Editing Valve Corporation (section)

== Structure ==
[[File:Robin Walker 3.jpg|thumb|Designer [[Robin Walker (game designer)|Robin Walker]] at Steam Dev Days 2014]]
Initially, Valve used a hierarchical structure more typical of other development firms, driven by the nature of physical game releases through publishers that required tasks to be completed by deadlines.<ref name="GD2017">{{cite web |url=https://www.gamedeveloper.com/production/gabe-newell-discusses-the-downsides-of-working-at-valve |title=Gabe Newell discusses the downsides of working at Valve |first=Alex |last=Wawro |date=February 17, 2017 |access-date=February 17, 2017 |work=Game Developer |url-status=live |archive-url=https://web.archive.org/web/20170218143333/http://www.gamasutra.com/view/news/291925/Gabe_Newell_discusses_the_downsides_of_working_at_Valve.php |archive-date=February 18, 2017}}</ref> However, as Valve became its own publisher via Steam, it found the hierarchical structure was hindering progress.<ref name="arstech fhalyx" />

After completing ''Half-Life 2'', Valve transitioned to a [[flat organization]]; outside of executive management, Valve does not have bosses, and uses an [[open allocation]] system.<ref>{{cite magazine |url=https://www.bloomberg.com/news/articles/2012-04-25/what-makes-valve-software-the-best-office-ever |title=What Makes Valve Software the Best Office Ever? |date=April 25, 2012 |magazine=Bloomberg |last=Suddath |first=Claire |url-status=live |archive-url=https://web.archive.org/web/20120815155709/http://www.businessweek.com/articles/2012-04-25/what-makes-valve-software-the-shangri-la-of-offices |archive-date=August 15, 2012}}</ref><ref>{{cite magazine |url=https://www.bloomberg.com/news/articles/2012-04-27/why-there-are-no-bosses-at-valve |date=April 27, 2012 |title=Why There Are No Bosses At Valve |magazine=Bloomberg |last=Suddath |first=Claire |url-status=live |archive-url=https://web.archive.org/web/20130904010143/http://www.businessweek.com/articles/2012-04-27/why-there-are-no-bosses-at-valve |archive-date=September 4, 2013|access-date=May 1, 2022}}</ref> Valve's marketing manager, Doug Lombardi, said: "Nobody writes a design doc and hands it to somebody and says, 'you go build this'. It's the teams that are coming up with the ideas and pushing in the directions that they want to take the product."<ref>{{Cite web |last=Farrelly |first=Steve |date=March 28, 2011 |title=AusGamers Valve Software 2011 Video Interview |url=https://www.ausgamers.com/features/read/3037280 |website=[[AusGamers]] |access-date=July 30, 2022 |archive-date=July 30, 2022 |archive-url=https://web.archive.org/web/20220730134402/https://www.ausgamers.com/features/read/3037280 |url-status=live }}</ref> This approach allows employees to work on whatever interests them, but requires them to take ownership of their product and mistakes they may make, according to Newell. Newell recognized that this structure works well for some but that "there are plenty of great developers for whom this is a terrible place to work".<ref name="GD2017" /> Following the difficult development of ''Half-Life 2'', Newell said he became "obsessed" with improving Valve's [[Work–life balance|work-life balance]].<ref name="Crossley-2011" />

Although Valve has no bosses, some employees hold more influence due to seniority or relationships. De facto project leads became "centralized conduits" for organization and sharing information, and decisions are made collectively. Valve uses a process named Overwatch to gather feedback from senior members, which teams may use or ignore.<ref name="Keighley-2020"/><ref name="Crossley-2011" /> 

The success of Steam means that Valve is not dependent on the success of its games.<ref name="Macgregor-2023">{{Cite news |last=Macgregor |first=Jody |date=2023-01-27 |title=Valve's unusual corporate structure causes its problems, report suggests |language=en |work=PC Gamer |url=https://www.pcgamer.com/valves-unusual-corporate-structure-causes-its-problems-report-suggests/ |access-date=2023-09-24}}</ref> The lack of organization structure has led to project cancellations, as it can be difficult to convince other employees to work on them.<ref name="layoffs">{{cite magazine|last=Petitte|first=Omri|date=February 13, 2013|title=Valve lays off several employees in hardware, mobile teams &#91;Updated&#93;|url=https://www.pcgamer.com/valve-layoff-hardware-mobile/|url-status=live|archive-url=https://web.archive.org/web/20220220145443/https://www.pcgamer.com/valve-layoff-hardware-mobile/|archive-date=February 20, 2022|access-date=May 1, 2022|magazine=[[PC Gamer]]}}</ref><ref name="yanis">{{cite web|last=Varoufakis|first=Yanis|author-link=Yanis Varoufakis|date=August 3, 2012|title=Why Valve? Or, what do we need corporations for and how does Valve's management structure fit into today's corporate world?|url=http://blogs.valvesoftware.com/economics/why-valve-or-what-do-we-need-corporations-for-and-how-does-valves-management-structure-fit-into-todays-corporate-world/|url-status=dead|archive-url=https://web.archive.org/web/20120807023528/http://blogs.valvesoftware.com/economics/why-valve-or-what-do-we-need-corporations-for-and-how-does-valves-management-structure-fit-into-todays-corporate-world/|archive-date=August 7, 2012|access-date=August 12, 2012|publisher=Valve Economics}}</ref><ref>{{cite magazine|last=Hern|first=Alex|date=August 3, 2012|title=Valve Software: free marketeer's dream, or nightmare?|url=https://www.newstatesman.com/business/economics/2012/08/valve-software-free-marketeers-dream-or-nightmare|url-status=live|magazine=New Statesman|archive-url=https://web.archive.org/web/20120805051647/http://www.newstatesman.com/blogs/economics/2012/08/valve-software-free-marketeers-dream-or-nightmare|archive-date=August 5, 2012|access-date=May 1, 2022}}</ref> In 2020, Valve acknowledged that this made it difficult to gather momentum and had slowed their output during the 2010s.<ref>{{Cite web|last=Says|first=Germinalconsequence|date=July 10, 2020|title=Half-Life: Alyx Helped Change Valve's Approach To Development|url=https://www.kotaku.com.au/2020/07/half-life-alyx-helped-change-valves-approach-to-development/|access-date=July 19, 2020|website=Kotaku Australia|language=en-AU|archive-date=July 19, 2020|archive-url=https://web.archive.org/web/20200719161845/https://www.kotaku.com.au/2020/07/half-life-alyx-helped-change-valves-approach-to-development/|url-status=dead}}</ref> Their VR projects and ''Half-Life: Alyx'' became a turning point, setting short-term studio-wide goals to focus the company. According to Walker, "We sort of had to collectively admit we were wrong on the premise that you will be happiest if you work on something you personally want to work on the most."<ref name="arstech fhalyx">{{cite web | url = https://arstechnica.com/gaming/2020/07/valve-secrets-spill-over-including-half-life-3-in-new-steam-documentary-app/ | title = Valve secrets spill over—including Half-Life 3—in new Steam documentary app | first = Sam | last = Machkovech | date = July 9, 2020 | access-date = July 10, 2020 | work = [[Ars Technica]] | archive-date = July 19, 2020 | archive-url = https://web.archive.org/web/20200719061754/https://arstechnica.com/gaming/2020/07/valve-secrets-spill-over-including-half-life-3-in-new-steam-documentary-app/ | url-status = live }}</ref>

In January 2023, ''[[People Make Games]]'' released a report on Valve's corporate structure and culture, based on interviews with several current and former employees. They found that Valve's flat structure and [[Stack ranking|stack-ranking]] compensation system created a poor release record and a lack of employee diversity.<ref name="Macgregor-2023" /><ref>{{Cite web |last=Benfell |first=Grace |date=January 26, 2023 |title=New Report Claims Valve's Structure And Work Culture Is Hostile To Diversity |url=https://www.gamespot.com/articles/new-report-claims-valves-structure-and-work-culture-is-hostile-to-diversity/1100-6510857/ |access-date=2023-09-24 |website=GameSpot |language=en-US}}</ref> In 2024, ''Forbes'' estimated that Newell owned 50.1% of Valve, with the rest owned by employees.<ref name="Pastis-2024a">{{Cite web |last=Pastis |first=Stephe |date=2024-12-06 |title=How Valve founder Gabe Newell turned ''Half-Life'' into a nearly $10 billion fortune |url=https://www.forbes.com.au/covers/magazine/how-valve-founder-gabe-newell-turned-half-life-into-a-nearly-10-billion-fortune/ |access-date=2024-12-11 |website=[[Forbes Australia]] |language=en-US}}</ref>

As part of Wolfire Games' lawsuit over Steam policies, case documents revealed details related to Valve's employee structure. Starting with 60 employees in 2003, Valve grew to around 350 employees around 2012 and remained around this number through 2021. Up through 2010, the employees were categorized in three areas, administration, game development, and Steam development; in 2011, a hardware development category was added.<ref>{{cite web | url = https://www.theverge.com/2024/7/13/24197477/valve-employs-few-hundred-people-payroll-redacted | title = Here's how much Valve pays its staff — and how few people it employs | first = Jay | last = Peters | date = July 13, 2024 | accessdate = July 13, 2024 | work = [[The Verge]] }}</ref>

===Valve time===

{{Anchor|Valve Time}}
{{Redirect|Valve Time|timing of the opening and closing of valves|Valve timing}}

'''Valve time''' is an industry term used jokingly with game releases from Valve, used to acknowledge the difference between the "promised" date for released content stated by Valve and to the "actual" release date; "Valve Time" includes delays but also includes some content that was released earlier than expected. Valve has acknowledged the term, including tracking known discrepancies between ideal and actual releases on their public development wiki<ref>{{cite web |url=http://developer.valvesoftware.com/wiki/Valve_Time |title=Valve Time |publisher=Valve |access-date=June 9, 2010 |url-status=live |archive-url=https://web.archive.org/web/20100618121700/http://developer.valvesoftware.com/wiki/Valve_Time |archive-date=June 18, 2010}}</ref> and using it in announcements about such delays.<ref>{{cite magazine |url=https://www.wired.com/2010/06/portal-2-delay// |title=Valve Delays Portal 2 to 2011 |magazine=[[Wired (magazine)|Wired]] |first=Chris |last=Kohler |date=June 9, 2010 |access-date=May 1, 2022 |url-status=live |archive-url=https://web.archive.org/web/20100612142546/http://www.wired.com/gamelife/2010/06/portal-2-delay |archive-date=June 12, 2010}}</ref><ref>{{cite web |url=https://www.shacknews.com/article/66536/portal-2-delayed-hits-stores |title=Portal 2 Delayed to 'The Week of April 18' |first=Xav |last=de Matos |work=[[Shacknews]] |date=November 18, 2010 |access-date=May 1, 2022 |url-status=live |archive-url=https://web.archive.org/web/20101120011239/http://www.shacknews.com/onearticle.x/66536 |archive-date=November 20, 2010}}</ref> Valve ascribes delays to their mentality of team-driven initiatives over corporate deadlines.<ref name="faliszek valvetime">{{cite web |url=https://www.gamasutra.com/view/news/27296/Valves_Faliszek_Team_SelfDetermination_Drives_Left_4_Dead_2_DLC_Strategy.php |title=Valve's Faliszek: Team Self-Determination Drives Left 4 Dead 2 DLC Strategy |first=Chris |last=Remo |date=February 24, 2010 |access-date=May 1, 2022 |work=Game Developer |url-status=dead |archive-url=https://web.archive.org/web/20100509090347/http://www.gamasutra.com/view/news/27296/Valves_Faliszek_Team_SelfDetermination_Drives_Left_4_Dead_2_DLC_Strategy.php |archive-date=May 9, 2010}}</ref>

=== Playtesting ===
Valve [[playtest]]s its games extensively from the beginning of development,<ref name="Remo-2008" /> and iterates based on the results.<ref name="Keighley-2020"/> Its website states: "We believe that all game designers are, in a sense, [[experimental psychologist]]s."<ref name="Keighley-2020" /> The Valve writer [[Chet Faliszek]] said he initially blamed testers when they failed to engage with designs as expected, but changed his mind when multiple testers had the same problem: "By the third or fourth time, all of a sudden you're realizing, 'I'm an idiot. This is pretty obvious this doesn't work. It's not their fault, it's our fault.'"<ref name="Remo-2008">{{Cite web|last=Remo|first=Chris|title=Valve's Faliszek: Playtesters Aren't Idiots, It's You|url=https://www.gamedeveloper.com/pc/valve-s-faliszek-playtesters-aren-t-idiots-it-s-you|url-status=live|access-date=May 1, 2022|website=Game Developer|date=August 7, 2008|archive-date=May 2, 2022|archive-url=https://web.archive.org/web/20220502011646/https://www.gamedeveloper.com/pc/valve-s-faliszek-playtesters-aren-t-idiots-it-s-you}}</ref> He gave an example from the development of ''Left 4 Dead'', wherein a [[Texture mapping|texture]] change caused every tester to miss a ladder and become stuck.<ref name="Remo-2008" />

Walker said playtesting helped Valve maximize the experience for players. For example, when something exciting occurs by chance during a playtest, the developers attempt to have it occur for every player.<ref name="Bramwell">Bramwell, Tom (September 8, 2007). "Opening the Valve". ''[[Eurogamer]]''. Retrieved December 15, 2023.</ref> Newell contrasted this approach to that of [[Warren Spector]], whose open-ended games are designed to be replayed with different outcomes: "You spend all of this time to build stuff that most players will never ever ever see ... If only one per cent of your customers see this cool thing that takes five per cent of your development budget, that's not a good use of resources."<ref name="Bramwell" />