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Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business' (www.pcgamer.com)

submitted 9 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 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.