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I had a hunch there would be a layoff. Or maybe just a fear. Article says it may be the hardware and android departments that were hit with the layoffs. If that's true, there might have been issues with their mobile client and any console they were planning.
My guess is Valve is trying to prioritize getting a stream of revenue, and I think they'll push the Market and work on that faster. If they can get bring into the system (and get a cut of) all the outside trading that's going on with TF2, Spiral Knights, Dota2, and partner with even more F2P games they'll have money and time to work on developing their own games.
"A reliable source has told us Valve's director of business has departed the company, [...]
Holtman acted as one of the company's primary points of contact for devs using Valve's digital distribution platform Steam, playing a key role in developer relations at the studio, and has worked at the development giant since 2005."
What I don't understand is why the hardware branch was getting hit, I thought steam was focusing manpower on hardware to release steambox. I can completely understand android though, that app sucked across the board.
"Gamasutra has also reported up to 25 employees may have also been let go from the company, mainly in the hardware and Android development divisions."
-Moby Francke: Character designer (HL2) Lead Designer (TF2)
-Keith Huggins: Ex-Weta Workshop Employee (One of Gollum Animators)
-Bay Raitt: Ex-Weta Workshop Employee (Lead of Source Filmaker)
-Matthew Russell: supervising animator on "The Adventures of Jimmy Neutron"
No, Valve invested in other companies for the hardware. I don't think they were working on their own, specific, hardware.