In my opinion game studios should not sell out to investors and/or have any stocks as it will lead to profit making the calls eventually. It is tempting to get a bunch of investment, I know it would make my game studio easier to run right now, but then you are constantly reminded how it all ends up. Don’t like the system, stop playing in it and build your company slowly and organically instead and retain full control.
Same goes for many businesses outside of gaming. Imagine if there was no such thing as the stock market / investors and all companies had to grow on their own merits.
In my virtual studio everyone is their own sole proprietorship contributing to the project off and on and getting compensated fairly for their contributions. They also have their own projects too and may even pay me to help them sometimes. This way everyone assumes their own risk and reaps their own benefits. If any one person on the virtual team has a hit with their project, they retain full control and owe no money back to some shareholders who did nothing but lend money to make money. It does mean I am way slower than if I could just hire everyone full time as employees, but knowing where having investors will ultimately take me, I accept. Plus going slower means more time to sit on things and polish and not feel time pressure to appease shareholders.
Shareholders are a little like getting a loan and depending on how successful you are, you have to pay back more than you borrowed and giving them control on your art. No thanks.
as it will lead to profit making the calls eventually.
Unfortunately it’s not even this. A company can be perfectly profitable and still be sued by shareholders for not making them money. This is because the leeches shareholders only want to see short-term growth at any cost so they can dump the stock 2 quarters later at a profit
In my opinion game studios should not sell out to investors and/or have any stocks as it will lead to profit making the calls eventually. It is tempting to get a bunch of investment, I know it would make my game studio easier to run right now, but then you are constantly reminded how it all ends up. Don’t like the system, stop playing in it and build your company slowly and organically instead and retain full control.
Same goes for many businesses outside of gaming. Imagine if there was no such thing as the stock market / investors and all companies had to grow on their own merits.
In my virtual studio everyone is their own sole proprietorship contributing to the project off and on and getting compensated fairly for their contributions. They also have their own projects too and may even pay me to help them sometimes. This way everyone assumes their own risk and reaps their own benefits. If any one person on the virtual team has a hit with their project, they retain full control and owe no money back to some shareholders who did nothing but lend money to make money. It does mean I am way slower than if I could just hire everyone full time as employees, but knowing where having investors will ultimately take me, I accept. Plus going slower means more time to sit on things and polish and not feel time pressure to appease shareholders.
Shareholders are a little like getting a loan and depending on how successful you are, you have to pay back more than you borrowed and giving them control on your art. No thanks.
Unfortunately it’s not even this. A company can be perfectly profitable and still be sued by shareholders for not making them money. This is because the
leechesshareholders only want to see short-term growth at any cost so they can dump the stock 2 quarters later at a profitFTFY.
Yeah, but why make it out to be a gaming industry problem? It’s a capitalism and stock market problem.
Because it’s ok to talk about different types of business. It’s also ok for you to read an entire comment. Try it.
What did you fix? Companies addition. I don’t get it.
They’re showing that they didn’t really read the whole comment, as that’s already in there…