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Exactly. You think Nintendo prioritizes quarterly growth at the expense of everything else? No. Companies are not mindless money machines, they're run by peopl
by Andrex 3y ago
Exactly. You think Nintendo prioritizes quarterly growth at the expense of everything else? No.
Companies are not mindless money machines, they're run by people who make decisions. I feel like post-80s Americans totally lost the concept that a company can exist for more than five years and without constantly chasing a buyout or merger for an easy exit.
We need more founders to start companies with the intention of keeping them going 10, 20, 30+ years. Just my two cents.
- ehnto 3y agoStartups are an interesting case since the incentives are not aligned to building long term businesses. Instagram being a startup, their user's goals were aligned with their own while they were growing. The happier the user the better the growth metrics, the better they are playing the VC game. Now that they need to be solvent, they need to balance two goals, user happiness and profit per user. If you aren't contributing to ad rev or data acquisition you're no longer aligned with their goals, so log in or bugger off is the message we get. I think there is something to be said about how a business will form as well, it's unlikely a business that formed all it's goals and policies in a glut of money and a growth mindset, never having to make the dollars make sense, will suddenly pivot to profitability without turbulence once the bills come due.