• PowerCrazy@lemmy.ml
    link
    fedilink
    English
    arrow-up
    31
    arrow-down
    1
    ·
    8 months ago

    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.

    • slaacaa@lemmy.world
      link
      fedilink
      arrow-up
      22
      ·
      edit-2
      8 months ago

      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.

    • Kushan@lemmy.world
      link
      fedilink
      English
      arrow-up
      4
      ·
      8 months ago

      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.

    • intensely_human@lemm.ee
      link
      fedilink
      arrow-up
      1
      ·
      8 months ago

      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.