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Product Iteration on Steroids

by Andres | Sep 6, 2025 | Thoughts

In 1997, Valve Corporation faced every developer’s nightmare: their debut game Half-Life “wasn’t any fun.” Instead of adding more polish to a turd, they did something radical—scrapped everything and pioneered “design by doing.” Today’s AI-powered development revolution is following the exact same playbook.

Valve’s experimental breakthrough

Valve figured out that game design is experimental psychology, not engineering. When Half-Life bombed in testing, they created a “kitchen sink” level with every crazy idea they had. Their “Cabal Process” used small teams of 5-8 people making decisions based on what players actually did, not what they said they wanted.

The magic was in product discovery: 200+ play testing sessions per project revealed which features were gems and which were duds. Portal’s GLaDOS only exists because testers said the original game felt like “just a tutorial”—one throwaway comment that led to gaming’s most memorable villain.

This wasn’t just user testing—it was ruthless idea validation. Features that didn’t make players smile got killed fast. No committee meetings, no politics, just pure “does this actually work?” experimentation.

AI tools supercharge discovery

Today’s “vibe coding” is Valve’s philosophy on steroids—let AI handle the boring stuff while you focus on “will users love this?” GitHub Copilot users ship features 50% faster, while tools like Cursor turn rough ideas into working prototypes in hours.

The real game-changer is discovery speed: Y Combinator startups now achieve 10% weekly growth with tiny teams. A quarter of them have AI-generated codebases. You can test a product idea on Tuesday and have real user data by Friday.

Context engineering—feeding AI the right background info—eliminates the “but how does this connect to everything else?” friction that used to kill experimentation. Your crazy idea doesn’t die in implementation hell anymore.

The practical playbook

Build your discovery engine first, optimise later. Smart teams use progressive prototyping: rough wireframes by day 3, clickable prototypes by week 1, and AI-generated working versions by week 2. Tools like Cursor and v0 turn “what if we tried…” into “here, click this” overnight.

Structure matters: autonomous teams of 5-8 people with direct user access beat corporate hierarchies every time. Track what actually matters—experiments per month, time to get user feedback, and how many insights you actually implement.

The secret sauce is failing fast and cheap: psychological safety to test weird ideas, direct user feedback loops, and treating “this sucks” as valuable data rather than personal failure. Your job isn’t to be right—it’s to find what works quickly.

The future is experimental

Valve’s 1997 crisis revealed a fundamental truth: users don’t care about elegant designs—they care about engaging experiences. Today’s AI tools have made this lesson universally applicable. Products succeed through rapid informed by real user behaviour, not perfect planning.

The revolution isn’t just technological—it’s methodological. Valve’s experimental approach, amplified by AI’s prototyping speed, offers a proven path through modern product complexity. Teams that embrace this philosophy aren’t just building better products—they’re building the adaptive capabilities needed when user needs evolve faster than traditional development cycles.

 

Ways to accelerate your experiments 🧪🚀

Component libraries for instant UI:

  • shadcn/ui – Copy-paste React components that look professional

  • Headless UI – Unstyled, accessible components you can style quickly

  • Chakra UI – Simple, modular components with built-in design system

AI-powered prototyping:

  • v0 by Vercel – Generate React components from text descriptions

  • Cursor – AI code editor that builds features while you think

  • Bolt – Full-stack web apps from a single prompt

No-code rapid testing:

  • Framer – Interactive prototypes that feel real

  • Webflow – Visual web development for non-coders

  • Bubble – Build full apps without code

User feedback collection:

  • Hotjar – Heatmaps and session recordings to see what users actually do

  • Loom – Quick video feedback from users

  • Typeform – Beautiful surveys that people actually complete

 

 


Cabal Process

The “Cabal process” refers to Valve’s unique, decentralised approach to game development, particularly used during the creation of Half-Life and Half-Life 2. It emphasises collaboration, shared ownership, and iterative development through small, cross-functional teams called “cabals”. Each cabal works on a specific aspect of the game, with members contributing expertise from various disciplines, fostering a sense of collective responsibility and innovation.