Could he not use the excess profits to pay the employees a massive bonus for the success that they created?
this post was submitted on 15 Mar 2024
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Yes, all a nice retirement fund and they can make the game. Hire some additional people. No need to become a mega corp
I often wonder exactly what the pathway is to a company growing in response to a huge influx of cash.
It seems like a company could simply not let itself be transformed, but it never happens.
Why not? Is it in the nature of people who run companies that they can’t constrain themselves from 10x-ing the staff? Are there Men in Black type folks who show up and start threatening you if you don’t try to grow the company?
I mean generally I think it's cause the people who start these more creative focused companies like video games have a bunch of things they want to do but can't because of money. But when they get lots of money suddenly they're able to do all these cool ideas and hire the staff to make them happy. Then just naturally as companies get bigger they become harder to manage and the CEO who probably was just wanting to do creative stuff now is managing stuff instead so a new CEO comes in and that's when things start to become more profit focused and start to go bad. Or just when the original owners get greedy and take it public to try and make even more money.
Generally that’s true but there are outliers. Valve for example continues to rake it in while not turning immensely shitty. (Not saying they aren’t without issue, but they are vastly better than many others in the industry)
Similarly, the route that Hello Games took. They started off with an unfinished product rushed to market, but took the money made and invested back into NMS, continuing to release big free expansions to this day.
I think a big part is “don’t go public.” As soon as you go public, your dedication is no longer to your product / your customers, but to quarterly growth / gains for shareholders
I wonder if there are other forces analogous to that public stock commitment, even with private stock. When I’ve been in startup circles, I’ve met people who are “money experts” who have like zero conception of what quality is, or even the joy of work. It’s like a blind spot in their mind.
What I want to know is how do these people worm their way into positions of control? Is it a CEO getting invited to rich people dinners and they slowly get talked into what they “have to” do now that they’ve got big money? “Oh you’ve got to hire Dave he’ll help you navigate this money thing” and then Dave is soulless ghoul?
Even if they gave every employee a ¥10,000,000 bonus, they would still have ~95% of the money left over.
10 million yen is only 60k usd, that's a big bonus but not nearly as staggering as your comment implies.
Okay so make it ¥200,000,000
Windfalls like this cannot be taking lightly and need to be approached strategically. It depends heavily on tax laws and employee finances overall.
Some common got rich quick concerns off the top of my head: Could accidentally knock people into a higher tax bracket and ruin their finances long term for short term gain. Could accidentally give someone collateral to take out a massive loan they cannot afford long term. Could make someone in a low income area a target before they have a chance to move out. Could accidentally get double taxed by doing the payout incorrectly because they're not practiced with handling this much money. Could overinvest it all back into the company and burn too brightly negating all their success. Doing nothing and simply using it as cash reserves is better than making a foolish mistake and ruining it for themselves.
These are all ludicrous.
Could accidentally knock people into a higher tax bracket and ruin their finances long term for short term gain.
This makes zero sense. Read up on how tax brackets actually work. Hitting higher tax brackets doesn't mean your existing income is taxed at the higher rate. No "ruining."
Could accidentally give someone collateral to take out a massive loan they cannot afford long term.
Wtf is this paternalistic BS. They could buy drugs or guns too!! 😱
Doing nothing and simply using it as cash reserves is better than making a foolish mistake and ruining it for themselves.
Nah. Pay people.
Could accidentally give someone collateral to take out a massive loan they cannot afford long term.
Wtf is this paternalistic BS. They could buy drugs or guns too!! 😱
“Paying people more would be irresponsible of us. The poors would be burdened with the responsibility of having too much money! It would destroy them!”
with the responsibility of having too much money! It would destroy them!
It often does, seen it firsthand. Hell, I doubled my income and benefits from last job to current. Did not manage it well, wasn't prepared, fucked up my credit (though I always pay on time!), never learned about dealing with money.
Also, are you suggesting a Japanese company of software devs are "poors"?! Don't even know how to reply...
This whole thread cements my view that lemmings are a bunch of teens and 20-somethings that have little real-world experience and are angry at what their generation is waking up to. (And you SHOULD be angry. But FFS, take a deep breath, take a wider, longer view.)
This whole thread cements my view that lemmings are a bunch of teens and 20-somethings that have little real-world experience and are angry at what their generation is waking up to.
Yes dear, everyone that disagrees with you is just an angry child. 🙄
Posting US tax code like it's the only country in the world and using it as a basis to say something about a Japanese company could be construed as ludicrous, could it not?
And you choose drugs or guns for your example? Again, JAPAN.
Japanese bonuses are heavily taxed and highest salary periods can have big implications on how much one has to pay into the national pension system. The way taxes are paid in arrears can also very easily put people in difficult positions if they aren't financially responsible and happen to suddenly lose their jobs.
No tax system in the world taxes all your income after you reach a higher tax bracket. It's always "all the money above X amount is taxed higher". Even if that would somehow be the case, they got so much cash, you don't even realize how insignificant any type of tax is. They are set for life. They have like a 3 person gaming studio.
Bro said the most wrong thing I’ve seen all week and won’t respond.
Imagine being so brainwashed by your Robber Baron overlords that you literally think: More money = less money. Sad.
AAAAAHHH!!!!
I'm getting too much money!
This shit don't mean nothing to me, man.
At least they can afford lawyers now lol
Money can be exchanged for goods and services
Twenty dollars can buy many peanuts!
I mean it sort of makes sense from a business perspective. The amount of rapid scaling is something you can get wrong very easily.
But yeah a lot of big ass bonus checks is a good start.
Yep, it's an amusing headline which makes it perfect for this community but it's a genuine problem that needs to be navigated carefully. But as far as problems go this is a pretty damn good one to have.
Hey, if they have an issue with too much money, they can always give me some, that I can handle it for sure
So they can afford to make the game free now. It's made back the money that in used to make and it's made a fair profit. No reason for them to continue charging for it outside of greed.
That is straight up the dumbest thing I've read here outside /c/conservative.
That is an interesting comparison
Over on /c/conservative we’re always going on about giving away free stuff
It cost money to develop games. They need some sort of income to do that. Otherwise it's just a short while until the money runs out and the servers shut down. Game stays unfinished and unpolished forever.
They can make it open source.
Make yourself open source.