NoA's CEO, Jack Bowser, was an EA vicepresident. Iwata, a game programmer, was succeeded by a banker and then an economist.
All the decisions they make nowdays, including adding more globohomo to their games, can be explained by this
NoA's CEO, Jack Bowser, was an EA vicepresident. Iwata, a game programmer, was succeeded by a banker and then an economist.
All the decisions they make nowdays, including adding more globohomo to their games, can be explained by this
They don't have to make line go up if they pay out dividends.
S corporations even have restrictions on making line go up, and must pay out in most circumstances.
Besides double taxation, dividends are boring and a sign the company peaked and can no longer innovate.
Meanwhile, growth companies are sexy and people get dopamine hits watching line go up, even if that growth resembles cancer than anything sustainable. Plus it gives the C-suite opportunities to pad their stock options before they pull the ripcords to their golden parachutes.
Don't forget mission creep. You can't just excel in your market, you need to excel in every market. If you make great high end sports cars it becomes lets all make mid level sports cars then low level. Sure, you're still in the same game but people at the high end get resentful and move on. Then it becomes "OH. Let's make family cars now!" And now your sports car development suffers.