I thought companies made money by selling a product to customers? Hmm, seems like there is some kind of contradiction here, perhaps Phil should look into that.
Investors don’t care about that anymore. Line must go up more and right now. If not, they will replace you with someone who promises to do that.
The best ways to raise stock prices include downsizing, jacking up prices, and cutting product quality to save cost. None of these are even remotely beneficial to the customers.
It’s like trying to win a rally by removing the brakes from the rally car.
No. Modern capitalism is about increasing value for shareholders. Customers, quality, morality, etc. aren’t relevant.
Profit, selling games, and maximizing value for shareholders are all fully correlated, to the point of being the same thing at different stages of the process.
Modern capitalism moves away from all three by focusing instead on current-quarter profit.
You make money by both selling more and spending less.
Think about it, you can have none money left over at the end of the month by working extra hours at your job or by spending less money on something - but what if you can't work extra hours because there's none available? And what if you need that extra cash at the end of the month? The only thing you can do is spend less.
Phil is kind of saying the same thing you're saying here, but it's not easy to just "sell more", not when everyone else is struggling to have that extra cash to spend.
The games industry right now, as a whole, isn't growing. That means companies are selling less. Phil end everyone else would love to sell more, by all means if you've got some solid ideas on how to do that then every games industry veteran out there will happily listen to you, but the sad and shitty reality is that sales are down and when you're a business, if you can't increase sales you've got to cut costs.
And that means job losses. It fucking sucks and we can have debates all day long about the merits of capitalism and all that, but that's the reality of today. That's the game. Phil is being honest and up front here, it's a shitty game but he's playing it and if he wasn't playing it, someone else would.
It's not a contradiction at all. Yes CEOs are the main beneficiary of the system but they're still accountable to shareholders who run on pure capitalism. There's plenty of examples of CEOs trying to do the right thing only to get sued by the shareholders then kicked out of their jobs. Nothing about corporations inherently needs to be done in a capitalist way, except the fact that publicly traded companies are legally required by law to run as capitalistically as possible, and if you don't accept Venture Capital or go public, good luck getting anywhere in this system.
Hell, basically the entire premise of syndicalism is to put workers in control of the workplace and let things naturally evolve from there. Once you remove the core pillar holding capitalism up, everything will fall down one by one like dominos. If you want to see a fraction of how that works just look at places with high unionization compared to ones without and it's like a completely different world.
The perception of profit is a more powerful force than actual profit.
Markets select for profit by simply trimming away the things that don’t make profit.
Boards of directors select for the perception of profit by firing CEOs who don’t provide them with that perception.
These systems are both operating. The companies that don’t make a profit will still die. It’s just that under this system, a company that’s on track to making profit can be redirected by a Board onto a path where they aren’t, because of that second mechanism.
![Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business'](https://lemmy.ml/pictrs/image/ad52be4c-4529-48df-ae10-9135c073f0f7.jpeg?format=jpg&thumbnail=256)
I thought companies made money by selling a product to customers? Hmm, seems like there is some kind of contradiction here, perhaps Phil should look into that.
Investors don’t care about that anymore. Line must go up more and right now. If not, they will replace you with someone who promises to do that.
The best ways to raise stock prices include downsizing, jacking up prices, and cutting product quality to save cost. None of these are even remotely beneficial to the customers.
It’s like trying to win a rally by removing the brakes from the rally car.
No. Modern capitalism is about increasing value for shareholders. Customers, quality, morality, etc. aren’t relevant.
Profit, selling games, and maximizing value for shareholders are all fully correlated, to the point of being the same thing at different stages of the process.
Modern capitalism moves away from all three by focusing instead on current-quarter profit.
You make money by both selling more and spending less.
Think about it, you can have none money left over at the end of the month by working extra hours at your job or by spending less money on something - but what if you can't work extra hours because there's none available? And what if you need that extra cash at the end of the month? The only thing you can do is spend less.
Phil is kind of saying the same thing you're saying here, but it's not easy to just "sell more", not when everyone else is struggling to have that extra cash to spend.
The games industry right now, as a whole, isn't growing. That means companies are selling less. Phil end everyone else would love to sell more, by all means if you've got some solid ideas on how to do that then every games industry veteran out there will happily listen to you, but the sad and shitty reality is that sales are down and when you're a business, if you can't increase sales you've got to cut costs.
And that means job losses. It fucking sucks and we can have debates all day long about the merits of capitalism and all that, but that's the reality of today. That's the game. Phil is being honest and up front here, it's a shitty game but he's playing it and if he wasn't playing it, someone else would.
It's not a contradiction at all. Yes CEOs are the main beneficiary of the system but they're still accountable to shareholders who run on pure capitalism. There's plenty of examples of CEOs trying to do the right thing only to get sued by the shareholders then kicked out of their jobs. Nothing about corporations inherently needs to be done in a capitalist way, except the fact that publicly traded companies are legally required by law to run as capitalistically as possible, and if you don't accept Venture Capital or go public, good luck getting anywhere in this system.
Hell, basically the entire premise of syndicalism is to put workers in control of the workplace and let things naturally evolve from there. Once you remove the core pillar holding capitalism up, everything will fall down one by one like dominos. If you want to see a fraction of how that works just look at places with high unionization compared to ones without and it's like a completely different world.
The perception of profit is a more powerful force than actual profit.
Markets select for profit by simply trimming away the things that don’t make profit.
Boards of directors select for the perception of profit by firing CEOs who don’t provide them with that perception.
These systems are both operating. The companies that don’t make a profit will still die. It’s just that under this system, a company that’s on track to making profit can be redirected by a Board onto a path where they aren’t, because of that second mechanism.