Saints Row developer Volition shuts down after 30 years
(nichegamer.com)
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The days of companies reinvesting profits is long over.
Nowadays, it's all about credit lines and investments.
Then maybe companies deserve to close their doors. Seems like an extremely poor strategy.
It is one of the things that a channel I watch called Valliant Renegade gets a bug up his ass about all the time. His day job is doing financial work, and one of this biggest pet peeves is the push in the last decade or two that all companies should be focused on growth rather than profit. It is why you have this push for constant investment and credit even though companies are losing money hand over fist.
Meanwhile, many of those investors will turn up their nose at a company that had limited growth but made solid profit.
He sees it as the number one reason that so many of the streaming services have failed to make any profit because they must get that growth, which then also causes the drop in quality (that is further made worse by the beliefs of the Hollywood types).
Blame the "education" going on in the business schools these past few decades. MBAs and accountants are fixated on being big and growing bigger, "market share" and "market penetration". It drove one of my business profs wonky, he would constantly ask kids "which would you rather be, a profitable small business or a failing big business?"
"But Doc, big businesses don't fail!" "When's the last time you shopped at Sears, Roebucks?" "Who?" "Exactly."
Seems to me that profit is what funds growth in a not-pants-on-head-retarded organization.
Yes, it is. Which is why he constantly facepalms at other investors and financial types who value growth more than profit, not realizing profit is a lot more indictive of a healthy company worthy of investment than one that has growth.