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Newell: Big companies won't stay relevant

New age of gaming moving too fast for the old giants, says Valve exec

Large games corporations built on traditional production models will not remain relevant in the new age of gaming, Valve president Gabe Newell has warned.

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Speaking on the subject of changes to games production and finance models, Newell said "philosophically I'm a big fan of what Kickstarter and other efforts like it are trying to do".

In a new interview published on The Nerdist, Newell continued: "There are a bunch of different ways that communities can drive what is going to happen, and one of the last pieces is to figure out how the community itself can drive the financing of projects. I actually think that's going to happen regardless [of Kickstarter].

"The earlier [fans] start supporting a project, the greater the results are going to be.

"Entertainment will get better, creators will do better, I think the percentage of control and the amount of money that goes to things like distribution and marketing will fall, and I think that's a fine thing."

In the age where the line between creators and consumers continues to blur, Newell said that companies built for older models won't be able to adapt fast enough.

"I doubt that a lot of the larger corporations will be able to make transitions into the new world."

When asked in the interview how large corporations can remain relevant, Newell said: "I don't think the big companies will. I think the rate of change is too fast for most of them to adapt."

Kickstarter game projects attracted $83 million worth of funding in 2012, according to the crowdfunding network.

A crowdfunding craze has swept the games industry following the blistering success of the Double Fine Adventure game, which in March sought $400,000 and managed to attract $3.3 million in pledges.

Following this was a new wave of Kickstarter game projects, many of them successful.

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