That’s a popular quip, but it’s just not true. If it were, Unity would lay off most of its staff and only do bug fixes. That way they’d save a ton on salary, and they probably wouldn’t lose any customers for a couple years until they fall far enough behind, so their quarterly financials would look great for about a year until they started losing customers.
This isn’t that. This is just a classic example of the leadership not understanding the business they’re in and trying to maximize profit. I think they overestimate the value of their product and what their customers are willing to pay for.
That’s a leadership issue though. The CEO’s job is to communicate expectations to the board and balance long term and short term returns.
Except a lot of companies and investors don’t really care about long term profit anymore anyway.
That’s a popular quip, but it’s just not true. If it were, Unity would lay off most of its staff and only do bug fixes. That way they’d save a ton on salary, and they probably wouldn’t lose any customers for a couple years until they fall far enough behind, so their quarterly financials would look great for about a year until they started losing customers.
This isn’t that. This is just a classic example of the leadership not understanding the business they’re in and trying to maximize profit. I think they overestimate the value of their product and what their customers are willing to pay for.