If their handbook is to be believed, Valve has a much more flat management structure, where it's basically Gabe at the top, sortof, and everyone else doing whatever they think is best for the company, and there's a fluid system where people can move between groups according to their interests and how they perceive they can add value. So, unlike in Microsoft's case, Valve's people have an easy avenue towards putting 'if you can't beat 'em, join 'em' into practice.
Valve has a radically different corporate culture from most other companies in it's space. It doesn't come from the 80s, or indeed almost any other time. Perhaps the stack ranking works a lot better because of it.
I could see why - dealing with support tickets from irate people is not a particularly interesting (or judging by Steam's runaway success: particularly value adding) activity.
Not that I mean to hijack this to complain about Steam, but you have to admit it's a benefit of a traditional management structure: someone is making sure the shitty-but-necessary work gets done.
I suspect that if Valve wanted to, it could easily hire lots of people who would be happy to man the customer service helplines and who wouldn't be either able or willing to try to make TF2 levels or whatever.
Maybe the management structure is what limits the size of Valve, though.
I've never used Steam's customer support; do they outsource any of it to contractors and/or offshore?
You mean Half Life with it's last full iteration from 10 years ago, and the second episode with a cliffhanger from 2009? Or the Source engine (HL2) which evolved from GoldSource (HL1) which was based on Quake 1 engine (with some parts from Quake 2 engine) - even the Call of Duty engine which aged well too is based on the more modern Quake 3 engine, and I wouldn't consider it shiny in 2016. Rockstar's RAGE engine as well as Crytek engine (StarCitizen, Crysis), and the Frostbite (Battlefield 1) are light years ahead and far superior in every aspect and that's what I would consider shiny tech.
Valve is what Valve is today because of the success of steam. They produce little games like Dota2 more for fun than anything else, they gt rich with steam.
Those 'blank' 10 years saw the release of Left 4 Dead 1/2, Team Fortress 2, Portal 1/2 and CSGO, for instance, as well as that 'little' Dota2 (which is clearly a large game by any metric you care to choose). At least three of those games involve regular ongoing content infusions. Add in the development of the Source 2 engine, and the Steam Controller, and the work on the SteamOS platform and whatever else on Steam Machines.
This is out of the 330 employees that also support those >100 million customers using the service on a regular, possibly daily, basis. As I pointed out, Rockstar uses more manpower than Valve just to create essentially one game every few years. The last GTA game I bought (San Andreas) did have graphics well behind the state of the art too.
Even if we assume that those 330 employees are doing nothing but working on Steam, it's still a tiny number compared to the customer base. AirBnB, for instance, has had 2 million listings in it's lifetime, and it has about 2300 employees. Uber has over 6000 employees on about 8 million customers, and both those cases are ones where people aren't typically regular users.
It seems that Valve has serious problems actually pushing their games to completion since they started printing money with Steam and pressure to actually release went away.
TF2, CSGO and Dota 2 are regularly, and visibly updated constantly. In no way are these moribund or 'stopped in development'; the latter two are still among the most played and watched competitive games online.
It's also stretching things to say that Valve 'acquired' Portal and it was dropped 'after acquisition', since Valve essentially bought the team that made a small gameplay prototype and fleshed out the mechanic into two full-fledged AAA games.
So that just leaves 'Left 4 Dead', which was a case of Valve buying a company, publishing it's game and then putting out a full-on sequel. Given how similar L4D2 was to L4D1 (to the point where the first game was essentially contained inside the second, and there was even a threatened boycott by fans), would it really have been a smart move to make a third so soon?
Sure, it's been, what, three years since the last full game release by Valve. That's quite a long time, and there is no doubt less pressure to release sooner because they're sitting on their money-printing machine, but that sort of timeframe isn't exactly unprecedented in this business. The Rockstar studio I mentioned is on a 5-7 year turnaround for it's one main title - though it does aid and abet Rockstar's other studios.
I suspect part of what's going on is that Valve is uber PR-conscious these days, given it's position in the market and can afford to be a ultra-conservative about quality control (though hopefully not in game design) in any new game it's going to put out.
Left 4 Dead, company was bought.
Team Fortress was a Mod for Quake. Through a aquire hire transfered the Mod to Half Life 1 (GolgSource engine based on Quake 1 engine). Team Fortress 2 was planned to be released in 1999/2000. Though it took additional 11 years and at least complete restart to release Team Fortress 2 based on Source engine.
CounterStrike was a free Mod from fans for Half Life 1. They aquirehired the team around CounterStrike 0.9. Some say it went downhill from there. CS 1.4 was the last classic CS.
CS Source was a port from GoldSource to Source engine. As Source engine is just an incremental evolution, it was just a matter of building the game again and later replacing textures and models with higher ones, etc.
CS Go is a rehash of CS Source simplified for console gamers and ported to consoles.
Dota was originally a fan-made Mod to WarCraft 3. Valve aquirehired them to create Dota2, a standalone version based on Source engine. Blizzard wasn't amused and announced a similar game a few days after Valve announced Dota2 back then.
Half Life 1 (GoldSource) is based on Quake 1 engine (with small parts from Quake 2 engine), and of cource evolved. Half Life 2 (Source engine) evolved from GoldSource engine. Videos from HL2 beta show clearly the old DX7 renderer and loading older HL1 map format. Valve worked on HL2 episode 3 and Warren Spector (Deus Ex, System Shock) and his former company worked on HL2 episode 4. But Valve decided to shut down both. The unclear situation for several years makes HL fans angry. HL2 episode 3 / HL3 is the new Duke Nukem Forever, at least that one got released after 11 years - we will see about HL2. We all remember also the shitshow around the HL2 release. The infamous HL2 demo at E3 2004 was faked and the game was nowhere to be ready. The leaked video footage a year later showed how far behind Valve was behind the announced release schedule. Half Life 2 was finally released another year later with heavily shortened gameplay and many previously features removed. Making it basically a different game that feels very differently to the original Half Life 1.
Sure the Battlefield team has made Frostbite which is shinier than Source. Did they also make their own store, gamepad, and VR headset?
Wii minigames in VR are still just Wii minigames, whole thing feels like something I'd expect from a hackday from a company as supposedly prolific as valve.
Got a strong feeling the talent is long gone.
Little games like Dota2? It's the biggest title on Steam in terms of players by a large margin and probably the 2nd most popular game worldwide on PC to ever exist (behind LoL)
It also generates a significant amount of revenue for Valve through the sales of tournament ticket and cosmetics.
> It has something like 330 employees servicing 100 million customers on the go-to PC gaming platform
Actually there is a lot less people who actually have any connection to userbase at all. Most probably never even publicly known.
Few years ago one producer who visited Valve commented that in office there was one of areas where he was told something like "and here is our Steam department". And back then that was like 20-25 people at most include both partner relations and marketing.
All they did was recreate a city full of assets and added game mechanics to it in five years and made the most expensive (at the time) game product in history with more than 1000 people involved in production and the fastest selling entertainment product in history. A game that broke eight Guinness world records and sold more than 65 million copies and well over $2b in revenue. And that's only GTA 5.
All they did, numerous times so far, was to create vast games full of created digital assets. Games that hold record-breaking sales numbers and hold positions in all best-selling video games charts. That's all they did. Nothing to write home about, really. Bunch of slackers.
Also:
http://www.gamespot.com/articles/gta-5s-online-mode-has-gene...
There is no denying Valve does great with the number of people it has, but of all the badly managed companies they could be compared to, Rockstar really it is not a good example...
In the last few years, Valve has developed multiple new pieces of hardware with software support; the Steam Controller, Steam Link, and HTC Vive. They've also developed and supported a new platform, SteamOS, and rolled out hardware with manufacturing partners. Besides this, the Steam platform has added live-streaming (like twitch), family sharing, big picture mode, the VR UI, and other features. They were also involved in the development of the graphics API Vulkan, which they need for their Linux-based SteamOS to become a better platform.
These are just what I can think of off the top of my head and don't even explicitly involve any games (though they released a collection of 11 small experiences for VR as well).
Interesting thought experiment: Break the sales for DOTA and TF2 into ~$50 increments and compare that number against total sales for the last two GTA's put together. I suspect Valve will beat them at least twice over.
Rockstar has an army of artists working on those assets for that game. Valve is a multidisciplinary house where they dabble in a lot of stuff, split in smaller groups, but their primary vehicle is Steam and a couple of (successful) games where each project does not need as many people. It's comparing apples to oranges.
What Rockstar does demands an army of artists. If Valve were to do same type of game world, they would have an army also. They do not do the same thing though.
If Rockstar were to do what Valve does, they would also have a number of people split into smaller teams working on their own things. They do not do the same thing though.
That's why you can't say it's all Rockstar does with same number of people. Those people are not the same skill and those projects are not the same.
Rockstar's yield, if you're comparing the game industry, is a level above Valve. It's a level above most. It's really not a good example to compare to. They are on the leading edge of what they do. An area Valve isn't in. Maybe if you've compared Avalanche Studios and Just Cause 3. They had 75 core-member team in a studio of 250 and, who knows how many, outsourced people.
Yeah they actually manage to ship games (that manage to make back the entire production budget in pre-orders alone), not just sit on their hands running an online store with an outdated and clunky client.
This is a common story with people trying something new. If you do the old-fashioned thing—buy IBM, so to speak—and fail, well, these things happen. A lot of factors could have contributed to the problem. But if you try something new, the new thing must be at fault—even though all those other factors apply just as much now as they did in the IBM case.
Support still gets done, because when you hire you specifically hire people who love doing support. Those people exist, and they get tremendously emotionally involved in the quality of their work, just like anyone else.
In every department there are people who struggle with the flat hierarchy and free range to work on what you like, who have a strong emotional need to know who is in charge, and to be told what needs doing. Those people struggle, but they are by no means relegated to any one department -- plenty of them are engineers.
So, depending on how you interpret the term "stack ranking", you can either look at it as "forced removal of the bottom x% of the company" or "people aren't ranked / bucketized". In the MSFT case, I believe that the former has been removed. But the latter definitely cannot be removed if you are to have performance-based compensation.
> At any company (Microsoft included) where performance-based
> compensation exists, there is a budget for that line item.
I'd like to point out that it's possible to pay bonuses out of profits, rather than a fixed, yearly pre-allocated pool. If employees are only paid a bonus when they add to company profits, there is no competition for bonus funds between employees. So for example, if you have a great idea that saves the company 30% on something, you get half of that saving/profit, or something similar.That would be far from perfect, there will be free loaders, and most likely than not it will be slightly unfair to everyone. But at least you have removed the perverse incentive to sabotage coworkers in order to look yourself better.
For example: you write an algorithm in your spare time that more efficiently packs together a good that your company produces, such that shipments take up 10% less volume thus saving ~10% on shipping.
My sense is performance evaluations should be banished from the corporate world, for the most part. Usually a waste of time, but that is where managers can be helpful as they are carrying an ongoing assessment of the value of each of their employees at all times.
Actually there's a lot of research that contradicts this. Essentially as long as people have enough money that they don't worry about money ie a comfortable middle class lifestyle for country/area, and they don't think they earn significantly less that their peers, money is very inefficient and occasionally negative incentive for tasks that require a decent level cognitive ability.