Posted on October 11, 2007,

Gabe Newell: PlayStation 3 a Waste of Time

gabe-newell.jpgGabe Newell, co-founder of Valve, has not been the biggest proponent of the PlayStation 3. During a recent interview with Edge, he really ripped into the PS3 when the subject came up, going so far as to suggest it’s a waste of time.

Edge: A while ago you said that you thought Sony should do a ‘do-over’ with PS3. Do you still think that?

GN: Absolutely. I think [PS3 is] a waste of everybody’s time. Investing in the Cell, investing in the SPE gives you no long-term benefits. There’s nothing there that you’re going to apply to anything else. You’re not going to gain anything except a hatred of the architecture they’ve created. I don’t think they’re going to make money off their box. I don’t think it’s a good solution.

Ouch. Gabe also goes into a fairly technical discussion about his thoughts on multicore processors and a few hints at to what Valve has in store for Steam. While I’m not inclined to agree that the PS3 is a waste of time, it’s clear that, at this point in time, publishers are having trouble swallowing the development costs for PS3 games.

Read part two of the interview

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29 Comments on Gabe Newell: PlayStation 3 a Waste of Time


On October 11, 2007 at 11:00 am

I will be interested to see what he has to say about the cell having no long term benefits in a few years time because his argument would have been equally valid if levelled at the PS2 7 years ago. He is obviously under the impression that no devs made any money on that console.


On October 11, 2007 at 11:15 am

That’s because he sleeps with a 360 and some Micro executives on a fat pile of partnership money.

Ron Whitaker

On October 11, 2007 at 11:38 am

I don’t know about the money, but I do know that Ubisoft devs have said point blank that there is no greater difficulty programming for the PS3, just that it’s a different system to learn.

Personally, I like my PS3. I also like my 360. I think they’re both good. It’s just sad that development differences mean some great games stay exclusive to one or the other.

Let’s face it, the 360 is basically just like developing for PC, hence the bevy of previously PC based titles appearing on that platform.


On October 11, 2007 at 11:41 am

Since Gabe Newell is an expert on what system will make money, let’s take a look at The XBox360;

Microsoft is the King of Cash. They can buy almost anything (Take 2) and anyone (Paramount execs) on the planet. It seems the only thing Microsoft can’t buy is 1st place in the gaming industry. No matter how much they spend, no matter how many loyal fanBoys they collect along the way, they just can’t seem to get over the hump. The Wii hump seems insurmountable for now and the PS3 hump has the potential of eclipsing even the likes of the PS2 in a few years.

It seems like every decision Microsoft makes is not only wrong, that would be an understatement. Their decisions are “Galactically Wrong” if there is such a thing. Just this year they paid $50 million dollars to Take 2 for exclusivity rights to GTAIV content that no one will see until Q4 2008 at the earliest.
Next was the $150 million dollars that they handed over to Paramount which basically says, Paramount will release their movies on HD-DVD Format and not Blu-Ray Format for an 18 month period of time. In this particular case, Microsoft is hoping that within the next 18 months, the 2 million people that went out and bought Blu-Ray players & PS3s will switch over to HD-DVD. Uhmmm… No! That won’t happen.

Last, but certainly not lease is Microsoft’s $1.5 Billion dollar attempt to rid itself of the dreaded “Red Ring of Death” through the likes of the Falcon Mother board and the 65nm CPU. Well… to all of our surprise… that plan didn’t work either. The first reports of the RROD have been coming in. It seems that the XBox360 Halo 3 edition, which is fitted with the new Falcon MB & 65nm CPU is overheating & malfunctioning. When was the Halo 3 Launch??? It was 1 Week ago. Let me repeat that just incase you think you read it incorrectly. The NEW Halo 360 systems that came out 1 week ago are already malfunctioning! (

Now that we have that cleared up, let’s wrap up this blog with some simple math. The XBox Division started this year off being ruffly $5.7 Billion in the red (as reported by Forbes). Now add the $50 million dollars flushed down the Take 2 Toilet + the $150 Million that was flushed down the Paramount toilet (assuming the 2 million people that own Blu-Ray players don’t switch to HD-DVD) + the 1.5 Billion used to NOT fix the Red Ring of Death problem = almost $8 Billion dollars in the red. OUCH!

Wait it gets worse… Nintendo has the inexpensive console market nailed down with the Wii, and Sony has the High-End market nailed down with the PS3. So where does that leave Microsoft? It leaves them holding an obsolete, DVD playing, non-HD console that is neither High-End like the PS3 nor Cheap and Fun like the Wii and will most likely malfunction out of the box. It’s like watching a real life 3 Stooges Movie right in front of your eyes. For Microsoft though, this can’t be funny.

As far as the PS3 turning a profit??? The PS3 is following in the same foot steps at the PS2, and we all know how that turned out.

Why would anyone ask Gabe Newell his opinion on PS3 or even interview him at all for that matter. It is obvious he makes absurd, blanket statements that only display his ignorance and lack of knowledge on the subject.


On October 11, 2007 at 11:44 am

Im no fanboi, nor am I a big console fan but when I bought my PS3 (first console ever) I thought I was putting my money into something worthwhile and to this day I still think its a great investment. Some great games are coming our way and I can’t wait for those to prove every fat , know-it-all,like this guy, wrong.


On October 11, 2007 at 12:40 pm

who cares for either side, they are game systems. Both moneysoft and sony will compete for players. Its true both systems are great in their own way. Some people like apples, some like oranges.

These comments from this valve guy dont seem correct. I dont think Sony will do-over, they are true to their product and will stick by it. And as for superdynamites comments, that is true microsoft is loosing money, so is sony, both companies have deep pockets and will continue to do this until one gives up the race. The true winner here of all Nintendo with their inexpensive yet enjoyable Wii.


On October 11, 2007 at 1:20 pm

Xboxlenny said: “that is true microsoft is loosing money, so is sony”

Completely different situation. Microsoft lost about $240 for every Xbox they sold and that includes all the profit they made from peripherals, Xbox Live and games. Overall Sony have made huge a profit from gaming while Microsoft have made a huge loss. Sony normally make a loss for a year or so of a new consoles life then they make massive profit. The PS3 is looking like doing exactly the same thing.

“The true winner here of all Nintendo with their inexpensive yet enjoyable Wii.”

And Sony who have made huge profits and have the largest home console market share. Not sure why you forgot them.

The only one of the 3 that’s lost money in console gaming is Microsoft.


On October 11, 2007 at 1:57 pm

I guess that loss on the manufacturing PS3s dont count? those exploding batteries from the Sony laptops? and other things i dont follow or care about like you do, I dont care for statistics or numbers you have, i am not defending anyone here like you seem to be such a sony fan.

I guess those Billions and billions that microsoft makes from there unlited copies of Windows what ever, and Office what ever, etc….. Xbox and PS3 both are supposed at a loss to manufacture upon what ever else things cost.

But as for both game divisions they both loose money on their consoles sold alone. So your facts and figures are not the point. its PS3 sales here, not PS2 sales, if thats the case, i can go back to the 80′s and quote the original “NES” from nintendo funded them on Wii profits. ????? the chewbacca defence, it just dont make sence.


On October 11, 2007 at 3:13 pm

@Xboxlenny. WTF have laptop batterys got to do with console gaming? WTF has Windows got to do with it? Both companys are making a profit overall every year but we are talking about GAMING DIVISIONS.




Sony are currently losing mony from gaming because it is the launch of a new console which is normal. This is what Sonys game division was doing in the same period that the Xbox lost a total of $5.7bn

2004-2005 $407 profit
2003-2004 $800m profit
2002-2003 $1bn profit
2001-2002 $486m profit
2000-2001 $110m loss due to launch of PS2

In no year since they entered the console market have Microsoft made money from gaming. They have lost billions.

Can you seriously not understand the difference between the incredible financial success of Sony’s gaming division and the total ing mess of Microsoft’s?


On October 11, 2007 at 11:32 pm

spoken like a true fanboy, keep those stats coming, which no one cares. A company is based on over all sales and business. Over all if you own a PC chances are you are using a microsoft product.

Over all Moneysoft is king. personaly i dont care for your facts. keep up the good work.

havoc of smeg

On October 12, 2007 at 6:20 am

i dont hate the PS3 so please dont take this as a bashing, but at one point, i considered getting a PS3 before it came out in the UK, but then i here that the console on its own would cost over £400 and that games MIGHT cost £70, and i wondered if it would be worth it. then i here it will be delayed by at least 4-5 months after it had been already delayed once so i decided that it probably wont be worth it, so instead i got my self a xbox 360 with was already out and had a few good looking games already released.

i got one, and you know what? to this day, i dont regret it. given how many games and exclusives the 360 has by comparison. not not mention the price! just for the console! :!:

like i said im not bashing the PS3, but it has hurt itself when it comes to price and game selection.


On October 12, 2007 at 8:02 am


Its not spoken like a true fan by, its spoken by someone who isn’t ignoring facts. This article is about the success of Sony’s new console not their TVs or Laptops. Sony are more successful at gaming than Microsoft. I don’t know why that pains you to hear but just admit it instead of trying to ignore it.

Financially the Xbox division of Microsoft is a total abject failure.

havoc of smeg said

“i got one, and you know what? to this day, i dont regret it. given how many games and exclusives the 360 has by comparison. not not mention the price! just for the console!”

I’m very happy for you. Now please tell me about the exclusives the 360 has for next year, or the year after that are better in comparison to the PS3.

I’ll make things easier for you. These are some of the PS3 exclusives for the coming year or so:

Metal Gear Solid 4: Guns of the Patriots
Gran Turismo 5
Tekken 6
Final Fantasy 13
Ratchet & Clank Future: Tools of Destruction
Time Crisis 4
Jak and Daxter: The Lost Frontier
Killzone 2
The Agency
The Getaway 3
LA Noir
Uncharted: Drake’s Fortune

Here are the 360 ones I can find:

Banjo-Kazooie 3
Dark Messiah of Might & Magic: Elements
Dance Dance Revolution Universe 2
Fable 2
Kingdom Under Fire: Circle of Doom
Lost Odyssey
Mass Effect
Ninja Gaiden 2
Too Human

There are a few promising looking games there but I sure popular opinion would agree that the PS3 future lineup looks far stronger.

As far as I can see there are currently 81 exclusives released or in production for the 360 but there are 95 released or in production for the PS3 which is pretty significant seeing as the PS3 has been out for a year less.


On October 12, 2007 at 9:32 am

It sure dont pain me at all. I dont take care for any companies stats or figures, you always posting this garbage only shows how dedicated you are to this and how much a fanboy you are.

I will never be able to waste my time searching for statistics and facts. because no one cares. if a person wants to read those, they will look themselves. All im saying is I dont care how sony does or microsoft does. I only do this because it gets you on the rant and its enjoyable for me to see you get all bent out of shape when someone give their oppinion thats different than your almighty Sony company or the umlimited all knowing king of devices PS3.

Honestly i only speak my oppinion on something and thats all i have to say on it. then you get all worked up and go on a rant on stats to prove a point thats different. If its against sony for anyone you get all defensive, its quite entertaining, thanks for making my day. keep up the good work.


On October 12, 2007 at 11:35 am

“you always posting this garbage”

That sums you up completely. Its called fact. Truth. Reality. I’m sorry it doesn’t fit in with your idiotic Sony bashing and I’m sorry I continually bring your moronic rants back down to earth with cold hard facts but seriously. there is only so long you can go on ignoring the truth isn’t there?

I say Sony are more successful at gaming. You say they aren’t. I prove they are. You ignore the proof.

You say the PS3 is selling badly. I prove it isn’t. You ignore it.

Seriously, are you 10 years old or something?

“Honestly i only speak my opinion on something and that’s all i have to say on it”

Sorry to break this to you but considering most of your opinions seem to have no basis in reality you might want to consider the possibility you might be an idiot.


On October 12, 2007 at 12:19 pm

Norbit I’m sorry but the 360 lineup looks FAR more promising than the PS3.

Fable 2. Mass Effect. Lost Odyssey. Too Human. Those are bound to be some of the best selling games this fiscal year.

havoc of smeg

On October 12, 2007 at 1:02 pm


your right, just skimming, it there are a couple of good pedigree PS3 games on your list.

that said though, i just cant ignore the £425 price tag for the PS3 on its own.
plus i think sesmu does have a point, some of your listed 360 games do look promising.

in short, i’ll probably leave it for a while.


On October 12, 2007 at 1:28 pm

“Norbit I’m sorry but the 360 lineup looks FAR more promising than the PS3.”

Don’t be sorry, its your opinion based on your personal gaming tastes. I guarantee you that the PS3 lineup will shift far more units and sell far more consoles however and seeing as I don’t own either console I’m speaking from a position of complete neutrality. The PS3 lineup is far, far stronger. There are 2 franchises in there that have sold over 50m units and 2 that have shifted over 20m.

I would expect Metal Gear Solid 4 and Final Fantasy 13 to outsell each of those games individually while its more than possible that Gran Turismo 5 will outsell all 4 of them put together, after all its games sell on average over 11m units per episode which is over 4m more than Halo does. Then there is LittleBigPlanet which I have a hunch will go on to be the defining game not only of the PS3 but of this generation of consoles. I have never seen such universal praise and downright love for a game as I have for that. It has the potential to be absolutely massive.

There are some true system selling titles being released on the PS3 over the next year. While its certainly true that the 360 has some promising titles being released which might shift a million or 2, the vast majority of people who are eagerly awaiting them are current 360 owners. I’ve never read anyone say ‘I will buy a 360 when Mass Effect/Too Human/fable 2 is released’.

With that PS3 lineup it is highly possible that Sony will shift another 10m+ PS3s between now and the end of 2008.


On October 12, 2007 at 1:30 pm

@havoc of smeg

The £425 price tag has now dropped to £350 and there is a new lower spec £299 version also.


On October 12, 2007 at 1:32 pm

Leaving all the fanbot rubbish aside. Whatever credibility this guy had left just went out of the window. In any industry, there are 2 unwritten rules.

1) Never diss your competitors publicly.
2) Never burn bridges with industry folk you work with or may do in future.

Because these things tend to come back and bite you on your ass.


On October 12, 2007 at 1:34 pm

i see alot of titles on the 360 list norbit made that i know will hit the PC not too long after they launch 1 years tops would be my guess. i also know that i will be buying a PS3 as soon as GT5 comes out, at which point i will be giving my 360 to my less fortunate brother :D


On October 12, 2007 at 1:45 pm

WOW Norbit, it amazes me your dedication to defend something and beleive i have such dedication to an Xbox 360 or bash a PS3 sales?? I made no comment on how

Posting sales figures for companies? each post on any topic produces a massive list of all the games Sony will produce in the next year and a half.

Thinking because someone has a different oppinion or would like something different causes you to utterly defend sony? To critize another person or personally attack their oppinion for being different? Every game you defend sucks if its not Sony, or not a game for a sony product?

There are great games for all systems, and all systems have their own abilities just because they all arent for the PS3 dont mean every thing else sucks or sony have a something better out.

i think you should ask your self this question?”Seriously, are you 10 years old or something?”

havoc of smeg

On October 12, 2007 at 3:13 pm


thanks for info. take it the £325 is for the 60gig console and £300 for the new 40gig setup?


On October 18, 2007 at 1:03 am

Norbit needs to read this editorial and get a grip.

Phil Migrowen

On October 18, 2007 at 2:12 am

Gabe Newell must be right about the PS3 because if there’s anyone who’s an expert at wasting time it’s Gabe Newell.


On October 18, 2007 at 5:21 am

@ Jim

lol lol…that editorial is saying: ok, we give up, we accept it, PS3 is better than 360, don’t hurt our feelings any more, We have a cheap box, but at least it plays video games(till the RROD), so..”let’s play and have fun”.


yeaah!! when they have nothing to show that the “Xbox-plz-fix-me” is better, they always avoid the subject with something else.

btw..I heard there’s an Xbox Portable in the works, and they say that thing is gonna make Osama’s life easier and cheap,no bombs , no chemicals , just buy an xbox portable and let it overheat in a plane and b00m! it looks like Micro is the Next-Gen of terrorism.

Happy gaming!!


On October 18, 2007 at 5:31 am

this is for those who still don’t understand how powerful and advanced the PS3 is…

Right now, a cluster of eight interlinked PS3s is busy solving a celestial mystery involving gravitational waves and what happens when a super-massive black hole, about a million times the mass of our own sun, swallows up a star.


On September 27, 2008 at 5:50 am


Yes, because we all know that solving a celestial mystery involving gravitational waves is the most funnest thing in the world…

And after a hard day at work, coming back home to that is something EVERY kids wants to grow up to experience during the hour after dinner and before going to bed….

Errol Speigel

On December 7, 2011 at 10:27 am

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Angelia Rudi

On December 8, 2011 at 3:03 pm

Hehe am I honestly the first comment to this great read?!?