Today Steam stands as a dominant PC games marketplace, drawing lawsuits over monopoly claims. Yet for two decades, few expected that a digital service would become essential for PC gaming.
In a documentary marking Steam’s 20th anniversary tied to Half-Life 2, Valve cofounder Gabe Newell looked back at the platform’s early ambitions. The team originally planned to use Steam to push updates, not to run a storefront. As time passed, they realized the system could also enable full game downloads.
The first major title to push Steam into the market was Half-Life 2, which required the Steam client to install. The decision sparked controversy since it was a single-player project tied to the platform. Newell stood by the plan while others doubted. Across the industry, many publishers doubted Steam’s future and declined to supply games.
It was a very strange time. I don’t think people realize how many times we approached studios and offered to distribute software over the Internet, and they said, “No, that will never happen.” I’m not talking about one or two people. I mean, 99% of the companies we talked to said this would never happen. “Users don’t need it; people want physical copies,” they argued. There were so many strange arguments. Retail sales aren’t the goal, right? It’s about who stands between you and the consumer.
– Gabe Newell
Ultimately, Valve’s strategy paid off, and Steam gradually grew into the leading PC gaming platform known today.
Recently, Valve saw a veteran designer depart; Greg Coomer, whose likeness appeared in the Gordon Freeman model, left the company and whispers suggested he moved to Microsoft. At the same time, activists in the United States criticized Steam for hosting content some labeled extremist.
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