Also because valve is private, they don’t have any legal obligations to return maximise profit. They can purposefully lose money if they want and it’s not illegal. (At least to my knowledge)
I’m just curious but how/why would competitive pricing be illegal but not what Epic does with aggressive exclusivity agreements/offers? If Steam wanted to, could they keep prices the same to stay above the law but then use their overwhelming market share + capital to secure exclusivity across the board? I feel like the end results would be the same, securing a monopoly at the cost of short term profitability.
Thats actually what valve does. Valve mandates all games on platforms must be the same retail price (e.g a game on Steam cannot be sold for 60$ retail, but be sold for 50$ on epic), not including deals and sales.
Its standard with how physical stores demand that digital copies of games must retail at the same price as physical else stores would see that as an attack on the business by the company.
There is essentially some level of price normalization.
Private companies can have shareholders(all nfl teams but the Packers), its just a game of finding shareholders who doesnt care about constant short term profit.
Also because valve is private, they don’t have any legal obligations to return maximise profit. They can purposefully lose money if they want and it’s not illegal. (At least to my knowledge)
It would be illegal if they did it to price out the competition, which I don’t think is something they do.
I’m just curious but how/why would competitive pricing be illegal but not what Epic does with aggressive exclusivity agreements/offers? If Steam wanted to, could they keep prices the same to stay above the law but then use their overwhelming market share + capital to secure exclusivity across the board? I feel like the end results would be the same, securing a monopoly at the cost of short term profitability.
Thats actually what valve does. Valve mandates all games on platforms must be the same retail price (e.g a game on Steam cannot be sold for 60$ retail, but be sold for 50$ on epic), not including deals and sales.
Its standard with how physical stores demand that digital copies of games must retail at the same price as physical else stores would see that as an attack on the business by the company.
There is essentially some level of price normalization.
Ton of public companies lose money…
As long as execs get paid, it is all good.
Yeah, that’s it right there. Not being public means they don’t have to appease shareholders who want maximum growth and returns.
I’m guessing this is a big part of it. A private company can do just about whatever they want as there are not shareholders that you are working for.
Private companies can have shareholders(all nfl teams but the Packers), its just a game of finding shareholders who doesnt care about constant short term profit.