at a steady rate of a million concurrent users year over year, and they also have the cash cow that is Dota 2. The mentioning of a 'great cleansing' makes it seems more like a clashing of ideologies, which wouldn't surprise me given how much Valve has been changing these past couple of years.

Its in free beta, not making them allot of cash. Neither is the in-game store going by the earnings of some of the workshop submissions.
 

MrHicks

Banned
Dec 2, 2007
7,395
0
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funny how valve appears to be this HUGE force in the industry yet many analysts value the company at roughly 1-2billion

bigger companies can buy it out in a second the moment gabe gets bored of it all
 

Orayn

Member
Jul 4, 2010
34,289
4
920
Minnesota
Its in free beta, not making them allot of cash. Neither is the in-game store going by the earnings of some of the workshop submissions.

The creator of TF2's top-selling item made $500,000 last year. It's a 25/75 split in Valve's favor. This is from one item, out of hundreds.
 

Zia

Member
Oct 15, 2011
7,185
0
0
Its in free beta, not making them allot of cash. Neither is the in-game store going by the earnings of some of the workshop submissions.

I think they've released too much too quickly. In the long run, more options will always be beneficial to the player, and to Valve, but not necessarily the creators as everything gets swallowed into this nebulous blob of a marketplace. The slow rollout of TF2 items makes for more of an event. Plus, most of the items aren't attractive to those not already invested in the game. I've shown TF2 items to friends and family who then wanted to go play the game. In its aesthetic cohesion, Dota 2's items don't have that draw.

They also need to get the damn tutorials and Mac version out. Basically-open beta or not, the game is still inaccessible or unavailable to many, many people.
 

Psychotext

Member
Jun 15, 2007
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That's pocket change for companies like McDonald's and Coca Cola so a hostile takeover is extremely plausible.

You can't force the buyout of a private company... so a hostile takeover is basically all but impossible (unless you literally torture / blackmail) the directors.
 

thomasmahler

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May 11, 2010
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That's pocket change for companies like McDonald's and Coca Cola so a hostile takeover is extremely plausible.

Sorry, but a 1-2bn takeover (which as others have stated wouldn't be possible unless Gabe and other CEOs are completely on board with the buyout) isn't a small deal for any company.

Disney just bought Lucas with all his assets and everything he ever created for 4bn in stock exchange.

Sony couldn't afford it, Nintendo couldn't afford it and even for Microsoft a sum like that isn't 'pocket change' at all.
 

Sentenza

Member
Dec 3, 2011
14,803
2,162
970
funny how valve appears to be this HUGE force in the industry yet many analysts value the company at roughly 1-2billion
They were actually valued roughly 1-2 billions few years ago when EA was considering a buyout.
Now their value is estimated in at least twice as much, and it would probably inflate to insane levels if they were ever going with a IPO (which I hope it doesn't happen).

Especially considering how they are keeping growing at a steadily rate no matter what.

That's not "pocket change", that's almost half of what Sony is valued today.
 

Guevara

Member
Jul 27, 2009
24,814
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MS could absolutely afford it and they'd buy it if they could. They spend more on M&A than that every quarter.

The problem is Valve isn't for sale.
 

VALIS

Member
Jan 3, 2005
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This is a company that has made more questionable decisions than good ones in the last year or two, but if this is an indication they're moving away from Steamboxes and Linux, it's good news for them. They have lots of power in the storefront/ecosystem world but would be pissing into the wind in the hardware business.
 

mrklaw

MrArseFace
Jun 10, 2004
59,895
2
0
Windsor, UK
He certainly wouldn't go to Dice a couple a days ago and talk about the need to get into the living room. Talk about the good/better/best Steambox. Talk about local streaming being the future. Talk about all that, and days later, can everything.

It seems like they've been experimenting in a million different directions. It's only natural, at some point, you decide on a couple directions you want to take and then drop all the other experiments. That's how products are made.


But if you were doing that, why layoff the people working on the other options? If you are moving forward with one or two projects, why not bring those other people onto those teams as they ramp up?
 

Sibylus

Banned
Dec 18, 2007
23,682
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waypoint.vice.com
Oct 28, 2005
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Sorry, but a 1-2bn takeover (which as others have stated wouldn't be possible unless Gabe and other CEOs are completely on board with the buyout) isn't a small deal for any company.

Disney just bought Lucas with all his assets and everything he ever created for 4bn in stock exchange.

Sony couldn't afford it, Nintendo couldn't afford it and even for Microsoft a sum like that isn't 'pocket change' at all.

Absolutely wrong. As of last March, Nintendo had $10.5 billion in the bank.

Don't buy into the "Nintendoomed" hype.
 

jcm

Member
Dec 8, 2008
5,102
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How do you "hostile takeover" a private company? Do you.. like.. invade their offices with AK47s? :p

You can do it the Corleone way. "My father made him an offer he couldn't refuse... Luca Brasi held a gun to his head, and my father assured him that either his brains or his signature would be on the contract."

Absolutely wrong. As of last March, Nintendo had $10.5 billion in the bank.

Sony has even more than that, but a multi-billion dollar acquisition would be a big meal for either of them. For MS it would be an appetizer.
 

1-D_FTW

Member
Jun 14, 2006
17,069
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But if you were doing that, why layoff the people working on the other options? If you are moving forward with one or two projects, why not bring those other people onto those teams as they ramp up?

Post from the other thread:



Probably going with whomever is indispensable, less so anyone related to hardware.

Interesting hire.

I think it's also worth noting that he seemed to be wrestling with this issue in recent interviews. He clearly regretted not being more proactive with firing people. He's talked about this. It really could have just been a clean sweep of people who had either outlived their usefulness, or just weren't meeting expectations. And they decided that rather that keep ignoring the elephant in the room, it was time to make some moves.

With the info that's been released since I made that quote, I'm more inclined to believe it was this than anything.
 
May 22, 2011
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The title turned out to be accurate. From the OP:

We've been unable to determine an exact headcount, but phrases we've heard from affected employees describing the incident include "great cleansing" and "large decisions." We've seen the number "25" tossed around, but are unable to confirm this.

http://www.valvetime.net/threads/updated-3-staff-departures-from-valve.243175/

Babi Velho - Portuguese Representative
Bay Raitt - Artist, SFM Developer
Brian Decker - Customer Support
Ed Owen - Hardware Product Developer
Elan Ruskin - Programmer
Greg Towner - Animator
Frank Crockett - Technical Writer
Jeri Ellsworth - Electrical Engineer
Joe Han - Animator
Joel Shoop - UI, UX Designer
Keith Huggins - Animator
Leslie Redd - Director of Educational Programs
Marc Nagel - Test Lead, IT Developer
Matthew Russell - Animation, Designer
Micah Gregorio - Technical Support
Michael Caldwell - Designer
Mike Durand - Software Engineer
Moby Francke - Artist, Art Director
Noel McGinn - Animator
Olivier Nallet - Software Developer
Realm Lovejoy - Artist
Roger Lundeen - Architect, Environment Artist
Tanio Klyce - Engineer
Tom Leonard - Senior Game Designer

^ 24

Ironically, it looks like the HW department was the one least affected! :lol