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Steam (service)

Steam is a digital distribution service and storefront developed by Valve. It was launched as a software client in September 2003 to provide video game updates automatically for Valve's games and expanded to distributing third-party titles in late 2005. Steam offers various features, such as game server matchmaking with Valve Anti-Cheat (VAC) measures, social networking, and game streaming services. The Steam client functions include update maintenance, cloud storage, and community features such as direct messaging, an in-game overlay, discussion forums, and a virtual collectable marketplace. The storefront also offers productivity software, game soundtracks, videos, and sells hardware made by Valve, such as the Valve Index and the Steam Deck.

Steamworks, an application programming interface (API) released in 2008, is used by developers to integrate Steam's functions, including digital rights management (DRM), into their products. Several game publishers began distributing their products on Steam that year. Initially developed for Windows, Steam was ported to macOS and Linux in 2010 and 2013 respectively, while a mobile version of Steam for interacting with the service's online features was released on iOS and Android in 2012.

The service is the largest digital distribution platform for PC games, with an estimated 75% of the market share in 2013 according to IHS Screen Digest. By 2017, game purchases through Steam totaled about US$4.3 billion, or at least 18% of global PC game sales according to Steam Spy. By 2021, the service had over 34,000 games with over 132 million monthly active users. Steam's success has led to the development of the Steam Machine gaming PCs in 2015, including the SteamOS Linux distribution and Steam Controller; Steam Link devices for local game streaming; and in 2022, the handheld Steam Deck tailored for running Steam games.

In the early 2000s, Valve was looking for a better way to update its published games, as providing downloadable patches for multiplayer games resulted in most users disconnecting for several days until they had installed the patch. They decided to create a platform that would update games automatically, and implement stronger anti-piracy and anti-cheat measures. They approached several companies, including Microsoft, Yahoo!, and RealNetworks, to build a client with these features, but were rejected.

Valve began its own platform development in 2002, using the working names "Grid" and "Gazelle". The Steam platform was announced at the Game Developers Conference event on March 22, 2002, and released for beta testing that day. Prior to the implementation of Steam, Valve had a publishing contract with Sierra Studios; the 2001 version of the contract gave Valve rights to digital distribution of its games. Valve took Sierra and its owners, Vivendi Games, to court in 2002 over a claimed breach of contract. Sierra counter-sued, asserting that Valve had undermined the contract by offering a digital storefront for their games, to compete directly with Sierra.

Steam was released out of beta on September 12, 2003. In November 2004, Half-Life 2 was the first high-profile game to be offered digitally on Steam, requiring installation of the Steam client for retail copies. During this time users faced problems attempting to play; part of legal issues that Valve had with Vivendi, who claimed that physical copies they published could not be activated as to them the game had not been released. The Steam requirement was met with concerns about software ownership and requirements, as well as problems with overloaded servers - demonstrated previously by the Counter-Strike rollout.

In 2005, third-party developers were contracted to release games on Steam, such as Rag Doll Kung Fu and Darwinia. In May 2007, ATI included Steam in the ATI Catalyst GPU driver as well as offering a free Steam copy of Half-Life 2: Lost Coast and Half-Life 2: Deathmatch to ATI Radeon owners.

In January 2008, Nvidia promoted Steam in the GeForce GPU driver, as well as offering a free Steam copy of Portal: The First Slice to Nvidia hardware owners. In 2011, some Electronic Arts games, such as Crysis 2, Dragon Age II, and Alice: Madness Returns, were removed from sale because of terms of service that prevented them having their own in-game storefront for downloadable content. These were later launched on the Origin service.

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