Right?! I freaked on the same paragraph. Most depressing thing ever said about game dev. These suits would rather fire everyone and play stonks all day if it earned a dime more. I’m so mad for the massive creative force being crushed by this broken system.
t3rmit3@beehaw.org 5 weeks ago
Navok noted that if a game costs $100 million to make over five years, it has to beat what the company could have returned investing a similar amount in the stock market over the same period. “For the 5 years prior to Feb 2024, the stock market averaged a rate of return of 14.5%. Investing that $100m in the stock market would net you a return of $201m, so this is our ROI baseline,” he explained.
This is why capitalism ruins everything. So it’s not even about making art that is profitable, it’s about beating out other investment opportunities that someone could have chosen, even if it meant the art didn’t get made.
That is so ass-backwards.
Investment should be about wanting to grow a company whose products you believe in, both to see returns when those products perform well, but also to enjoy the future products.
Someone whose attitude is “I don’t care about your products at all, I just care about cash ROI” will turn around and short your stock and disparage you, if they think it’ll net them more money. In other words, they won’t actually look out for the best interests of the company, and will always be looking out for opportunities to plunder the business for more profit.
And this is supposed to create a healthy market for goods? Please.
“The free market makes goods compete to see what customers prefer.” Apparently not.
Apparently it creates a situation where the products can be profitable and amazing and well-loved, but a bunch of wealthy assholes who don’t care about the products at all can decide the company isn’t up to their standards, and punish or kill it.
luciole@beehaw.org 5 weeks ago
MagicShel@programming.dev 5 weeks ago
I feel like cooperations are inherently evil. The owners have no actual liability for the harm they do, and their highest calling is profits. I don’t know how to encourage investment without the stock market, but I do know if you play a little game called “what is the end result,” you’ll quickly see a dystopic future where everyone is slaves except in name.
We’d better look into the French solution long before it gets to that point.
t3rmit3@beehaw.org 5 weeks ago
I don’t know how to encourage investment without the stock market
I invest in stuff that’s not stocks all the time. When I give money to someone so that they will hopefully create a cool new product in the future (e.g. a video), I’m not paying for an individual video, I’m investing in them as a creator in hopes for future ROI. That’s Patreon.
We treat the addiction to wealth accrual different from any other addiction, in that we laud it, but make no mistake that it is addictive. Watching numbers in your account go up gives you a rush, just as sure as watching numbers in a video game.
When other addictions cause harm, we push people to get treatment, or at very least condemn the addiction. When someone is addicted to the accrual of wealth, even to the detriment of others, we call them, ‘genius’, ‘savvy’, ‘visionary’, or ‘shrewd’.
Sunforged@lemmy.ml 5 weeks ago
There is no value considered in providing stable income to the team members. No value considered in artists honing their craft. Even if the games only had marginal profits in and of themselves, considering the cost of big budget games, there is still huge value in creating and maintaining a large IP like this.
I fucking hate everything about this.
AndrasKrigare@beehaw.org 5 weeks ago
I think it highlights how perverse the stock market itself is. It doesn’t really seem like it functions much as a way for riskier ventures to raise capital outside of a bank, but a giant casino that gives the illusion of not being a zero sum game.
It’s hypothetically possible for a company to make more money in the stock market by investing in themselves than by creating anything (see Tesla). And if all companies could behave this way and somehow knew what the stock market would do for 5 years, I’d wager a TON of companies wouldn’t meet it, invest in the stock market, drive up the “value,” more don’t meet it, etc. etc. until no one is making anything, and everyone is happy with their paper fortunes and try to sell.
Jayjader@jlai.lu 5 weeks ago
It’s such a destructive mindset, and it seems to me like indie games are hopefully on the cusp of re-demonstrating to the rest of the industry why it is so.
Art/luxury products depend on catering to subjective tastes to turn a profit. You need to speak to someone’s perspective or interests, and are competing for their disposable income against all other forms of entertainment. Thus the wider the targeted audience, the harder it is to outcompete the rest of the market on “consumer interest” (no idea if that’s the proper use of the term but it sounds correct for the context), the harder it is to even turn a profit.
Simultaneously, these corporations want an ever-greater magnitude of profit (aka growth). So they decide to target the widest audience possible, while investing as much capital as they can.
That’s already an unstable balance of priorities. As soon as you start conceiving yourself as competing with almost every single other market on the basis of shareholder speculation, in terms of ROI, it’s doomed.
You’re not just shooting yourself in the foot, you’re trying to do a Paul Muad’hib Atreides except because this is reality, not sci-fi, instead of drinking the Water of Life you mixed 10 grams of ketamine, 5 tabs of acid, and a fistful of meth into a blue Gatorade and chugged it in one go. All you end up doing is vibrating in place so hard you begin to slough off flesh and erratically disintegrate, like some sort of sad eldritch horror.
God do I hate corpos sick with capitalism.
To continue the Dune analogy, they really could use some ecology-derived thinking: specialize and find your niche (or help it emerge), and give back to the rest of the ecosystem so that it continues to flourish with you. Monoculture has a negative correlation between scale and sustainability, let alone ROI.
MiddleKnight@discuss.tchncs.de 4 weeks ago
[deleted]t3rmit3@beehaw.org 4 weeks ago
This misses the point in so many ways, I’m not sure where to start… but here goes:
That is how you ensure people’s skills are being utilized where they are needed/wanted.
Except that that’s the opposite of what happened here; their skills were wanted by many people, to the point of profitability and sustainability, but other people, who didn’t care about the skills or how they were utilized, decided that whatever the product was, it wasn’t good enough. Their skills were literally not part of the consideration here at all.
And yeah, it is conceivable that the video game industry would have to shut down at some point in response to developments happening in society. Other forms of entertainment becoming more preferred. Or things going sideways so the focus becomes meeting more basic needs. That kind of flexibility is a good thing.
Except that’s not what we’re talking about either. Once again, this was not a situation where the actual demand for the product was not present due to media evolution, or product quality, or lack of consumer discretionary spending; it was. The product was both in-demand and in fact profitable.
That kind of flexibility is a good thing.
This was not flexibility, this was- again- the opposite of that; a rigid metric that did not consider anything beyond cash growth, despite the fact that products are the point of a company. Without products, the company will not generate any profit. Without companies generating profit, the market as a whole will not grow. Without market growth, there is no ability to invest elsewhere.
That’s why this (and all the other hyper-growth-minded investment planning) is so short-sighted; sustainability ensures continued operation, which enables future profits. Demanding unsustainable growth ensures collapse, which precludes future profits. And eventually people who have been burned by this will start cutting investors out of the equation, which also precludes profits (for investors).
If you have people investing millions of dollars into something, it isn’t art but business.
No, it is both if it is a business that creates art. Without the art (product), it would not have a business.
MiddleKnight@discuss.tchncs.de 4 weeks ago
Sorry about deleting the post. Couldn’t remeber if beehaw was one of the instances with rules again dissenting opinions after some time away from Lemmy (I’m pretty sure there was one which would rather be without).
But I think you managed to quote most of it.
Being wanted/needed should be viewed in relation to everything else you could do with the resources available is my point. Not only your particular hobby/interest.
And I still maintain that if you want pure art, you are better off lowering your expectations for professionalism and find people who do it for reasons that are not financial.
t3rmit3@beehaw.org 4 weeks ago
Being wanted/needed should be viewed in relation to everything else you could do with the resources available is my point.
Except that this is a red-herring; they invested in a company (e.g. Squenix) in the first place because they believed it would outperform other investment choices. They gambled, and they lost, and they are trying to make that out to be the company’s fault instead of their own.
And I still maintain that if you want pure art, you are better off lowering your expectations for professionalism and find people who do it for reasons that are not financial.
No thanks. I’ll just continue rejecting the premise that profit is a good thing to measure all things in life by. This is just another variation of labor devaluation that Capitalism does to all things that it can’t (easily) exploit to enrich the Bourgeoisie.
frog@beehaw.org 4 weeks ago
This is basically why the largest studio in my county shut down last year. It was considered “insufficiently profitable” by the parent company. Not unprofitable. It was turning a profit and had produced some highly regarded games, including an award winner. It was also a company that treated its employees well, including offering highly flexible working hours and having a dog-friendly office. I’d been eyeing them up because I’d hoped to work there when I got my degree. But nope, they’re gone now because they weren’t making enough money.
I believe society as a whole should stop idolising the wealthy, and start seeing their inability to be satisfied with having enough money for a comfortable life as the dysfunction it is. Never being satisfied no matter how much money you have should be seen as a problem, not something to aspire to.