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Also look closely into the screenshot you sent. most of them have 0 active users. meaning: they are ood and no competition. might be crazy to think, that Tesla complains that the Flocken Elektrowagen once existed and sees it as competition.
The social need thing seems so be a you thing. Are you building an open office in which the persons can talk to each other? are you providing food and an opportunity to sit while eating? if you only build closed cubicles it's the same thing as in reality - pretty much no interaction which is pretty lonely. and of course they don't want to work with another team in the same room. I give you the point, that it would be nice if the game would recognize that they are working on the same project - but the game doesn't and maybe in the future the teams won't. I would think that this might be a distraction in reality, too.
Also - to close this point - these are minor complaints even on hard. Get a team-lead, let them handle the problems and they are pretty much gone.
I would suggest that you look at something like city game studio. maybe this would be more to your liking? still not easy in the beginning but maybe more your cup of tea?
2. You are aware that you can create 4 Founders at the beginning ? The game was intended to be played like others, with one founder building the company from the ground up, however Software Inc. is the most complex game of this type and it's really hard to start with only one (even on low difficulty, especially if you are a new player). With 4 founders, you have 4 employees that dont get sick, take wc break, lunch break or vacation. They are more than enough to build your company from scratch to 4* Business reputation competitor with few millions on the market. before you actually start designing Software.
3. Working in the IT I can vouch that multiple teams working in a single open space office is really distracting (unless there is iron-hand discipline). This problem in game is easy solvable if you make 1 hour between two shifts, so the ones late from first can still finish up work until the second team arrives, and no notification of this kind ever. I run with two shifts 02-12 and 13-23, but you can even go with 05-12 13-20 21-04, and there will be no complaints.
4. For socialization, you need to have at least one kitchen, where all the employees will go for lunch and will socialize during it. It even works with teams of one, that don't have contact with anybody in the office, tested.
4. As for competition, I totally agree what ZaeRoe wrote. Also, there is a mod where you can start at 1970, but there is no OS, nothing can be developed until at least one is released, and also wait for 2d/Audio tool. The AI is (still) not that great, and I agree that the polishing of it should be done before final release. Do contract until you have several millions and can support one design/ one development team and then start working on your own Software. It will give time for AI OS to gather Active users, since more active users -> more sales -> more profit.
https://imgur.com/a/Xbygp9E
That's on impossible mode. Just design 1 tier, develop, release. Dont waste time