Valve Corporation facts for kids
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The lobby of Valve's former offices in Bellevue, Washington
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Formerly
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Valve, L.L.C. (1996–2003) |
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| Founded | August 24, 1996 in Kirkland, Washington, US |
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| Total equity | US$10 billion (2019) |
| Owner | Gabe Newell (>50%) |
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Number of employees
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~360 (2016) |
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Valve Corporation, often called Valve Software, is an American company that makes and sells video games. It is based in Bellevue, Washington. Valve is famous for its online game store, Steam. It also created popular game series like Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota.
Valve was started in 1996 by Gabe Newell and Mike Harrington, who used to work at Microsoft. Their first game, Half-Life (1998), was a huge hit. It changed how first-person shooter (FPS) games were made. Mike Harrington left the company in 2000.
In 2003, Valve launched Steam, which lets people download games directly. Then, in 2004, they released Half-Life 2, which was also very popular. Valve continued to make successful games like Team Fortress 2 and Portal in 2007, and Portal 2 in 2011. In 2013, they released the online battle game Dota 2.
In the 2010s, Valve made fewer games. Instead, they tried making their own computer parts and virtual reality (VR) devices. They released VR headsets like the HTC Vive and Valve Index. In 2020, they returned to the Half-Life series with Half-Life: Alyx, a VR game. In 2022, Valve launched the Steam Deck, a portable gaming device.
Valve has a unique way of working. Employees often choose what they want to work on. Most of Valve's money comes from Steam, which is one of the biggest online stores for PC games.
History of Valve
How Valve Started and Half-Life (1996–2003)
Valve was founded in 1996 by Gabe Newell and Mike Harrington. They both used to work at Microsoft. Newell had spent 13 years helping develop Windows. They wanted to start a new business with their own money.
Valve, L.L.C. was started on August 24, 1996, in Kirkland, Washington. This was close to Microsoft's campus. Newell wanted a company name that sounded different from other game companies.
Valve's first game was Half-Life. It was a first-person shooter (FPS) game with scary parts. Valve used a modified version of the Quake engine to make it. They had trouble finding a company to publish the game. Finally, they signed with Sierra On-Line.
Half-Life came out in November 1998. It was a big success with both players and critics. The game was known for its realistic feel and smooth story. It greatly influenced future FPS games.
Valve also worked with other companies to make more Half-Life games. They also made Team Fortress Classic in 1999. Valve released tools for others to create their own game mods. They even hired the creators of a popular mod called Counter-Strike to make it a full game. Mike Harrington left Valve in 2000 after their success.
Source Engine, Steam, and Half-Life 2 (2003–2010)
In 2003, Valve moved to Bellevue, Washington. The company changed its name to Valve Corporation. They moved to bigger offices in Bellevue in 2010 and again in 2016.
Valve started making Half-Life 2 soon after the first game. They used their new game engine, called Source. Half-Life 2 had advanced physics and a strong focus on story. It was released in 2004 and sold 12 million copies by 2011.
In 2002, Valve launched Steam. It was an online store and delivery system for games. At first, Steam only sold Valve's games. It was even required to install Half-Life 2. But soon, Steam started selling games from other companies too.
Because Valve could now publish its own games through Steam, it changed how the company worked. Valve became a flat organization. This means there are no bosses, except for the top leaders. Employees can choose which projects they want to work on.
After Half-Life 2, Valve decided to make shorter games more often. Half-Life 2: Episode One came out in 2006. Episode Two followed in 2007. That same year, Valve also released Team Fortress 2 and the puzzle game Portal.
In 2008, Valve bought Turtle Rock Studios. This studio made Left 4 Dead and Left 4 Dead 2. Turtle Rock Studios later became independent again in 2010.
Valve made a lot of money from Steam. In 2011, Steam controlled 50 to 70% of the market for downloaded PC games.
Moving to Online Services (2010–2014)
In 2010, Valve hired IceFrog. IceFrog was the creator of Defense of the Ancients, a popular game mod. IceFrog led the creation of Dota 2, which was released in 2013.
Valve also started The International in 2011. This is a big yearly eSports tournament for Dota 2. Players help fund the prize pool by buying special items in the game.
Portal 2 was released in April 2011. Valve worked with college students to help develop new features for the game.
In the 2010s, Valve made fewer new games. Instead, they focused on developing computer hardware. Valve wanted to be more like Nintendo. Nintendo makes games and hardware together to create new experiences. Valve first looked into augmented reality. But in 2013, they decided to focus on virtual reality (VR).
In 2015, Valve released the Steam Machine. This was a line of gaming computers, but they did not sell very well.
Some people thought Valve was making fewer games because Steam was so successful. Steam made an estimated $3.4 billion in 2017. Valve canceled many game projects during this time. This included several Half-Life games and Left 4 Dead 3. Many players were disappointed that there was no new Half-Life game for a long time.
Source 2, Virtual Reality, and Half-Life: Alyx (2015–Present)
Valve announced its new game engine, Source 2, in March 2015. They updated Dota 2 to use this new engine that September. In 2015, Valve worked with HTC to create the HTC Vive. This was a VR headset released in 2016. Valve also made some small VR games, like The Lab in 2016.
Valve realized that players wanted a bigger, more important VR game. They started working on a major VR game. They tried out different ideas. They found that the portal system from their Portal games was confusing in VR. So, they decided to make a Half-Life VR game instead. The team felt that VR was a good way to bring back the Half-Life series.
Work on the VR Half-Life game began in late 2016. It had the largest team in Valve's history. In 2018, Valve bought Campo Santo, a game studio known for Firewatch. Campo Santo helped develop Half-Life: Alyx.
In November 2018, Valve released Artifact. This was a digital card game based on Dota 2. However, it did not attract many players. Valve stopped working on it in 2021.
In June 2019, Valve released its own VR headset, the Valve Index. They also released Dota Underlords, a game based on a popular Dota 2 community mod.
In March 2020, Valve released Half-Life: Alyx, their VR game. It was highly praised and seen as a "must-have" VR game. Its success made Valve want to develop more games.
Valve also worked with Netflix to create Dota: Dragon's Blood. This was an animated TV show based on Dota, which came out in March 2021. In February 2022, Valve released the Steam Deck. This is a portable game system that runs on SteamOS. In March 2023, Valve announced Counter-Strike 2, which will have big technical improvements.
How Valve Works
At first, Valve had a typical company structure with bosses and deadlines. But once Valve started publishing its own games through Steam, they found this structure was slowing them down.
After finishing Half-Life 2, Valve changed to a flat organization. This means that, apart from the top leaders, there are no bosses. Employees can choose what they work on. Valve's marketing manager, Doug Lombardi, said that teams come up with ideas themselves. This way, employees take ownership of their projects. However, Gabe Newell admitted that this way of working is not for everyone.
Even without bosses, some employees have more influence because they have been there longer. Decisions are often made together. Valve also has an "Overwatch" process. This is where senior members give feedback, but teams can choose to use it or not.
Because Steam is so successful, Valve does not depend on every game being a hit. However, the lack of a strict structure has led to some projects being canceled. It can be hard to get enough people to work on a project. In 2020, Valve admitted that this slowed down their game releases in the 2010s. Their VR projects and Half-Life: Alyx helped them set clearer goals and focus the company.
Valve Time
Valve time is a funny term used in the gaming world. It means that the "promised" release date for Valve's games or content is often different from the "actual" release date. Usually, this means delays, but sometimes things come out earlier. Valve itself knows about this term. They even track these differences on their development wiki. Valve says delays happen because their teams choose what to work on, rather than sticking to strict company deadlines.
Testing Games
Valve tests its games a lot, right from the start of development. They change the games based on what they learn from these tests. Valve believes that game designers are like experimental psychologists.
The Valve writer Chet Faliszek said he used to blame testers when they did not understand a game design. But he changed his mind when many testers had the same problem. He realized it was the game's fault, not the testers'. For example, in Left 4 Dead, a small change to a texture made every tester miss a ladder and get stuck.
Testing helps Valve make the best experience for players. If something "super cool" happens by accident during a test, developers try to make it happen for every player.
Valve's Technology
| First Release | Name | Type |
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| 1998 | GoldSrc | Game engine |
| 2004 | Source | |
| 2015 | Source 2 |
Valve's Products
Games
Valve is the main company that makes and sells games like Half-Life and Portal. They also make multiplayer games such as Counter-Strike, Team Fortress 2, Dota 2, Day of Defeat, and Artifact. Valve also published Left 4 Dead and made Left 4 Dead 2. Some games Valve planned but never released include a fantasy RPG called Prospero and many Half-Life projects.
Steam
Valve announced Steam, their digital distribution service, in 2002. It launched in September 2003. At first, it was used to send updates for Valve's online games.
By July 2014, Steam had over 3,400 games. By January 2018, it had over 150 million registered accounts.
Valve also set up a company in Luxembourg called Valve S.a.r.l. This was to help with selling games in Europe. However, this company stopped operating in 2017. In August 2017, Valve announced that Steam had over 67 million monthly users.
Steam Machine
Gabe Newell was concerned about Windows becoming a more closed system. He thought Linux would be a good platform for Steam games.
In 2012, Valve announced they were working on a console/PC hybrid for living rooms. This was called the "Steam Box" by the media. They also released SteamOS, a free Linux-based operating system. SteamOS was meant for the Steam Machine platform.
In 2015, companies like Alienware and ZOTAC launched their versions of the Steam Machine. However, they did not sell very well. By June 2016, fewer than half a million had been sold. While the Steam Machine line was mostly stopped, Valve continued to sell Steam Controllers and the Steam Link for in-home game streaming.
Valve Index and Virtual Reality
At a conference in March 2015, Valve and HTC showed off SteamVR and the HTC Vive. These were a virtual reality platform and a virtual reality headset. The system allowed for "room-scale" VR. This meant players could walk around in a real space while playing.
In June 2019, Valve released its own VR headset, the Valve Index. It was a high-end device with a wider view and faster refresh rate. It came with new controllers that strapped to the user's hands.
Steam Deck
The Steam Deck was announced in July 2021. It is a hybrid game console similar to the Nintendo Switch. It is mainly a handheld device for playing Steam games. But it can also connect to a monitor and use other accessories with a separate dock. The first units started shipping in February 2022.
Images for kids
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Valve's logo until 2018
