> Obviously, the time and labour of Valve's employees is worth more than what Valve is paying them, otherwise Valve would not be turning a profit. I'm assuming that employees really have 100% work time for their projects as you claim. Then in essence Valve is providing facilities and connections (to other smart employees) in return for the lion's share of the labour profit.
I think you're underestimating the value of those facilities and connections. That is the overhead.
Also, the time and labor is valued higher because they're employed together; that same time and labor would not be as valued outside the company.
I think you're underestimating the value of those facilities and connections. That is the overhead.
Also, the time and labor is valued higher because they're employed together; that same time and labor would not be as valued outside the company.