Gabe Newell and Mike Harrington co-found Valve L.L.C. (later Valve Corporation) in Kirkland, Washington. Their aim is to create innovative and immersive gaming experiences.

Valve focuses on developing its first game, Half-Life. Newell and Harrington invest their own money into the project. This period involves significant research, development, and iteration, resulting in a groundbreaking title.

Half-Life is released to critical acclaim and commercial success. The game's innovative storytelling, immersive atmosphere, and engaging gameplay set a new standard for first-person shooters. It quickly becomes a landmark title in the gaming industry.

The release of the Half-Life SDK fosters a thriving modding community, leading to the creation of popular mods like Counter-Strike. Valve supports and encourages this community, recognizing its importance to the game's longevity.