Valve is Taking Over The World

Valve is making some serious bank. Although we have no idea what the exact numbers may be, considering that Valve is a highly-secretive, privately-held company,what we do know is that they are growing at a rate that would make Apple and Google jealous.

During the BAFTA Awards and following his acceptance of the Academy Fellowship honor, Valve head honcho Gabe Newell spent some time discussing his business. It cannot be stated enough that this is a very uncommon occurrence. Usually tight-lipped and cryptic about, well, everything, when Gabe speaks about his company, all gamers should listen.

Newell first went over why Valve’s has been so successful as of late, mentioning that the companies profit and growth is largely due to user generated content on open platforms, like Steam Workshop.

He went on to say,“There’s sort of an insatiable demand for gaming right now. I think our business has grown by about 50 percent on the back of opportunities created by having these open platforms.”

It is true that the company has been able to hit the 50% growth numbers nearly every year of their existence, but the fact that they have kept with the trend at their current size is what is most impressive. Growth is by far the most important part of a business’ long-term health, and the the bigger the company, the harder it is to keep historical growth numbers…..unless you are Valve, it seems.

To put these numbers in perspective and prove how impressive this growth really is, Newell demonstrates Valve’s size by saying,“And just so people understand how big this sort of scale is getting, we were generating 3.5 terabits per second during the last Dota 2 update,” he added. “That’s about 2 percent of all the mobile- and land-based Internet activity.” These are truly massive numbers.

As another way to explain their breadth and reach, have a gander at these facts (as stated by Gabe himself at a recent University of Texas lecture):

  • Valve has MUCH higher revenue and profitability per employee than Google, Microsoft and Apple
  • It generates more internet traffic than most countries
  • Valve is the 4th largest bandwidth consumer in the world.

Mind officially blown. With no signs of letting up, it will be interesting to see what Valve looks like in the next ten years.

I have a feeling they will be an integral part of our everyday lives, not only for gamers like us, but for a large percentage of the general population as well. Gabe probably thinks so too.

What do you want to see from Valve in the coming years? Do you think this mega-growth is sustainable, even for a company like Valve? Let us know!

Advertisements

8 comments

  1. devilishwonder67 · · Reply

    roflmao, profits are high because of things like workshop. he sure knows how to lie and con. most of his profits are there because steam is being forced down our throats more and more as time goes with the damn steamworks drm. its almost as bad of a monopoly as microsuck is. sorry fanboys go ahead and rip me apart, but if you all would open your eyes instead of being blind you would see this too. valve is becoming an evil entity. who has shown time and again they dont care about the customer. and the media that writes this stuff is either turning a blind eye or isnt doing any research whatsoever.

    1. Sladverr · · Reply

      It’s a devilish wonder you even know how to use a computer. You sure are a stupid human being.
      Your post gave me cancer. Just stop.

      1. tinytoon · ·

        I agree with you is general attack on the evil evil corporation…meh … a wee bit lol. He has, however, spoken the truth about Valve’s support. By far the worst support I “enjoyed” I am a Valve customer since ’05 I think. Not a single support ticket was solved properly. What these guys allow themselves would be a reason for me to fire any of my support guys if I would read stuff in our tickets similar to what Valve delivers. Ridiculous.

      2. At least he got more points than you do. Plus, i really hope your bit about cancer is true. Grow up fanboy….

    2. Your a idiot.

      1. You’re*

  2. Jesse Cammpbell · · Reply

    i love alot of valves products i cannot wait to see if a left for dead 3 is in the works i loved them both and still play them to this day i would love to see valve make a console i can already see it destroying the new xbox and ps4 if they made co-op and rpg/mmos that were online, it seems consoles are straying away from it and we get stuck with shitty games like call of duty and gears, and whats worst is halo trying to become cod

  3. dakoslug · · Reply

    Gabe already knowssss

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: