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ValveCorporation

FromWikipedia,thefreeencyclopedia

ValveCorporation(commonlyreferredtoasValve)isan
Americanvideogamedeveloperanddigitaldistribution
companyheadquarteredinBellevue,Washington.Thecompany
isknownfortheHalfLife,CounterStrike,Portal,Dayof
Defeat,TeamFortress,andLeft4Deadseries,Dota2,andits
softwaredistributionplatformSteam.
Valvewasfoundedin1996asalimitedliabilitycompanyby
formerMicrosoftemployeesGabeNewellandMikeHarrington.
Theirdebutproduct,thePCfirstpersonshooterHalfLife,was
releasedin1998tocriticalacclaimandcommercialsuccess,
afterwhichHarringtonleftthecompany.In2004,Valve
launchedSteam,alongsidethecriticallyacclaimedHalfLife2.
By2011,theSteamplatformhadcontrolledoverhalfofthe
digitalPCgamemarket,withValvebeingthemostprofitable
companyperemployeeintheUnitedStatesatthetime.[3]In
2015,ValveenteredthegamehardwaremarketwiththeSteam
Machine,alineofprebuiltgamingcomputersrunningSteamOS,
aValvedevelopedforkofLinux.

Contents
1 History
1.1 Foundingandincorporation
1.2 HalfLife
1.3 Sourcegameengine
1.4 Acquisitionsandawards
1.5 Networkintrusions
1.6 Legaldisputes
1.6.1 ValveCorporationv.Vivendi
UniversalGames
1.6.2 ValveCorporationv.Activision
Blizzard
1.6.3 BlizzardEntertainmentv.Valve
Corporation
1.6.4 ACCCv.ValveCorporation
1.6.5 UFCQueChoisirv.Valve
Corporation
1.6.6 A.M.v.ValveCorporation
1.6.7 Skinsgambling
2 Games
2.1 Cancelledgames
3 Otherprojects
3.1 Steam
3.1.1 SteamMachine
3.2 Pipeline
3.3 J.J.Abramscollaboration

ValveCorporation

LobbyareaofValve'sofficesinBellevue,
Washington
Formerly
called

ValveL.L.C. (19962003)

Type

Private

Industry

Videogameindustry
Digitaldistribution

Founded

August24,1996
Kirkland,Washington,
UnitedStates

Founders

GabeNewell
MikeHarrington

Headquarters Bellevue,Washington,United
States
Numberof
locations

2offices

Areaserved

Worldwide

Keypeople

GabeNewell (President)
ScottLynch (COO)

Products

Videogames:
CounterStrikeseries
Dota2
DayofDefeatseries
HalfLifeseries
Left4Deadseries
Portalseries
TeamFortressseries
Software:
GoldSrc
Source
Steam
SteamOS

4
5
6
7
8
9

3.3 J.J.Abramscollaboration
3.4 HTCVive
Finances
Organizationalstructure
"ValveTime"
PowerPlay
References
Externallinks

ValveAntiCheat
VOGL
Totalequity

US$2.5billion[1](2012)

Numberof
employees

~360[2](2016)

Subsidiaries

ValveS.a.r.l.

Website

www.valvesoftware.com(http://w
ww.valvesoftware.com)

History
Foundingandincorporation
ValvewasfoundedbyformerlongtimeMicrosoftemployeesGabeNewellandMikeHarringtononAugust24,
1996,[4][5]asValveL.L.C.,basedinKirkland,WashingtonontheSeattleEastside.Harringtonleftthecompanyin
2000.AfterincorporationinApril2003,[6]itmovedfromitsoriginallocationtoBellevue,Washington,thesame
cityinwhichtheiroriginalpublisher,SierraOnLine,Inc.,wasbased.In2010,theofficewasmovedagaintoa
largerlocationinBellevue.[7]In2016,ValvesignedaninefloorleaseintheLincolnSquarecomplexindowntown
Bellevue,doublingthesizeoftheiroffices.[8]

HalfLife
AftersecuringalicensetotheQuakeenginethroughthehelpoffriendMichaelAbrashofidSoftwareinlate1996,
NewellandHarringtonbeganworkingonHalfLife.Originallyplannedforreleaseinlate1997,HalfLifelaunched
onNovember19,1998.ValveacquiredTFSoftwarePty.Ltd.,themakersoftheTeamFortressmodforQuake,in
May1998withtheintenttocreateastandaloneTeamFortressgame.[9]TheTeamFortressClassicmod,
essentiallyaportoftheoriginalTeamFortressmodforQuake,wasreleasedforHalfLifein1999.Gearbox
contributedmuchafterthereleaseofHalfLife.GearboxSoftwareisresponsiblefortheHalfLifeexpansionpacks,
HalfLife:OpposingForceandHalfLife:BlueShift,alongwiththehomeconsoleversionsofHalfLifeforthe
SegaDreamcastandSonyPlayStation2whichincludedathirdexpansionpackcalledHalfLife:Decay,which
enabledtwoplayersplitscreencoop.

Sourcegameengine
AfterthesuccessofHalfLife,theteamworkedonmods,spinoffs,andsequels,includingHalfLife2.Allcurrent
ValvegamesarebuiltonitsSourceengine.Thecompanyhasdevelopedsixgameseries:HalfLife,TeamFortress,
Portal,CounterStrike,Left4DeadandDayofDefeat.Valveisnotedforitssupportofitsgames'modding
community,mostprominently,CounterStrike,TeamFortress,andDayofDefeat.Valvehasbranchedoutwiththis
traditiontocontinuedevelopingDota2asthestandalonesequeltotheWarcraftIIImod.[10]Eachofthesegames
beganasathirdpartymodthatValvepurchasedanddevelopedintoafullgame.Theyalsodistributecommunity
modsonSteam.[11]ValveannouncedtheSource2engineonMarch3,2015.[12]

Acquisitionsandawards
Valvehasgrownbothinscopeandcommercialvalue.OnJanuary10,2008,Valveannouncedtheacquisitionof
TurtleRockStudios.[13]OnApril8,2010,ValvewonTheEscapistMagazine'sMarchMayhemtournamentforthe
bestdeveloperof2010,[14]beatingoutZyngainthesemifinalsandBioWareinthefinal.

In2012,thecompanyacquiredStarFilledStudios,atwomangamingcompanytoopenaSanFranciscooffice.[15]
InAugust2013,however,Valveendedtheoperationwhenitwasdecidedthattherewaslittlebenefitcomingfrom
thearrangement.[16]

Networkintrusions
Valve'sinternalnetworkhasbeeninfiltratedbyhackersthreetimes,in2003wherecontentoftheyettobereleased
HalfLife2wasleakedontotheinternet,[17]Newell'semailaccountwascompromised,andkeyloggerswere
installedonseveralValvesystems.[18]In2011theSteamcustomerdatabasesandofficialforumswere
compromised.[19][20]OnSeptember2011,ahackerbrokeintothenetworkanddownloadedtheyettobereleased
betacodeofCallofDuty:ModernWarfare3.[21][22]
In2014,adeveloperfromSCSSoftwarereportedanexploitthatallowedannouncementpagestobeinjectedwith
code,andafternoresponse,heeditedanannouncementtoredirectuserstoaHarlemShakevideo.[23][24][25]In
2016,avulnerabilityontheSteamStoreallowedausertopublishagamewithoutanyauthorizationfrom
Valve.[26][27]

Legaldisputes
ValveCorporationv.VivendiUniversalGames
Between2002and2005,Valvewasinvolvedinacomplexlegalshowdownwithitspublisher,VivendiUniversal
Games(underVivendi'sbrandSierraEntertainment).ItofficiallybeganonAugust14,2002,whenValvesued
Sierraforcopyrightinfringement,allegingthatthepublisherhadillegallydistributedcopiesoftheirgamesto
Internetcafes.Theylateraddedclaimsofbreachofcontract,accusingtheirpublisherofwithholdingroyaltiesand
delayingthereleaseofCounterStrike:ConditionZerountilaftertheholidayseason.
Vivendifoughtback,sayingthatGabeNewellandmarketingdirectorDougLombardihadmisrepresentedValve's
positioninmeetingswiththepublisher.Vivendilatercountersued,claimingthatValve'sSteamcontentdistribution
systemattemptedtocircumventtheirpublishingagreement.VivendisoughtintellectualpropertyrightstoHalfLife
andarulingpreventingValvefromusingSteamtodistributeHalfLife2.
OnNovember29,2004,JudgeThomasSamuelZillyoftheU.S.DistrictCourtfortheWesternDistrictof
WashingtonruledinfavorofValve.Specifically,therulingstatedthatVivendiUniversalanditsaffiliates
(includingSierra)werenotauthorizedtodistributeValvegames,eitherdirectlyorindirectly,throughcybercafs
toendusersforpaytoplayactivitiespursuanttotheparties'publishingagreement.Inaddition,JudgeZillyruled
thatValvecouldrecovercopyrightdamagesforinfringementswithoutregardtothepublishingagreement's
limitationofliabilityclause.[28]ValvepostedontheSteamwebsitethatthetwocompanieshadcometoa
settlementincourtonApril29,2005.[29]ElectronicArtsannouncedonJuly18,2005,thattheywouldbeteaming
upwithValveinamultiyeardealtodistributetheirgames,replacingVivendiUniversalfromthenonwards.[30]As
aresultofthetrial,thearbitratoralsoawardedValve$2,391,932.
ValveCorporationv.ActivisionBlizzard
InApril2009,ValvesuedActivisionBlizzard,whichacquiredSierraEntertainmentafteramergerwithitsparent
company,VivendiUniversalGames.ActivisionhadallegedlyrefusedtohonortheValvev.Vivendiarbitration
agreement.ActivisionhadonlypaidValve$1,967,796ofthe$2,391,932award,refusingtopaytheremaining
$424,136,claimingithadoverpaidthatsuminthepastyears.[31][32]

BlizzardEntertainmentv.ValveCorporation
ShortlyafterValvefileditstrademarkfor"Dota"tosecurethefranchisingrightsforDota2,DotAAllstars,LLC,
runbyformercontributorstothegame'spredecessor,DefenseoftheAncients,filedanopposingtrademarkin
August2010.[33]DotAAllstars,LLCwassoldtoBlizzardEntertainment,thedeveloperofDotA'splatform
WarcraftIIIanditsworldeditor,in2011.AftertheoppositionwasoverruledinValve'sfavor,Blizzarditselffiled
anoppositionagainstValveinNovember2011,citingtheirlicenseagreementwithdevelopers,aswellastheir
ownershipofDotAAllstars,LLC.[34]OnMay11,2012,BlizzardandValveannouncedthatthedisputehadbeen
settled.Valveretainedtherightstotheterm"Dota"commercially,whileBlizzardreservedtherightforfanstouse
thetrademarknoncommercially,andchangedthenameoftheirStarCraftIImap,BlizzardDOTA,to"BlizzardAll
Stars".[35]BlizzardAllStarswasadaptedintoastandalonegameandrenamed"HeroesoftheStorm"onOctober
17,2013.[36]
ACCCv.ValveCorporation
TheAustralianCompetitionandConsumerCommission(ACCC)announceditwastakingactionagainstValvein
2014.OnMarch29,2016ValvewasfoundguiltyofbreachingAustralianconsumerbecause:[37][38]
consumerswerenotentitledtoarefundfordigitallydownloadedgamespurchasedfromValveviatheSteam
websiteorSteamClient(inanycircumstances)
Valvehadexcludedstatutoryguaranteesand/orwarrantiesthatgoodswouldbeofacceptablequalityand
Valvehadrestrictedormodifiedstatutoryguaranteesand/orwarrantiesofacceptablequality.
ThecourtoverseeingthecasesidedwiththeACCCinassigningaA$3millionfineagainstValveinDecember
2016,aswellasrequiringValvetoinformAustralianconsumersoftheirrightswhenpurchasinggamesfrom
Steam.[39]
UFCQueChoisirv.ValveCorporation
ConsumerrightsgroupUFCQueChoisir,basedinFrance,filedalawsuitagainstValveinDecember2015,
claimingusersshouldbeabletoreselltheirsoftware.[40][41]
A.M.v.ValveCorporation
Aformeremployeefileda$3.1millionlawsuitinMay2016allegingmistreatmentaftersexreassignmentsurgery,
andthatValvewasexploitingworkers.[42][43]
Skinsgambling
ValvewasnamedasadefendantintwolawsuitsinJuneandJuly2016relatedtothirdpartygamblingsitesthatuse
theSteamworksAPItoallowbettingwiththevirtualcurrencyofcosmeticweapon"skins"fromCounterStrike:
GlobalOffensive,whichthroughthesesitescanbeconvertedfromortorealworldmoney.BothsuitsassertValve
aidinginunderagedgambling.[44]Valvesubsequentlystatedithasnocommercialtieswiththesesites,andthatit
woulddemandthesesitesceasetheiruseoftheSteamworksAPIastheyviolatetheauthorizedusepolicies.[45][46]
InOctober2016,theWashingtonStateGamblingCommissionrequiredValvetostoptheuseofvirtualskinsfor
gamblingonSteam,statingtheywouldfacelegalrepercussionsiftheyfailedtocooperate.[47]Valvesentaletteron

October17,2016totheWashingtonStateGamblingCommissionstating,"Valvehasnobusinessrelationshipwith
suchgamblingsites,andindeedtheycancomeintoexistence,operate,andgooutofexistencewithoutValve's
knowlege"andthat"WearenotawareofanysuchlawthatSteamorourgamesareviolating".[48]

Games
Cancelledgames
IncompletegamesincludeafairyRPG,[49]Prospero[50]andStarsofBlood.[51][52]
ValveworkedwithArkaneStudiosonTheCrossing,whichwascanceledinMay2009.Arkanelatertriedto
produceReturntoRavenholm(a.k.a.HalfLife2:EpisodeFour)withoutconsensusbyValve,whichwasthenalso
canceled.[53][54][55]

Otherprojects
Steam
ValveannounceditsgamesplatformSteamin2002.Atthetimeitlookedto
bemerelyamethodofstreamliningthepatchprocesscommoninonline
videogames,butwaslaterrevealedasareplacementformuchofthe
frameworkoftheWorldOpponentNetworkserviceandalsoasa
distributionanddigitalrightsmanagementsystemforentiregames.
ByJuly2014,therewereover3,400gamesavailableonSteam,andthe
platformhadsurpassed75millionactiveuseraccountsbyJanuary2014.[56]
OnAugust1,2012,ValveannouncedrevisionstotheSteamSubscriber
Agreement(SSA)toprohibitclassactionlawsuitsbyusersagainstthe
serviceprovider.[57][58]
AlongsidethesechangestotheSSA,thecompanyalsodeclaredpublicly
GabeNewell(foreground)andDoug
theincorporationofValveS.a.r.l.,asubsidiarybasedinLuxembourg.[57][58]
Lombardi(background),2007
ValvesetupaphysicalofficeinLuxembourgKirchberg.Accordingto
Valve'sprojectmanagerMikeDunkle,thelocationwaschosenfor
eCommercecapabilitiesandinfrastructure,talentacquisition,taxadvantagesandcentralgeographiclocation
mostmajorpartnersareaccessible,with50%withindrivingdistance.[59]
ValveS.a.r.l.isusedtosellgamestoUnitedKingdombaseduserstoavoidpayingthefull20%VAT.[60]Thetax
loopholewasexpectedtobeclosedonJanuary1,2015.[61]InDecember2015,theFrenchconsumergroupUFC
QueChoisirinitiatedalawsuitagainstValveforseveraloftheirSteampoliciesthatconflictorrunafoulofFrench
law.Oneofthereasonswasforusingthetaxloophole.[62]
SteamMachine
NewellhasbeencriticalofthedirectionthatMicrosofthastakenwiththeWindowsoperatingsysteminmakingit
aclosedarchitecturesimilartoApple'sproducts,andhasstatedthathebelievesthatthechangesmadeinWindows
8are"acatastropheforeveryoneinthePCspace".[63]NewellidentifiedtheopensourceLinuxplatformasanideal
platformforSteam,notingthattheonlythingholdingbackitsadoptionisthelackofgames.[63]

In2012,Valveannouncedthattheywereworkingonaconsole/PChybridforthelivingroomwhichwas
unofficiallydubbedbymediaasthe"SteamBox".[64][65]AprecursortosuchaunitisSteamOS,afreelyavailable
LinuxbasedoperatingsystemthatbuildsupontheSteamclientfunctionalitythatincludesmediaservices,live
streamingacrosshomenetworks,gamesharingwithinfamilies,andparentalcontrols.SteamOSwasofficially
announcedinSeptember2013asthefirstofseveralannouncementsrelatedtotheSteamMachineplatform[66]as
wellastheiruniquegamecontroller.[4]InMay2014,Valveannouncedthatthecompany'sownSteamOSpowered
SteamMachinewouldbedelayeduntil2015duetoproblemswiththegamecontroller.[67]

Pipeline
InJuly2013,ValveannouncedPipeline,aninternprojectconsistingoftenhighschoolstudentsworkingtogether
tolearnhowtocreatevideogamecontent.[68]Pipelineservestodiscussandanswerquestionsthatteenagersoften
askaboutthevideogameindustry,[69]andseeifitispossibletotrainagroupofteenagerswithminimalwork
experiencetoworkforacompanylikeValve.[69]ThelatterpurposebreaksValve'straditionofemploying
experienceddevelopers,asthecompanyisnotgoodat"teachingpeoplestraightoutofschool".[69][7]

J.J.Abramscollaboration
Atthe2013D.I.C.E.Summit,GabeNewellconfirmedthatheanddirectorJ.J.Abramswerecollaboratingto
produceaHalfLifeorPortalfilm,aswellasapossiblenewgame.[70]

HTCVive
InMarch2015,ValveandTaiwaneseelectronicscompanyHTCannouncedajointprojecttodeveloptheVive,a
virtualrealityheadsetwithmotiontrackedcontrollers.[71]ThecompaniesareworkingwithGoogle,LionsGate,
andHBOtodevelopcontentforthedevice.[72]

Finances
Valvedoesnotmakeitsfinancespublic.In2005,ForbesestimatedthatValvehadgrossed$70millionthatyear.
EdBarton,aScreenDigestanalyst,estimatedValve's2010revenuetobeinthe"highhundredsofmillionsof
dollars".Asof2011,thecompanyhadanestimatedworthof$2to4billion,andaccordingtoNewellitwasthe
mostprofitablecompanyperemployeeintheUnitedStates.MostofValve'srevenuecomesfromitsSteam
service,whichcontrols50to70%ofthemarketfordownloadedPCgames.[73]

Organizationalstructure
Valveisrunasaflatorganizationwithoutbosses,andusesopenallocation(employeescanmovebetweenteamsat
will).[7][74][75]EconomistYanisVaroufakis,aformereconomicconsultantforValve,andformerFinanceMinister
ofGreece,attemptedtoplaceValve'sorganizationinthecontextoftheoriesofthefirmandbroadereconomic
thinking.[76][77][78]FormeremployeeJeriEllsworthhas,however,criticizedthestructureas"alotlikehigh
school",wherewhilethestructureisflat,certainpeoplewithinthecompanyneverthelesshavemoresayin
decisionsthanothers.[79]

"ValveTime"

"ValveTime"isanindustrytermusedjokinglywithgamereleasesfromValve,usedtoacknowledgethedifference
betweenthe"promised"dateforreleasedcontentstatedbyValveandtothe"actual"releasedate"ValveTime"
includespredominantdelaysbutalsoincludessomecontentthatwasreleasedearlierthanexpected.Valveitself
hasfullyacknowledgedtheterm,includingtrackingknowndiscrepanciesbetweenidealandactualreleaseson
theirpublicdevelopmentwiki[80]andusingitinannouncementsaboutsuchdelays.[81][82]Valveascribesdelaysto
theirmentalityofteamdriveninitiativesovercorporatedeadlinestomakesuretheyprovideahighqualityproduct
totheircustomers.[83]
Valve'sformerbusinessdevelopmentchiefJasonHoltmanstatedthatthecompanyseesthemselvesasan"oddity"
inanindustrythatlookstowardspunctualdeliveryofproductsinstead,Valve"[tries]ashardaswecantomake
thebestthingpossibleintherighttimeframeandgetpeoplecontenttheywanttoconsume.Andifthattakes
longer,that'sfine".[84]Forthat,Valvetakestheconceptof"ValveTime"asacompliment,andthat"having
customersconsistentlylookingatourpropertyorsomethingyou'vedoneandsaying,canyougivememore"is
evidencethattheyaremakingtherightdecisionswiththeirgamereleases,accordingtoHoltman.[84]Thecompany
doestrytoavoidunintentionaldelaysoftheirprojects,[85]andbelievesthattheearlieroccurrencesof"ValveTime"
delays,primarilyfromHalfLifedevelopment,hashelpedthemimprovetheirreleaseschedules.[83]

PowerPlay
PowerPlaywasatechnologicalinitiativeheadedbyValveandCiscoSystemstodecreasethelatencyforonline
computergames.[86]GabeNewell,themanagingdirectorofValve,announcedtheprojectinJanuary2000and
after12monthstheprojectwasquietlyabandoned.
PowerPlaywasdescribedasasetofprotocolsanddeploymentstandardsattherouterleveltoimprove
performance.Itwasclaimedthataplayerwith1000mspingwasabletoplayagainstanotherplayeronaLAN
connectionwithnonoticeabledisadvantage.[87]InitiallytheprotocolwastobereleasedwithPowerPlay1.0
focusingonQualityofService(QoS)andlaterarevision,PowerPlay2.0thatwouldfocusonfunctionality.Cisco
andValveintendedtodeliverasingledialupserviceinQ12000intheUnitedStateswitha30dayfreetrialwith
abundledcopyofTeamFortressmodifiedtosupportPowerPlay.[88]Despiteneverdeployingthedialupplan
featuringPowerPlay1.0,ValveannouncedinJanuary2001thatthestandardhadindeedbeenfinalized.[87]
ThestandardwastoinvolvepurchasingPowerPlayapprovedCiscohardwareandinfrastructurethathadadequate
bandwidthandQoSstandardsthatprioritizePowerPlaygamingpacketsattheexpenseofallothers.GabeNewell
concededthatInternetserviceproviders(ISPs)wouldbearthebruntofthisexpense:"TheISPsaregoingtoneed
tospendafairamountofmoneytobecompliantwithPowerPlay.Buthowtheygetthatbackisuptothem.Some
willhaveatieredservice,andsomewilljusttrytorecouptheirinvestmentthroughreducedcustomerchurnand
customeracquisition."[89]

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firstisthatwearefrequentlyaskedquestionsbyteenagersaboutthevideogameindustry."Whatisitliketoworkon
videogames?WhatshouldIstudy?Whatcollegesarebestforpreparingme?HowdoIgetajobinvideogames?"Pipeline
willbeaplacewherethosequestionscanbediscussed.ThesecondisthatValveisrunninganexperiment.Traditionally
Valvehasbeenaverygoodplaceforveryexperiencedvideogamedevelopers,andnotsogoodatteachingpeoplestraight
outofschool(thereasonsforthisandthetradeoffsarecoveredintheValveemployeehandbook).Pipelineisan
experimenttoseeifwecantakeagroupofhighschoolstudentswithminimalworkexperienceandtraintheminthe
skillsandmethodsnecessarytobesuccessfulatacompanylikeValve.
Whatistheobjectiveofthewebsiteitself?Wewanttoestablishaconnectiontotheworldofteenagersthatareasking
manyquestionsaboutgettingintothegamingindustry.Welooktoanswermanyofthesequestionsandarewillingto
reachouttothecommunityandgivethemtheinformationtheyneed.
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itsdefinition'snotionofconnection,direction,outreach,andsupply.Valveisoftenaskedquestionssuchas"howdoIget
fromwhereIamnowtoworkingataprofessionallevelinavideogamecompanylikeValve?"Naturally,likeapipeline,
thejourneyislong,butthegoalofthisprojectistoactasadirectfeedofknowledgefromValvetothecommunityin
ordertohelpequipindividualswiththeskillsnecessarytoachievetheirgoalsofgettingintothevideogameindustry.We
willsupplyinformationonavarietyofdifferentfieldspromptedbypublicdemand.Informationwillcomeintheformof
interviewswithprofessionalsandresourcesonthiswebsite,displayingthevarietyofwaysthatyoucanachieveyour
goals."
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