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Can somebody explain why game makers don't start their own companies together? (programming.dev)

submitted 6 months ago by onlinepersona@programming.dev to c/gaming

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It seems like every other week a game studio is massively laying off employees; sometimes after years of development. What I'm reading is that it's a quick way to lower expenses and pad the investors' pockets, flooding the market with developers and reducing their value, to then hire them back a few months later at lower salaries.

So, what's holding back gamedevs from banding together to either unionize or start their own companies with better conditions that the purely money-driven studios? Why aren't they trying to be better? Nobody willing to invest in them? Does starting a company together mean they will now be the bosses who have to answer to the investors, ensure returns, and fire employees? Is the world just an entire shit-cake?

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[–] HaywardT@lemmy.sdf.org 1 points 6 months ago (1 children)

To me the opposite appears true. Beyond economy -of-scale can you give me some examples?

[–] novibe@lemmy.ml 3 points 6 months ago (1 children)

Like the literal law. In most places it’s a much more involved and expensive process to even open a coop compared to a traditional private company. It takes more paperwork, more fees, more capital funds etc. Also, getting investors in (when they can’t own the coop, as they are not workers) or even loans from private or state banks/institutions is much harder. There are several programs incentivising people to open private companies, giving them tax credits, making the application and approval process easier, giving access to funds and education etc. How many there are for coops? In most places around the world there are 0. In what ways does it appear the opposite to you..? Like this all seems very self-evident to me.

[–] HaywardT@lemmy.sdf.org 2 points 6 months ago (1 children)

I don't know where you are located. I am in the US and a co-op is just a corporation so all the things that apply to a private corporation apply to a co-op. When applying for grants there are no differentiators that I can think of. One advantage for a co-op here is that there are no passive investors.

[–] novibe@lemmy.ml 2 points 6 months ago (1 children)

For my city, just for a very specific example, it takes less than one afternoon and 80 bucks total (no fees and almost no capital fund requirements) to open a corporation. It takes weeks if not months to open a coop and it costs 2500 bucks PER member.

I don’t know the specifics of all cities and states everywhere in the world. But the system is built to benefit private corporations much more, as it’s a capitalist system where owning capital equals power, and workers are a commodity.

[–] HaywardT@lemmy.sdf.org 1 points 6 months ago (1 children)

Can you tell me what city this is? For me this would be reason enough to move.

[–] novibe@lemmy.ml 1 points 6 months ago

Sorry I would rather not :/