A recently discovered internal study from 2018 conducted by Valve has revealed a remarkable finding: the gaming giant was generating a higher revenue per employee compared to tech behemoths such as Amazon, Facebook, Apple, and Microsoft at that time.
According to the GameDiscoverCo newsletter, which sourced the information from PC Gamer, these findings emerged in connection with a 2021 class action lawsuit filed by Wolfire Games against Valve. The lawsuit alleged anti-competitive practices by Valve, particularly concerning the 30% commission it earned from game sales.
During the discovery phase of the lawsuit, a redacted email exchange among Valve employees surfaced, shedding light on the company’s operational efficiency. The conversation revealed that Valve was operating exceptionally efficiently, surpassing other major companies in terms of revenue per employee, both annually and hourly.
Valve’s Kristian Miller led the analysis, which involved dividing each company’s annual net revenue by its number of full-time employees. This calculation indicated that Valve’s net income per employee exceeded that of Microsoft, Apple, and Netflix. Additionally, when broken down by hour, Valve outperformed Facebook in revenue per employee.
The precise extent of Valve’s lead in revenue per employee remains redacted and unclear. However, considering Valve’s business model has likely remained consistent over the years, it’s reasonable to infer that the company’s efficiency has only improved since 2018.
While it’s uncertain whether this data influenced Wolfire’s case, the revelation underscores Valve’s reputation for frugality and efficiency, traits that have contributed to its success as a leading PC games launcher. As the legal proceedings continue, the significance of these findings remains a topic of interest, highlighting the importance of financial savvy in the competitive landscape of the gaming industry.
