So what about SEGA starting to fund a GS franchise? For me, as a customer, it only means a wider choice of games and healthy competition of producers. And I believe PDX has all necessary capabilities to beat any competitor in this genre.
“Very strong cash flow and profit quickly become a dry well” not because customers would stop pre-ordering each and every thing that PDX offers, but in case PDX would produce crap games. However I am sure they are absolutely able (in terms of human and financial resources) to produce great games, as they often have done.
As a side note, it would help to learn something about PDX financials before making statements like “$3.1 bn is largely tied up in assets like offices and warehouses”.
All I'm aware of with regards to their public financial statements is revenue and stocks. I don't think they make every one of their assets public. I'm estimating based on three truths:
1. Their operating income in 2018 was about $52.3 million, less than half their total revenue. Even if we assume that as the average across their entire existence as a company, we're talking about a billion dollars in 21 years. Clearly, a lot of this value is derived from stocks and assets that have appreciated over time.
2. A publisher requires offices and warehouses to function. Warehouses less so these days, since physical copies of games aren't as big as they used to be, but they do own White Wolf and Harebrained Schemes, both of whom release physical books. They need buildings to print these, and a place to store copies until they're shipped. Offices, however, are 100% required. This includes PDS offices, since PDS is a direct holding of PDX. Its assets would have likely been purchased with PDX funds one way or another.
3. Here's the big one. Every single company that provides a product is interested in
expansion. The purpose of making money is not to make a bunch of money and then float around in the pile. The purpose of making money is to invest into the company so you can make more money. Any business sim in a video game, no matter the complexity, is enough to teach this simple fact first hand. This means a good portion of their net worth is being continually circulated back into production, else they stop being a relevant company. It's simply the way of consumer business. There are no operating exceptions. Any exceptional cases have already liquidated by now.
Anyway, you're right about one thing: Pre-orders aren't required to keep the company afloat. However, I was addressing specifically the comment about Paradox not being a company that needs the support of its consumers, which is quite honestly a statement devoid of any knowledge about consumerism. Consumerism is an exchange of money for goods. If goods aren't being bought, the company is spending money on production and overhead that isn't getting replaced. This is what being in the red looks like, and it's a surefire way for a company to collapse.
Every single producer of consumer goods and services requires customer support. It's no different than saying, "<Restaurant> doesn't need your support, they're worth millions." If enough people switch to a different restaurant based on that assumption, that restaurant doesn't exist anymore.