Steam is an Internet-based
digital distribution platform developed by
Valve Corporation offering
digital rights management(DRM),
multiplayer, and
social networking. Steam provides the user with installation and automatic updating of games on multiple computers, and
community features such as friends lists and groups,
cloud saving, and in-game voice and chat functionality. The software provides a freely available
application programming interface (API) called Steamworks, which developers can use to integrate many of Steam's functions, including networking and matchmaking, in-game achievements,
micro-transactions, and support for user-created content through Steam Workshop, into their products.
Though initially developed for use on
Microsoft Windows, versions for
OS X and
Linux operating systems, and a limited-function version for the
PlayStation 3 console, have also been developed. Chatting and shopping applications for
iOS and
Android mobile devices have also been written. The Steam website also replicates much of the storefront and social network features of the stand-alone application. The success has led to the development of a line of
Steam Machine micro-consoles and personal computers meeting minimum specifications, and
SteamOS, a Linux-based operating system built around the Steam client.
As of February 2015, over 4,500 games are available through Steam, which has 125 million active users. Steam has had as many as 10 million
concurrent users as of June 2015. In November 2009,
Stardock estimated it at 70% and then later, in October 2013, it was estimated by
Screen Digest that 75% of games bought online for the
PC are downloaded
Initial Release
Before implementing Steam, Valve had problems updating its online games, such as
Counter-Strike; providing patches would result in most of the online user base disconnecting for several days. Valve decided to create a platform that would update games automatically and implement stronger
anti-piracy and
anti-cheat measures. Valve approached several companies, including
Microsoft,
Yahoo!, and
RealNetworks to build a client with these features, but were refused.
Steam's development began before 2002. Working titles for the product included "Grid" and "Gazelle". It was first revealed to the public on March 22, 2002, at the
Game Developers Conference, where it was presented purely as a distribution network. To demonstrate the ease of integrating Steam with a game,
Relic Entertainment created a special version of
Impossible Creatures. However, the game was never released on Steam. Valve partnered with several companies, including
AT&T,
Acer, and
GameSpy Industries. The first
mod released on the system was
Day of Defeat.
The Steam client was first made available for public beta testing in January 2003 during the beta period for
Counter-Strike 1.6, for which it was mandatory to install and use. At the time, Steam's primary function was streamlining the patch process common in online computer games. Steam was an optional component for all other games. 80,000–300,000 gamers tested the system when it was in its beta period. The system and website choked under the strain of thousands of users simultaneously attempting to play the latest version of
Counter-Strike. In 2004, the
World Opponent Network 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 that time, Valve began negotiating contracts with several publishers and independent developers to release their products, including
Rag Doll Kung Fu and
Darwinia, on Steam. Canadian publisher
Strategy First announced in December 2005 that it would partner with Valve for digital distribution of current and future titles. In 2002, the head of Valve
Gabe Newell said he was offering mod teams a game engine license and distribution over Steam for
US$995. Valve's
Half-Life 2 was the first game to require installation of the Steam client to play, even for retail copies. This decision was met with concerns about software ownership, software requirements, and issues with overloaded servers demonstrated previously by the
Counter-Strike rollout. During this time users faced multiple issues attempting to play the game.
Profitability
In 2005, third-party games began to appear on Steam, and Valve announced that Steam had become profitable because of some highly successful Valve games. Although digital distribution could not yet match retail volume, profit margins for Valve and developers were far larger on Steam. Large developer-publishers, including id Software, Eidos Interactive, and Capcom, began distributing their games on Steam in 2007. By May that year, 13 million accounts had been created on the service, and 150 games were for sale on the platform.
Client functionality (Software delivery and maintenance)
Steam's primary service is to allow its users to
download games and other software that they have in their virtual software libraries to their local computers as game cache files (GCFs). Steam provides
digital rights management (DRM) for software titles by providing "custom executable generation" for executable files that are unique for each user; this allows the user to install the software on multiple computing devices via Steam or through software backups without limitations. The user is required to be running 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 to the Internet, storing their credentials locally to allow play without an Internet connection. Steam's DRM is available to software developers through Steamworks; the service allows developers and publishers to include other forms of DRM and other authentication services than Steam; for example, some games on Steam require the use of
Games for Windows – Live and some titles from publisher
Ubisoft require the use of their
UPlay gaming service.
In September 2008, Valve added support for Steam Cloud, a service that can automatically store saved game and related custom files on Valve's servers; users can access this data from any machine running the Steam client. Games must use the appropriate features of Steamworks for Steam Cloud to work. Users can disable this feature on a per-game and per-account basis. In May 2012, the service added the ability for users to manage their game libraries from remote clients, including computers and mobile devices; users can instruct Steam to download and install games they own through this service if their Steam client is currently active and running. Some games sold through retail channels can be redeemed as titles for users' libraries within Steam by entering a product code within the software. For games that incorporate Steamworks, users can buy redemption codes from other vendors and redeem these in the Steam client to add the title to their libraries. Steam also offers a framework for selling and distributing downloadable content (DLC) for games.
In September 2013, Steam introduced the ability to share most games with family members and close friends by authorizing machines to access one's library. Authorized players can install the game locally and play it separately from the owning account. Users can access their saved games and achievements providing the main owner is not playing. When the main player initiates a game while a shared account is using it, the shared account user is allowed a few minutes to either save their progress and close the game or purchase the game for his or her own account. Within Family View, introduced in January 2014, parents can adjust settings for their children's tied accounts, limiting the functionality and accessibility to the Steam client and purchased titled.
In accordance with its
Acceptable Use Policy, Valve retains the right to block and unblock customers' access to their games and Steam services when Valve's Anti-Cheat (VAC) software determines that the user is cheating in multiplayer games, selling accounts to others or trading games to exploit regional price differences. Blocking such users initially removed access to his or her other games, leading to some users with high-value accounts losing access because of minor infractions of the AUP. Valve later changed its policy to be similar to that of Electronic Arts'
Origin platform, in which blocked users can still access their games but are heavily restricted, limited to playing in offline mode and unable to participate in Steam Community features. Customers also lose access to their games and Steam account if they refuse to accept changes to Steam's
end user license agreements; this occurred in August 2012. In April 2015, Valve added Game Bans to its service, allowing developers to set bans on players for their games but enacted and enforced at the Steam level, allowing developers to police their own gaming communities in customizable manner.
Storefront Features
The Steam client includes a digital storefront called the Steam Store through which users can purchase computer games. Once the game is bought, a software license is permanently attached to the user's Steam account, allowing him or her to download the software on any compatible device. Game licenses can be given to other accounts under certain conditions. Content is delivered from an international network of servers using a proprietary file transfer
protocol. Steam sells its products in US and Canadian dollars, euros,
pounds sterling, Brazilian
reais, and
Russian rubles depending on the user's location. From December 2010, the client supports the
Webmoney payment system, which is popular in many European, Middle Eastern, and Asian countries. The Steam storefront validates the user's region; the purchase of titles may be restricted to specific regions because of release dates, game classification, or agreements with publishers. The client also offers the Steam Translation Server, which assists Steam users assistance with the translation of Steam and a selected library of Steam games in twenty-five languages. Steam also allows users to purchase
downloadable content for games, and for some specific game titles such as
Team Fortress 2, the ability to purchase in-game inventory items. In February 2015, Steam began to open similar options for in-game item purchases for third-party games.
During mid-2011, Valve began to offer
free-to-play games, such as
Global Agenda,
Spiral Knights and
Champions Online; this offer was linked to the company's move to make
Team Fortress 2 a free-to-play title. Valve included support via Steamworks for
microtransactions for in-game items in these titles through Steam's purchasing channels, in a similar manner to the in-game store for
Team Fortress 2. Later that year, Valve added the ability to trade in-game items and "unopened" game gifts between users. Steam Coupons, which was introduced in December 2011, provides single-use coupons that provide a discount to the cost of items. Steam Coupons can be provided to users by developers and publishers; users can trade these coupons between friends in a similar fashion to gifts and in-game items. Steam Market, a feature introduced in beta in December 2012 that would allow users to sell virtual items to others via Steam Wallet funds, further extended the idea. Valve levies a transaction fee of 15% on such sales and game publishers that use Steam Market pay a transaction fee. For example,
Team Fortress 2—the first game supported at the beta phase—incurred both fees. Full support for other games was expected to be available in early 2013. In April 2013, Valve added subscription-based game support to Steam; the first game to use this service was
Darkfall Unholy Wars.
In October 2012, Steam introduced non-gaming applications, which will be sold through the service. Creativity and productivity applications can access the core functions of the Steamworks API, allowing them to use Steam's simplified installation and updating process, and incorporate features including cloud saving and Steam Workshop. Developers of non-gaming software may submit their applications to the Steam Greenlight service to judge interest for later inclusion on the Steam storefront. The Steam store allows game soundtracks to be purchased to be played via Steam Music or integrated with the user's other media players. Valve has also added the ability for publishers to sell digital movies via the service. With the onset of
Steam Machines as announced in March 2015, the Steam storefront also includes the ability to purchase Steam Machine-related hardware via the Steam store.
In conjunction with developers and publishers, Valve frequently provides discounted sales on games on a daily and weekly basis, sometimes oriented around a publisher or genre theme, and may allow games to be played for free during the days of these sales. The site had offered a large selection of games at discount during its annual Summer and Holiday sales, including
gamification of these sales to incentive users to purchase more games.
Prior to June 2015, Valve has had a no-refunds policy but in some circumstances it has offered refunds if third-party content fails to work or improperly reports on certain features. For example, the Steam version of
From Dust was originally stated to have a single, post-installation online DRM check with its publisher Ubisoft, but the released version of the game required a DRM check with Ubisoft's servers each time it was used. At the request of Ubisoft, Valve offered refunds to customers who bought the game while Ubisoft worked to release a patch that would remove the DRM check altogether. On
The War Z 's release, players found that the game was still in an alpha-build state and lacked many of the features advertised on its Steam store page. Though the developers Hammerpoint Interactive altered the description after launch to reflect the current state of the game software, Valve removed the title from sale and offered refunds to those who had bought it. Valve also removed
Earth: Year 2066 from the Early Access program and offered refunds after discovering that the game's developers had reused assets from other games and used developer tools to erase negative complaints about the title. In June 2015, Valve created a formal process to allow purchasers to request full refunds on games they had purchased on Steam for any reason, with refunds guaranteed within the first two weeks and if the player had not spent more than two hours in the game.
Valve will remove games if they no longer meet Valve's business terms for developers.
Grand Theft Auto: Vice City was removed from Steam because of a claim from the
Recording Industry Association of America over an expired license for one of the songs on the soundtrack. Near the launch of Electronic Arts' (EA) own digital storefront Origin, Valve removed
Crysis 2 and
Dragon Age 2 from Steam because the terms of service prevented games from having their own in-game storefront for downloadable content. In the case of
Crysis 2, a "Maximum Edition" that contained all the available downloadable content for the game and removed the in-game storefront was re-added to Steam. Games that are removed can still be downloaded and played by those that have already purchased these titles.
Security
The popularity of Steam has led to the service being attacked by
hackers in the past. A notable attempt occurred on November 6, 2011, when Valve temporarily closed the community forums, citing potential hacking threats to the service. On November 10, Valve reported that the hack had compromised one of its customer databases, potentially allowing the perpetrators to access customer information—including encrypted password and credit card details. At that time, Valve was not aware whether the intruders actually accessed this information or discovered the encryption method, but nevertheless warned users to be alert for fraudulent activity.
Valve added Steam Guard functionality to the Steam client in March 2011 to protect against the hijacking of accounts via
phishing schemes, one of the largest support issues Valve had at the time. Steam Guard was advertised to take advantage of the identity protection provided by Intel's second-generation
Core processors and compatible motherboard hardware, which allows users to lock their account to a specific computer. Once locked, activity by that account on other computers must first be approved 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 who want to use Steam Guard is
two-factor,
risk-based authentication that uses a one-time verification code sent to a verified email address associated with the Steam account. If Steam Guard is enabled, the verification code is sent each time the account is used from an unknown machine. It is necessary to authenticate every Steamworks game online the first time it is played, whether purchased via Steam itself or installed via a retail disc. After the initial authentication, an offline mode allows games to be run without being connected to the Internet. In April 2015, Valve implemented a rule that made any new account have to spend money ($5 USD or more) before the account became unrestricted. Some restrictions include: unable to send friend invites, unable to vote on greenlight and workshop submissions and the inability to use the browser chat and mobile chat.
ReVuln, a commercial vulnerability research firm, published a paper in October 2012 that said the Steam browser protocol was posing a security risk by enabling malicious exploits through a simple user click on a maliciously crafted
steam:// URL in a browser. The report was taken up by various online publications. This was the second serious vulnerability of gaming-related software following a recent problem with Ubisoft's copy protection system "Uplay"; the German IT platform "
Heise online" recommended strict separation of gaming and sensitive data, for example using a PC dedicated to gaming, gaming from a second Windows installation, or using a computer account with limited rights dedicated to gaming.
User Interface
Since November 2013, Steam allows for users to review their purchased titles and organize them into categories set by the user and add to favorite lists for quick access. Players can add non-Steam games to their libraries, allowing the game to be easily accessed from the Steam client and providing support where possible for Steam Overlay features. The Steam interface allows for user-defined shortcuts to be added. In this way, third-party modifications and games not purchased through the Steam Store can use Steam features. Valve sponsors and distributes some modifications free-of-charge; and modifications that use Steamworks can also use VAC, Friends, the server browser, and any Steam features supported by their parent game. For most games launched from Steam, the client provides an in-game overlay that can be accessed by a keystroke. From the overlay, the user can access his or her Steam Community lists and participate in chat, manage selected Steam settings, and access a built-in web browser without having to exit the game. Since the beginning of February 2011 as a beta version, the overlay also allows players to take screenshots of the games in process; it automatically stores these and allows the player to review, delete, or share them during or after his or her game session. As a full version in 24 February 2011, this feature was reimplemented so that users could share screenshots on websites of Facebook, Twitter, and Reddit straight from a user's screenshot manager.
When hooking up one's computer to a television, Steam's "Big Picture" mode "turns" the computer into a
console, allowing for the user to experience console simulation.
Steam's "Big Picture" mode was announced in 2011; public betas started in September 2012 and were integrated into the software in December 2012. Big Picture mode is a
10-foot user interface, which optimizes the Steam display to work on high-definition televisions, allowing the user to control Steam with a gamepad or with a keyboard and mouse. Newell has stated that Big Picture mode is a step towards a dedicated Steam entertainment hardware unit. In January 2014, Valve introduced beta support for SteamVR, a
virtual reality (VR) Big Picture interface that worked within the
Oculus Rift headset; the VR support was expanded in March 2015 to support the
HTC Vive, a VR unit developed jointly with Valve. In-Home Streaming was introduced in May 2014; this allows users to stream games installed on one computer to another—regardless of platform—on the same home network.
The Steam client, as part of a
social network service, allows users to identify friends and join groups using the Steam Community feature. Users can use text chat and
peer-to-peer VoIP with other users, identify which games their friends and other group members are playing, and join and invite friends to Steamworks-based multiplayer games that support this feature. Users can participate in forums hosted by Valve to discuss Steam games. Each user has a unique page that shows his or her groups and friends, game library including earned achievements, game wishlists, and other social features; users can choose to keep this information private. In January 2010, Valve reported that 10 million of the 25 million active Steam accounts had signed up to Steam Community. In conjunction with the 2012 Steam Summer Sale, user profiles were updated with Badges reflecting the user's participation in the Steam community and past events. Steam Trading Cards were introduced in beta in May 2013 and were fully supported by June 2013. By playing specific games, players would earn virtual trading cards, which they could trade with friends and use towards gaining rewards on the service such as game discounts, downloadable content, or in-game items, and customize their user profile page. The Steam client has become an
OpenID provider, allowing third-party websites to use a Steam user's identity without requiring the user to expose his or her Steam credentials.
Through Steamworks, Steam provides a means of server browsing for multiplayer games that use the Steam Community features, allowing users to create lobbies with friends or members of common groups. Steamworks also provides
Valve Anti-Cheat (VAC), Valve's proprietary anti-cheat system; game servers automatically detect and report users who are using
cheats in online, multiplayer games. In August 2012, Valve added new features—including dedicated hub pages for games that highlight the best user-created content, top forum posts, and screenshots—to the Community area. In December 2012, a feature called Game Guides, where users can upload text and images detailing games and game strategies in the same manner as
GameFAQs was added. Starting in beta in December 2014 and publically released in January 2015, the Steam client allows players to
broadcast video streams to the public or Steam friends while playing video games.
In September 2014, Steam Music, a built-in
music player, was added to the Steam client, allowing users to play through music stored on their computer or to stream from a locally networked computer.
Developer Features
Valve offers Steamworks, an
application programming interface (API) that provides development and publishing tools to take advantage of Steam client's features, free-of-charge to game and software developers. Steamworks provides 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, allowing games to integrate with the Steam client. The API also provides anti-cheating devices and digital copy management. Developers of software available on Steam are able to track sales of their titles through the Steam store. In February 2014, Valve announced that it will allow developers to set up their own sales for their titles independent of any sales that Valve may set for titles.
Steam Greenlight, announced in July 2012 and released the following month, is a way for Steam users to help choose which games are added to the service. Developers are able to submit information about their games, as well as early builds or beta versions, for consideration by users. Users can pledge support for these games, and Valve will help to make top-pledged games available on the Steam service. In response to complaints during its first week that finding games to support was made difficult by a flood of inappropriate or false submissions, Valve required developers to pay
US$100 to list a game on the service to reduce illegitimate submissions. The fee will be donated to the charity
Child's Play. A later modification allowed developers to put conceptual ideas on the Greenlight service to garner interest in potential projects free-of-charge; votes from such projects are only visible to the developer. Valve also allowed non-gaming software to be voted onto the service through Greenlight.
The first game to be released via Steam Greenlight was
McPixel. The initial process offered by Steam Greenlight was panned because while developers favored the concept, the rate of games that are eventually approved by Valve is very small. Valve has acknowledged that this is a problem and believes it can improve upon it; Valve's Tom Bui said, "we aren't where we want to be yet". In January 2013, Newell stated that Valve recognized that its role in Greenlight has been perceived as a bottleneck, something it plans to eliminate in the future through an open marketplace infrastructure. On the eve of Greenlight's first anniversary, Valve simultaneously approved 100 titles through the Greenlight process to demonstrate this change of direction. Valve stated in January 2014 that it plans to phase out the Greenlight process in favor of providing developers with easier means to put their games onto the Steam service. The September 2014 "Discovery Update" added tools that would allow existing Steam users to be curators for game recommendations, and sorting functions that presented more popular titles and recommended titles specific to the user, as to allow more games to be introduced on Steam without the need of Steam Greenlight, while providing some means to highlight user-recommended games.
Steam's Early Access program was launched in March 2013. This program allows developers to release functional but yet-incomplete products such as beta versions to the service to allow users to buy the titles and help provide testing and feedback towards the final production. Early access also helps to provide funding to the developers to help complete their titles.
Steam Workshop
The Steam Workshop allows players of Valve and Steamworks-enabled games to source user-created content. Users can use in-game or discrete tools to construct and publish new levels, game modifications, or other content for games that support the Workshop. Users can then subscribe to such content through the Steam client or the website and automatically download it to their computers and integrate it with the game. The Workshop was originally used for distribution of new items for
Team Fortress 2; it was redesigned to extend support for any game, including modifications for
The Elder Scrolls V: Skyrim, in early 2012. A May 2012 patch for
Portal 2, enabled by a new map-making tool through the Steam Workshop, introduced the ability to share user-created levels. Independently-developed games, including
Dungeons of Dredmor, are able to provide Steam Workshop support for user-generated content.
Dota 2 became Valve's third published title available for the Steam Workshop in June 2012; its features include customizable accessories, skins, and voice packs.
Valve has provided some user-developed Workshop content as paid-for features in Valve-developed games, including
Team Fortress 2 and
DOTA 2; as of January 2015, over $57 million has been paid to content creators using the Workshop. Valve began allowing developers to use these advanced features in January 2015; the developer and content generator will share the profits of the sale of these items; the feature went live in April 2015, starting with various mods for
Skyrim. This feature was pulled a few days afterward following
negative user feedback and reports of pricing and copyright misuse.
Other Function
Steam for Schools is a function-limited version of the Steam client that is available free-of-charge to educational institutions for use in classrooms. It is part of Valve's initiative to support gamification of learning for classroom instruction; it was released alongside free versions of Portal 2 and a standalone program called Puzzle Maker that allows teachers and students to create and manipulate levels. It features additional authentication security that allows teachers to share and distribute content through a Steam Workshop-type interface but blocks access from students.
Steam Machine
Prior to 2013, industry analysts believed that Valve was developing hardware and tuning features of Steam with apparent use on its own hardware. These computers were pre-emptively dubbed as "Steam Boxes" by the gaming community and expected to be a dedicated machine focused upon Steam functionality and maintaining the core functionality of a traditional video game console. During the week beginning on September 23, 2013, Valve unveiled a console operating system called SteamOS built atop the Linux operating system, a console input device called the Steam Controller, and the final concept of the Steam Machine hardware, which were tentatively scheduled to be released in 2014 but now will be released in late 2015. Unlike other consoles, the Steam Machine has no set hardware; its technology is implemented at the discretion of the manufacturer and is fully customizable in the same lieu as a personal computer. The Steam client enables users to purchase this hardware directly.
Market Share and Impact
Valve does not release any sales figures for its Steam service; it only provides the data to companies with games on Steam, which they cannot release without permission because of a
non-disclosure agreement with Valve. However,
Stardock, 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.
[11] In early 2011,
Forbes reported that Steam sales constituted 50–70% of the
US$4 billion market for downloaded PC games and that Steam offered game producers
gross margins of 70% of purchase price, compared with 30% at retail. Steam's success has led to some criticism because of its support of DRM and for being an effective monopoly.
Free Software Foundation founder
Richard Stallman commented on the issue following the announcement that Steam would come to
Linux; he said that while he supposes that its release can boost GNU/Linux adoption leaving users better off than with Microsoft Windows, he stressed that he sees nothing wrong with commercial software but that the problem is that Steam is unethical for not being
free software and that its inclusion in GNU/Linux distributions teaches the users that the point is not freedom and thus works against the software freedom that is his goal.
In November 2011, the developer of
The Witcher 2: Assassins of Kings revealed that Steam was responsible for 200,000 (80%) of the 250,000 online sales of the game. Steam was responsible for 58.6% of gross revenue for
Defender's Quest during its first three months of release across six digital distribution platforms—comprising four major digital game distributors and two methods of purchasing and downloading the game directly from the developer.
