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!