Steam (content delivery)
Encyclopedia
Steam is a digital distribution, digital rights management
Digital rights management
Digital rights management is a class of access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals with the intent to limit the use of digital content and devices after sale. DRM is any technology that inhibits uses of digital content that...

, multiplayer and communications platform developed by Valve Corporation
Valve Corporation
Valve Corporation is an American video game development and digital distribution company based in Bellevue, Washington, United States...

. It is used to distribute games and related media online, from small independent
Independent video game development
Independent video game development is the process of creating video games without the financial support of a video game publisher. While large firms can create independent games, they are usually designed by an individual or a small team of as many as ten people, depending on the complexity of the...

 developers to larger software houses. Steam also has community features, automated game updates, in-game voice and chat functionality.

, there are over 1,400 games available through Steam, and 35 million active user accounts. Although Valve never releases sales figures, Stardock
Stardock
Stardock Corporation is a software development company founded in 1991 and incorporated in 1993 as Stardock Systems. Stardock initially developed for the OS/2 platform, but was forced to switch to Windows due to the collapse of the OS/2 software market between 1997 and 1998...

, the previous owner of competing platform Impulse, estimated that, as of 2009, Steam had a 70% share of the digital distribution market for video games.

Many major publishers
Video game publisher
A video game publisher is a company that publishes video games that they have either developed internally or have had developed by a video game developer....

 have large catalogues available on Steam, including Bethesda Softworks
Bethesda Softworks
Bethesda Softworks, LLC, is an American video game company. A subsidiary of ZeniMax Media, the company was originally based in Bethesda, Maryland and eventually moved to their current location in Rockville, Maryland...

, Activision
Activision
Activision is an American publisher, majority owned by French conglomerate Vivendi SA. Its current CEO is Robert Kotick. It was founded on October 1, 1979 and was the world's first independent developer and distributor of video games for gaming consoles...

, Rockstar Games
Rockstar Games
Rockstar Games is a major video game developer and publisher based in New York City, owned by Take-Two Interactive following its purchase of UK video game publisher BMG Interactive. The brand is mostly known for Grand Theft Auto, Max Payne, L.A...

, Square Enix
Square Enix
is a Japanese video game and publishing company best known for its console role-playing game franchises, which include the Final Fantasy series, the Dragon Quest series, and the action-RPG Kingdom Hearts series...

, 2K Games
2K Games
2K is a global developer, marketer, distributor and publisher of interactive entertainment software games. 2K Games is a subsidiary of Take-Two Interactive, which also owns Rockstar Games notable for the Grand Theft Auto series...

, Telltale Games
Telltale Games
Telltale Games is a leading independent digital first publisher and game developer founded in June 2004 as Telltale, Incorporated. Based in San Rafael, California, the studio includes designers formerly employed by LucasArts...

 and Electronic Arts
Electronic Arts
Electronic Arts, Inc. is a major American developer, marketer, publisher and distributor of video games. Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and was notable for promoting the designers and programmers...

.

Software delivery and maintenance

Steam's primary service is to allow its users to download games and other software
Digital distribution
Online distribution, digital distribution, or electronic software distribution is the practice of delivering content without the use of physical media, typically by downloading via the internet directly to a consumer's device. Online distribution bypasses conventional physical distribution media,...

 that they have in their virtual software library to their local computers. Steam-integrated games are stored as single non-compressed archive files with the extension .gcf (an initialism for Game Cache File). Steam allocates space on the user's hard disk for .gcf files before downloading in order to reduce fragmentation which may occur when downloading large files and performing disk access. Game Cache Files help to make games more portable, stop users from accidentally overwriting important files, allow for easy modification of resources, and allows for validation of content for errors. For games that do not integrate, a 'No Cache File' system is provided. Here, a .ncf index file points to a directory of loose files somewhere else on the system. Users can enable Steam to automatically patch software packages as they are updated by their publishers, or alternatively allow users to manually initiate this patching process. The client allows users to backup game data files to other media, and remove game content files to free space on their machines.

Steam provides minimal digital rights management
Digital rights management
Digital rights management is a class of access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals with the intent to limit the use of digital content and devices after sale. DRM is any technology that inhibits uses of digital content that...

 (DRM) for software titles, by providing "Custom Executable Generation" for executable files that are unique for each user, but allow that user to install the software on multiple computing devices via Steam or through software backups without limitations. As such, the user is required to have started Steam while connected to the Internet for authentication prior to playing a game, or have previously set up Steam in an "offline" mode while connected online, storing their credentials locally to play without an Internet connection. Steam's DRM is available through Steamworks to software developers, but the service allows developers and publishers to include other forms of DRM on top of Steam.

To protect against hijacking of accounts, Valve added Steam Guard functionality to the Steam client in March 2011. Steam Guard takes advantage of the identity protection provided with Intel's second generation Core
Intel Core
Yonah was the code name for Intel's first generation of 65 nm process mobile microprocessors, based on the Banias/Dothan-core Pentium M microarchitecture. SIMD performance has been improved through the addition of SSE3 instructions and improvements to SSE and SSE2 implementations, while integer...

 processors and compatible motherboard hardware to allow the user to lock their account to a specific computer. Once locked, activity by that account on other computers must first be approved of by the user on the locked computer. Support APIs for Steam Guard are available to third-party developers through Steamworks. An alternative option available to users interested in using Steam Guard is two-factor authentication
Two-factor authentication
Two-factor authentication is an approach to authentication which requires the presentation of two different kinds of evidence that someone is who they say they are. It is a part of the broader family of multi-factor authentication, which is a defense in depth approach to security...

 through the use of a one-time verification code sent to a verified email address associated with the Steam account. Many of Steam Guard's features will work the same with the only real difference being the method of authentication.

In September 2008, Valve added support for Steam Cloud, a cloud computing
Cloud computing
Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility over a network ....

 file share that can automatically store game saves and related custom files to Valve's services; users can then access this data from any other machine running the Steam client. Games must use the appropriate features of Steamworks for this feature to work. Users are able to disable this feature as well on a per-game and per-account basis.

Storefront

Steam includes a digital storefront called the Steam Store, through which users can purchase computer games
Computer Games
"Computer Games" is a single by New Zealand group, Mi-Sex released in 1979 in Australia and New Zealand and in 1981 throughout Europe. It was the single that launched the band, and was hugely popular, particularly in Australia and New Zealand...

 digitally
Digital distribution
Online distribution, digital distribution, or electronic software distribution is the practice of delivering content without the use of physical media, typically by downloading via the internet directly to a consumer's device. Online distribution bypasses conventional physical distribution media,...

. Once purchased, software is permanently attached to the user's Steam account (however "gifting" of games to other accounts is possible). Content is delivered using a proprietary file transfer protocol from an international network of servers. Steam sells its products in US dollars
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

, Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

s, pounds sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

, and Roubles based on the user's location. From December 2010, the client also supports the Webmoney
WebMoney
WebMoney is an electronic money and online payment system . WM Transfer Ltd, the owner and administrator of WebMoney Transfer Online Payment System, was founded in 1998 and is a legal corporate entity of Belize, Central America. Originally targeted mainly at Russian clients, it is now used worldwide...

 payment system, available for many European, Middle East, and Asian countries. The Steam storefront validates a user's region, and certain titles may be restricted to specific regions due to release dates, game classification, or publisher agreements.

Certain games sold through retail channels can be redeemed as titles for user's library within Steam by entering a product code within the software. For games that incorporate Steamworks, users can purchase redemption codes from other vendors, and redeem these in the Steam client to add the title to their library. Steam offers a framework for selling and distributing downloadable content
Downloadable content
Downloadable content is official additional content for a video game distributed through the Internet. Downloadable content can be of several types, ranging from a single in-game outfit to an entirely new, extensive storyline, similarly to an expansion pack. As such, DLC may add new game modes,...

 (DLC) for games.
Players can add non-Steam games to their library, allowing the game to be easily accessed from the Steam client, and provides support, where possible, for the Steam Overlay features.
The Steam interface allows for user-defined shortcuts to be added. In this way third-party mods
Mod (computer gaming)
Mod or modification is a term generally applied to personal computer games , especially first-person shooters, role-playing games and real-time strategy games. Mods are made by the general public or a developer, and can be entirely new games in themselves, but mods are not standalone software and...

, and games not purchased through the Steam Store, can use Steam features. Valve sponsors and distributes some mods for free, and mods that use Steamworks can also use VAC, Friends, the server browser, and any Steam features supported by their parent game.

During mid-2011, Valve began to offer free-to-play
Free-to-play
Free-to-play refers to any video game that has the option of allowing its players to play without paying. The model was first popularly used in early massively multiplayer online games targeted towards casual gamers, before finding wider adoption among games released by major video game...

 games, such as Global Agenda
Global Agenda
Global Agenda is an online team-based game by Hi-Rez Studios developed using Unreal Engine 3. The game went live on February 1, 2010. April, 2011, Global Agenda was re-released as a free-to-play game, introducing Elite and Free Agents in addition to an in-game cash shop featuring Agenda...

, Spiral Knights
Spiral Knights
Spiral Knights is a massively multiplayer online role-playing game developed by Three Rings Design and published by Sega. The free-to-play, Java-based game was released to advance testers on November 12, 2009 and to the general public on April 4, 2011...

and Champions Online
Champions Online
Champions Online is a free-to-play superhero-themed massively multiplayer online role-playing game by former City of Heroes/Villains developer Cryptic Studios based on the Champions license. The game's rules and setting are loosely based on the HERO System ruleset...

; this was tied in with their move to make Team Fortress 2 a free-to-play title. Valve included support via Steamworks for microtransactions through Steam's purchasing channels for in-game items in these titles, in a similar manner to the existing in-game store for Team Fortress 2. A subsequent addition later that year added the ability to trade both in-game items and "unopened" game gifts between users.

Steam Community and Matchmaking

The Steam client, as part of a social network service
Social network service
A social networking service is an online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities. A social network service consists of a representation of each user , his/her social...

, allows users to identify friends and join groups through the Steam Community feature. Users can use both text chat and Peer-to-Peer
Peer-to-peer
Peer-to-peer computing or networking is a distributed application architecture that partitions tasks or workloads among peers. Peers are equally privileged, equipotent participants in the application...

 VoIP
Voice over IP
Voice over Internet Protocol is a family of technologies, methodologies, communication protocols, and transmission techniques for the delivery of voice communications and multimedia sessions over Internet Protocol networks, such as the Internet...

 with other users, identify what their friends and other group members are playing, and, for Steamworks-based games that support it, join and invite friends in multiplayer games. Users can also participate in forums hosted by Valve regarding Steam games. In January 2010, Valve reported that 10 million of the 25 million active Steam accounts had signed up to Steam Community. Each user has a unique page that shows what groups and friends they have, their game library including achievements earned, game wishlists, and other social features; users have the option to keep this information private if desired. The Steam client has been made into an OpenID
OpenID
OpenID is an open standard that describes how users can be authenticated in a decentralized manner, eliminating the need for services to provide their own ad hoc systems and allowing users to consolidate their digital identities...

 provider, allowing third-party websites to utilize a Steam user's identity without requiring the user to expose their Steam credentials.

Steam, through Steamworks, provides a means of server browsing for multiplayer games that utilizes the Steam Community features, allowing users to create lobbies with friends or members of common groups. Steamworks also provides Valve Anti-Cheat
Valve Anti-Cheat
Valve Anti-Cheat, abbreviated to VAC, is an anti-cheat solution developed by Valve Corporation as a component of the Steam game development platform.-History:...

 (VAC), Valve's proprietary anti-cheat system, for game servers to automatically detect and report users who are using cheats
Cheating in online games
Cheating in online games is an activity that modifies the game experience to give one player an advantage over others. Depending on the game, different activities constitute cheating and it is either a matter of game policy or consensus opinion as to whether a particular activity is considered to...

 in online multiplayer games.

Steam collects and reports anonymous metrics of its usage, stability, and performance. With the exception of Valve's hardware survey, most collection occurs without notifying the user or offering an opt-out. Some of these metrics are available publicly, such as what games are being played or statistics on player progress in certain games. Valve has also used information from these statistics to justify implementing new features in Steam, such as the addition of a defragmentation
Defragmentation
In the maintenance of file systems, defragmentation is a process that reduces the amount of fragmentation. It does this by physically organizing the contents of the mass storage device used to store files into the smallest number of contiguous regions . It also attempts to create larger regions of...

 option for game caches. Valve announced on July 15, 2010 that in conjunction with collecting hardware information in Steam's opt-in hardware surveys, they would begin collecting a list of the user's installed software as well.

Steam Overlay

For most games launched from Steam, Steam provides an overlay atop the game that can be accessed by a specific keypress. From the Overlay, the user can access their Steam Community lists and participate in chats, manage selected Steam settings, and access a built-in web browser
Web browser
A web browser is a software application for retrieving, presenting, and traversing information resources on the World Wide Web. An information resource is identified by a Uniform Resource Identifier and may be a web page, image, video, or other piece of content...

 without having to exit the game. The Overlay also allows for players to take screenshot
Screenshot
A screenshot , screen capture , screen dump, screengrab , or print screen is an image taken by a computer to record the visible items displayed on the monitor, television, or another visual output device...

s of the games in process, automatically storing these and letting the player to review, delete, or share them during their play session or after completion.

Steamworks

Steamworks is a freely available application programming interface
Application programming interface
An application programming interface is a source code based specification intended to be used as an interface by software components to communicate with each other...

 (API) that provided development and publishing tools to game developers, allowing them to take advantage of the Steam client's features. Specifically, Steamworks provides means of games to integrate with the Steam client, including networking and player authentication tools for both server and peer-to-peer multiplayer games, matchmaking services, support for Steam community friends and groups, Steam statistics and achievements, integrated voice communications, and Steam Cloud support; the API also provides for anti-cheating devices and digital copy management. Steamworks can be combined with a standard Steam distribution agreement, the latter of which gives it advertising space in the Steam store but also provides Valve with a share of revenue.

Supported platforms

Steam was originally released only for Microsoft Windows
Microsoft Windows
Microsoft Windows is a series of operating systems produced by Microsoft.Microsoft introduced an operating environment named Windows on November 20, 1985 as an add-on to MS-DOS in response to the growing interest in graphical user interfaces . Microsoft Windows came to dominate the world's personal...

-enabled computers, but has since expanded to at least two other platforms.

Mac OS X

On March 8, 2010, Valve announced that Steam was in development for Mac OS X
Mac OS X
Mac OS X is a series of Unix-based operating systems and graphical user interfaces developed, marketed, and sold by Apple Inc. Since 2002, has been included with all new Macintosh computer systems...

. The announcement was preceded by a change in the Steam beta client to support the cross-platform WebKit
WebKit
WebKit is a layout engine designed to allow web browsers to render web pages. WebKit powers Google Chrome and Apple Safari and by October 2011 held over 33% of the browser market share between them. It is also used as the basis for the experimental browser included with the Amazon Kindle ebook...

 web browser rendering engine instead of the Trident engine
Trident (layout engine)
Trident is the name of the layout engine for the Microsoft Windows version of Internet Explorer.It was first introduced with the release of Internet Explorer version 4.0 in October 1997; it has been steadily upgraded and remains in use today...

 from Internet Explorer
Internet Explorer
Windows Internet Explorer is a series of graphical web browsers developed by Microsoft and included as part of the Microsoft Windows line of operating systems, starting in 1995. It was first released as part of the add-on package Plus! for Windows 95 that year...

. Prior to this announcement, it teased the release through several images email
Email
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...

ed to Mac community and gaming web sites featuring Valve game characters with Apple logos or featured in parodies of old Macintosh
Macintosh
The Macintosh , or Mac, is a series of several lines of personal computers designed, developed, and marketed by Apple Inc. The first Macintosh was introduced by Apple's then-chairman Steve Jobs on January 24, 1984; it was the first commercially successful personal computer to feature a mouse and a...

 advertisements. In one case, Valve developed a full video homage to the 1984 Apple Macintosh commercial to announce the availability of Half-Life 2 and its episodes to the service, with some concept images for the video previously used to tease the Mac Steam client.
Originally planned for release in April 2010, Steam for Mac OS X was launched worldwide on May 12, 2010, following a successful beta period. In addition to the Steam client, several features were made available to developers to take advantage of a cross-platform Source engine and platform and network capabilities using Steamworks. Through SteamPlay, the Mac OS X client allows players who have already purchased compatible products in the Windows version to re-download the Mac versions at no cost, allowing them to continue to play the game on the other platform; however some third party titles may require the user to purchase again to gain the cross-platform functionality. The Steam Cloud is cross-platform compatible. Multiplayer games can also be cross-compatible, allowing Windows and Mac players to play with each other.

Upon launch, over 50 games, most supporting the SteamPlay feature, were available for the client. As part of the launch, Valve offered both PC and Mac users to download Portal for free during the first two weeks of launch. For some weeks after the Mac client launch, Valve expanded the catalog of offerings for the service on a weekly basis, with each week highlighting a new feature of the service. Valve has released the native Mac OS X, OpenGL
OpenGL
OpenGL is a standard specification defining a cross-language, cross-platform API for writing applications that produce 2D and 3D computer graphics. The interface consists of over 250 different function calls which can be used to draw complex three-dimensional scenes from simple primitives. OpenGL...

 versions of Left 4 Dead
Left 4 Dead
Left 4 Dead is a cooperative first-person shooter video game. It was developed by Turtle Rock Studios, which was purchased by Valve Corporation during development. The game uses Valve's proprietary Source engine, and is available for Microsoft Windows, Xbox 360 and Mac OS X...

, Left 4 Dead 2
Left 4 Dead 2
Left 4 Dead 2 is a cooperative first-person shooter video game. It is the sequel to Valve Corporation's award-winning Left 4 Dead. The game launched on November 17, 2009, for Microsoft Windows and Xbox 360 in the United States and November 20 in Europe; in 2010, Left 4 Dead 2 was made available to...

, Team Fortress 2
Team Fortress 2
Team Fortress 2 is a free-to-play team-based first-person shooter multiplayer video game developed by Valve Corporation. A sequel to the original mod Team Fortress based on the Quake engine, it was first released as part of the video game compilation The Orange Box on October 10, 2007 for Windows...

, Counter-Strike: Source
Counter-Strike: Source
Counter-Strike: Source is an FPS video game developed by Valve Corporation. It is a complete remake of Counter-Strike using the Source game engine. As in the original, Counter-Strike: Source pits a team of counter-terrorists against a team of terrorists in a series of rounds...

, Portal, and Half-Life 2
Half-Life (series)
The Half-Life series of video games share a science fiction alternate history. Nearly all of the games are first-person shooters on the GoldSource or Source engines, and most are linear, narrative, single-player titles....

 and its episodes following Steam's release. Portal 2
Portal 2
Portal 2 is a first-person puzzle-platform video game developed and published by Valve Corporation. The sequel to the 2007 video game Portal, it was announced on March 5, 2010, following a week-long alternate reality game based on new patches to the original game...

, released in 2011, was the first Valve title simultaneously released on both the Windows and Mac versions of Steam.

PlayStation 3

At E3 2010
Electronic Entertainment Expo 2010
The Electronic Entertainment Expo 2010, commonly known as E3 2010, was the 16th Electronic Entertainment Expo held. The event took place on June 14–17 at the Los Angeles Convention Center. E3 is an annual trade show for the computer and video games industry presented by the Entertainment Software...

, Newell announced that Steamworks would arrive on the PlayStation 3
PlayStation 3
The is the third home video game console produced by Sony Computer Entertainment and the successor to the PlayStation 2 as part of the PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles...

 with Portal 2
Portal 2
Portal 2 is a first-person puzzle-platform video game developed and published by Valve Corporation. The sequel to the 2007 video game Portal, it was announced on March 5, 2010, following a week-long alternate reality game based on new patches to the original game...

. It will provide automatic updates, community support, downloadable content and other unannounced features. Portal 2
Portal 2
Portal 2 is a first-person puzzle-platform video game developed and published by Valve Corporation. The sequel to the 2007 video game Portal, it was announced on March 5, 2010, following a week-long alternate reality game based on new patches to the original game...

s PlayStation 3
PlayStation 3
The is the third home video game console produced by Sony Computer Entertainment and the successor to the PlayStation 2 as part of the PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles...

 release saw Steamworks make its debut on consoles
Video game console
A video game console is an interactive entertainment computer or customized computer system that produces a video display signal which can be used with a display device to display a video game...

. Several features were offered including cross-platform play and instant messaging
Instant messaging
Instant Messaging is a form of real-time direct text-based chatting communication in push mode between two or more people using personal computers or other devices, along with shared clients. The user's text is conveyed over a network, such as the Internet...

, Steam Cloud for saved games, and the ability for PS3 owners to download Portal 2 from Steam (Windows or Mac) at no extra cost. Valve's Counter-Strike: Global Offensive
Counter-Strike: Global Offensive
Counter-Strike: Global Offensive is an online first-person shooter based game currently in development by Valve Software and Hidden Path Entertainment, who also co-developed Counter-Strike: Source...

will also support Steamworks and cross-platform features on the PlayStation 3, including using keyboard and mouse controls as an alternative to the gamepad. Valve said they "hope to expand upon this foundation with more Steam features and functionality in DLC and future content releases".

Other platforms

Based on Valve's website "There are no plans to create a native Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...

 Steam Client at this time." Following the announcement of Steam for Mac OS X
Mac OS X
Mac OS X is a series of Unix-based operating systems and graphical user interfaces developed, marketed, and sold by Apple Inc. Since 2002, has been included with all new Macintosh computer systems...

, Linux benchmark and news website Phoronix
Phoronix
Phoronix is a technology website that offers product reviews, Linux distribution screenshots, interviews, and news while maintaining a pure Linux orientation. Phoronix was started in June 2004 by Michael Larabel, who currently serves as the owner and editor-in-chief. The name Phoronix is a...

found Linux-related references in a beta release of the Mac Steam client. This was followed later by the discovery of files for an incomplete Linux client available for download on Valve's own web servers. On May 12, 2010, The Daily Telegraph
The Daily Telegraph
The Daily Telegraph is a daily morning broadsheet newspaper distributed throughout the United Kingdom and internationally. The newspaper was founded by Arthur B...

claimed that Valve had confirmed that a Linux client was planned to be released "in the coming months", but gave no other details. This claim was then repeated on other websites as hearsay evidence. Valve has since denied working on a Linux version of Steam.
Steam is compatible with newest Wine
Wine (software)
Wine is a free software application that aims to allow computer programs written for Microsoft Windows to run on Unix-like operating systems. Wine also provides a software library, known as Winelib, against which developers can compile Windows applications to help port them to Unix-like...

 layer, and most games operate correctly, although some run slow and require external libraries.

The Xbox 360 currently has no support for Steamworks, but Newell has indicated that they would like to bring the service to the console through the game Counter-Strike: Global Offensive
Counter-Strike: Global Offensive
Counter-Strike: Global Offensive is an online first-person shooter based game currently in development by Valve Software and Hidden Path Entertainment, who also co-developed Counter-Strike: Source...

, which would allow them to provide the same feature set that they can for the PlayStation 3.

Market share and impact

Sales figures for Steam have not been released by Valve. However, Stardock
Stardock
Stardock Corporation is a software development company founded in 1991 and incorporated in 1993 as Stardock Systems. Stardock initially developed for the OS/2 platform, but was forced to switch to Windows due to the collapse of the OS/2 software market between 1997 and 1998...

, the previous owner of competing platform Impulse, estimated that, as of 2009, Steam had a 70% share of the digital distribution market for video games. In early 2011, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...

reported that Steam sales constituted 50 to 70% of the $4 billion market for downloaded PC games and that Steam offered game producers gross margin
Gross margin
Gross margin is the difference between revenue and cost before accounting for certain other costs...

s of 70% of purchase price, compared with 30% at retail.

Recettear: An Item Shop's Tale
Recettear: An Item Shop's Tale
is a role-playing game developed by Japanese dōjin maker EasyGameStation for the Windows operating system. The game follows a young girl named Recette, who is charged by the fairy Tear to run an item shop out of her house to pay off the considerable debt her father had accumulated before his...

sold more than 140,000 units, which its localization distributor, Carpe Fulgur, attribute in part to Steam and its sales. Magicka
Magicka
Magicka is an action-adventure video game based on Norse mythology and developed by independent developer Arrowhead Game Studios. It was released via Steam for Microsoft Windows on January 25, 2011. A free demo was also made available for download...

sold 30,000 copies on its day of release in January 2011, and went on to sell 200,000 in 17 days. Garry's Mod
Garry's Mod
Garry's Mod is a sandbox physics game using the Source engine. Garry's Mod has been available on Steam's content delivery service since November 29, 2006...

sold 312,541 in its first two years and reached 1,000,000 after five years with yearly sales growth of 33%..

In November 2011, it was revealed by the developer of The Witcher 2: Assassins of Kings
The Witcher 2: Assassins of Kings
The Witcher 2: Assassins of Kings is a third-person role-playing video game developed by Polish studio CD Projekt RED for Microsoft Windows and Xbox 360. It is a sequel to the 2007 video game The Witcher, and was released internationally on May 17, 2011. Just like its predecessor, the game is based...

 that Steam was responsible for 80% of the online sales of the game.

Beginnings

Prior to Steam, Valve had problems releasing updates for their online games, such as Counter-Strike
Counter-Strike
Counter-Strike is a tactical first-person shooter video game developed by Valve Corporation which originated from a Half-Life modification by Minh "Gooseman" Le and Jess "Cliffe" Cliffe...

, wherein a patch would result in the disconnection of the larger part of the online user base for several days. They decided to make a platform which would update games automatically, and implement better anti-piracy
Anti-piracy
Anti-piracy is a term used to describe countermeasures against maritime piracy but moreoften by some to describe the attempt to prevent copyright infringement, counterfeiting, and other violations of intellectual-property rights....

 and anti-cheat measures. Valve originally approached several companies—including Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...

, Yahoo!
Yahoo!
Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...

, and RealNetworks
RealNetworks
RealNetworks, Inc. is a provider of Internet media delivery software and services based in Downtown Seattle, Washington, United States. The company is the creator of RealAudio, a compressed audio format; RealVideo, a compressed video format; RealPlayer, a media player; RealDownloader, a download...

—to build a client with these features, but all turned them down.

Steam's development began at an uncertain date prior to 2002. Working titles included "Grid" and "Gazelle". It was revealed to the public on 22 March 2002 at the Game Developers Conference
Game Developers Conference
The Game Developers Conference is the largest annual gathering of professional video game developers, focusing on learning, inspiration, and networking...

, and was presented purely as a distribution network. To demonstrate the ease of integrating Steam to a game, Relic Entertainment
Relic Entertainment
Relic Entertainment is a Canadian game development company that specializes in 3D real-time strategy games and has released a number of unique PC games. Relic specializes in creative, visually appealing, and combat intense RTS games.-History:...

 had created a special version of Impossible Creatures
Impossible Creatures
Impossible Creatures is a real-time strategy game released on December 29, 2002 developed by Relic Entertainment in conjunction with Microsoft Game Studios. Its unique feature is that the armies used are all created by the player...

. The game was ultimately not released on Steam, however.

Valve partnered with a number of companies including AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...

, Acer and GameSpy
GameSpy
GameSpy Industries, Inc., known simply as GameSpy, is a division of IGN Entertainment, which operates a network of game websites and provides online video game-related services and software. GameSpy dates back to the 1996 release of an internet Quake server search program named QSpy. The current...

 Industries. The first mod
Mod (computer gaming)
Mod or modification is a term generally applied to personal computer games , especially first-person shooters, role-playing games and real-time strategy games. Mods are made by the general public or a developer, and can be entirely new games in themselves, but mods are not standalone software and...

 on the system was Day of Defeat
Day of Defeat
Day of Defeat is a team-based multiplayer World War II first-person shooter video game of the European Theatre of World War II. As of 2008, the game is one of the ten most played Half-Life modifications in terms of players, according to GameSpy....

. (See Mods.)

The Steam client was first made available for download in 2002 during the beta period for Counter-Strike
Counter-Strike
Counter-Strike is a tactical first-person shooter video game developed by Valve Corporation which originated from a Half-Life modification by Minh "Gooseman" Le and Jess "Cliffe" Cliffe...

1.6. At that time, its primary function was streamlining the patch process common in online computer games. Installation and use of Steam was mandatory for Counter-Strike 1.6 beta testers, but Steam remained an optional component. 80,000–300,000 gamers tested the system when it was in its beta period. The system and web site choked under the strain of thousands of users simultaneously attempting to play the latest version of Counter-Strike. In 2004, the World Opponent Network
World Opponent Network
World Opponent Network or WON was an online gaming service, created by Sierra Games as the Sierra Internet Gaming System . WON was used by games such as Homeworld, Half-Life, Star Trek: Armada, Soldier of Fortune, Dark Reign 2, Silencer, ARC and online versions of casino games as well as early...

 was shut down and replaced by Steam. The online features of games which required World Opponent Network ceased to work unless they were converted to Steam.

Around this time, Valve began negotiating contracts with several publishers and independent developers to release their products on Steam. Rag Doll Kung Fu
Rag Doll Kung Fu
Rag Doll Kung Fu is a fighting computer game, created predominantly by artist Mark Healey, while working for Lionhead Studios, along with other Lionhead employees, such as David Smith and Alex Evans. Rag Doll Kung Fu is available from Valve's Steam content delivery platform...

and Darwinia
Darwinia (computer game)
Darwinia is the second game by Introversion Software.-Plot:Darwinia was created as a digital theme world for artificially intelligent polygons by Dr. Sepulveda. Housed in a massive network of surplus Protologic 68000 machines from the 1980s, Darwinia is a world where the single-poly Darwinians,...

are two examples, and Canadian publisher Strategy First
Strategy First
Strategy First is a software company based in Montreal, Canada. Founded in 1988, the company has published numerous well-known games, such as the Disciples series, Jagged Alliance series, Space Empires series, and Galactic Civilizations....

 announced in December 2005 that it would be partnering with Valve for digital distribution of current and future titles. In 2002, Gabe Newell
Gabe Newell
Gabe Logan Newell is the co-founder and managing director of video game development and online distribution company Valve Corporation.-Work:...

, the head of Valve, said he was offering mod teams a game engine license and distribution over Steam for $995.

Profitability

In 2005, the first third-party games began to appear on Steam. Valve also announced that Steam was starting to be profitable, if only due to some highly successful Valve games. Although digital distribution was still no match to retail in terms of sales volume, profit margins for Valve and developers were far bigger on Steam than at retail.

In 2007, big developer-publishers such as id Software
Id Software
Id Software is an American video game development company with its headquarters in Richardson, Texas. The company was founded in 1991 by four members of the computer company Softdisk: programmers John Carmack and John Romero, game designer Tom Hall, and artist Adrian Carmack...

, Eidos Interactive
Eidos Interactive
Eidos Interactive Ltd. is a British video game publisher and is a label of Square Enix Europe. As an independent company Eidos plc was headquartered in the Wimbledon Bridge House in Wimbledon, London Borough of Merton....

 and Capcom
Capcom
is a Japanese developer and publisher of video games, known for creating multi-million-selling franchises such as Devil May Cry, Chaos Legion, Street Fighter, Mega Man and Resident Evil. Capcom developed and published Bionic Commando, Lost Planet and Dark Void too, but they are less known. Its...

 started to distribute their games on Steam. In May 2007, 13 million accounts had been created on Steam, and 150 games were for sale on the platform. In October 2007, the release of The Orange Box
The Orange Box
The Orange Box is a video game compilation for Microsoft Windows, Xbox 360, Mac OS X and PlayStation 3. The Windows and Xbox 360 versions were produced and published by Valve Corporation and released on October 10, 2007 as a boxed retail copy...

, and the distribution of high-profile games such as BioShock
Bioshock
BioShock is a first-person shooter video game developed by 2K Boston and designed by Ken Levine. It was released for Microsoft Windows and Xbox 360 on August 21, 2007 in North America, and three days later in Europe and Australia. It became available on Steam on August 21, 2007...

, Call of Duty 4: Modern Warfare
Call of Duty 4: Modern Warfare
Call of Duty 4: Modern Warfare is a 2007 first-person shooter video game, developed by Infinity Ward and published by Activision for Microsoft Windows, Mac OS X, PlayStation 3, Xbox 360 and Wii. A handheld game was made for the Nintendo DS. The game was released in North America, Australia, and...

, and S.T.A.L.K.E.R.: Shadow of Chernobyl
S.T.A.L.K.E.R.: Shadow of Chernobyl
S.T.A.L.K.E.R.: Shadow of Chernobyl is a first-person shooter video game by the Ukrainian developer GSC Game World, published in 2007.It features an alternate reality theme, where a second nuclear disaster occurs at the Chernobyl Nuclear Power Plant Exclusion Zone in the near future and causes...

, helped increase Steam's popularity.

Steam Translation Server

In March 2010 Valve launched the Steam Translation Server, which is a service that allows Steam users to help in the translation of Steam and a selected library of Steam games. The service was undergoing a closed beta until October 2010. Since then, every Steam user has the ability to apply as a translator.

November 2011 hack

On November 6, 2011, Steam temporarily closed the community forums, citing potential hacking threats to the service. Subsequently, on November 10, Valve reported that the hack included a compromise of one of their customer databases, potentially allowing the perpetrators to access customer information including encrypted password and credit card details. At that time, Valve was not aware if the intruders actually accessed this information or discovered the encryption method, but warned users to be alert for fraudulent activity.

Regional restrictions and pricing

Steam allows developers and publishers to change prices and restrict game availability depending on the user's location. This can cause some games to cost more than retail prices, despite digital distribution removing the costs of manufacturing, packaging, design, and logistics.

Valve also restricts game registration and playability to the buyer's country of residence. One example of this regional restriction can be seen where Valve uses Steam's authentication to prevent boxed versions of their games sold in Russia and Thailand, which are priced significantly lower than elsewhere, from being used outside those territories.

Steam offers products in four currencies: US Dollar, Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

, Pound Sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

 and Russian Ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...

. The currency is selected automatically based on the user's location, and cannot be changed. Steam has been heavily criticized by European users for pricing games much higher in Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...

 countries.

Authentication

It is necessary to authenticate every Steam game online, whether purchased via Steam itself or installed via a retail disc, the first time it is played. After the initial authentication, an offline mode allows games to be run without being connected to your Steam account.

According to the Steam Subscriber Agreement, Steam's availability is not guaranteed and Valve is under no legal obligation to release an update disabling the authentication system in the event that Steam becomes permanently unavailable. Despite this, Gabe Newell
Gabe Newell
Gabe Logan Newell is the co-founder and managing director of video game development and online distribution company Valve Corporation.-Work:...

, CEO of Valve, said in a post on the Steam User Forums that "Unless there was some situation I don't understand, we would presumably disable authentication before any event that would preclude the authentication servers from being available." He added, "We've tested disabling authentication, and it works."

Distribution policies

In July 2011, several Electronic Arts games were removed from Steam. EA has stated that this is because of disputes over Valve's policies regarding how Downloadable Content can be distributed to Steam users. In a blogpost Minecraft
Minecraft
Minecraft is a sandbox-building independent video game written in Java originally by Swedish creator Markus "Notch" Persson and now by his company, Mojang, formed from the proceeds of the game. It was released as an alpha on May 17, 2009, with a beta version on December 20, 2010...

 developer Markus Persson
Markus Persson
Markus Alexej Persson is a Swedish indie game developer and founder of Mojang AB. He is best known for creating the sandbox building game Minecraft.- Biography :...

 also cited similar content-related policies as a reason of the game not being available through Steam.

See also

  • List of Steam games
  • Games for Windows - Live
  • Origin (digital distribution platform)

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK