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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336 (2021) |
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Valve Corporation, also known as Valve Software, is an American company that makes and publishes video games. It also runs Steam, a huge online store where people can buy and play PC games. Valve is based in Bellevue, Washington.
Valve is famous for creating popular game series like Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota.
The company was started in 1996 by Gabe Newell and Mike Harrington, who used to work at Microsoft. Their first game, Half-Life (released in 1998), was a big hit. It was a first-person shooter game that changed how many games in that style were made. Mike Harrington left Valve in 2000.
In 2003, Valve launched Steam, their online game platform. After that, they released many more successful games, including Half-Life 2 (2004), Team Fortress 2 (2007), Portal (2007), Left 4 Dead (2008), Portal 2 (2011), and Dota 2 (2013).
In the 2010s, Valve started making fewer games. Instead, they focused on creating hardware and virtual reality (VR) technology. 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 major VR game. In 2022, Valve launched the Steam Deck, a portable gaming system.
Valve has a unique way of working. Employees often choose what projects they want to work on. They test their games a lot and keep making changes based on feedback. By 2012, Valve had about 250 employees and was worth over $3 billion. Most of Valve's money comes from Steam, which is a very popular platform for PC games.
Contents
How Valve Started and Grew
Early Days and Half-Life (1996–2003)
Valve was founded on August 24, 1996, by Gabe Newell and Mike Harrington. Both had worked at Microsoft for many years. Newell had helped develop Windows, including bringing the game Doom to Windows 95. He wanted to create games differently.
Valve's first office was in Kirkland, Washington. They chose a company name that sounded friendly, not aggressive.
Their first game, Half-Life, was a first-person shooter with scary parts. Valve used a modified version of the Quake game engine, which they called GoldSrc. After some trouble finding a publisher, they partnered with Sierra On-Line.
Half-Life came out in November 1998 and was a huge success. It was praised for its realistic feel and exciting story. Many people say it changed how first-person shooter games were made forever.
Valve also worked with other companies to make more Half-Life games. They also bought the team that made the popular Team Fortress game mod. This led to Team Fortress Classic in 1999. Valve also released tools for people 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 sold his share of Valve to Gabe Newell in 2000.
At first, Sierra owned the rights to Half-Life and could publish Valve's future games. But Valve wanted more control. They made a deal with Sierra that gave Valve the rights to Half-Life and allowed them to distribute their games online.
New Engine, Steam, and Half-Life 2 (2003–2010)
In 2003, Valve moved its main office to Bellevue, Washington. 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 brand-new game engine called Source. Half-Life 2 was released in 2004 and was highly praised for its advanced physics and deep story. It sold millions of copies.
In 2002, Valve launched Steam, an online store and platform for delivering games. At first, Steam only offered Valve's own games. Players even had to use Steam to install Half-Life 2. But soon, other game companies started selling their games on Steam too. As Valve became its own publisher through Steam, it changed its company structure.
Valve has a very flat structure. This means that, apart from the top leaders, there are no bosses. Employees can choose what they want to work on. This system lets employees follow their interests.
After spending five years making Half-Life 2, Valve decided to make shorter games more often. They released Half-Life 2: Episode One in 2006 and Episode Two in 2007. They also released the multiplayer game Team Fortress 2 and the puzzle game Portal in 2007. In 2008, Valve bought Turtle Rock Studios, which made Left 4 Dead. Turtle Rock Studios later became independent again in 2010.
Focus on Online Services (2010–2014)
In 2009, Valve hired IceFrog, who created 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, an annual esports tournament for Dota 2. Players can help fund the prize pool by buying special items in the game.
Valve released Portal 2 in April 2011. Like the first Portal, Valve worked with student teams to help develop it.
By 2011, Valve was worth billions of dollars and had about 250 employees. Most of Valve's money came from Steam, which was the biggest online store for PC games.
Valve changed its approach from making short, separate games to constantly updating games like Left 4 Dead 2 and Team Fortress 2 through Steam. In 2012, Valve even hired an economist to study the online economies in their games.
In the 2010s, Valve released fewer new games. Instead, they put money into developing hardware. Gabe Newell wanted Valve to be more like Nintendo, making games and hardware together. Valve first focused on augmented reality, but then shifted to virtual reality (VR). In 2015, Valve released the Steam Machine, a type of gaming computer, but it did not sell well. Many people thought Valve was focusing too much on Steam and less on making new games.
Valve canceled many game projects during this time, including several Half-Life games. This made many players frustrated because they wanted a new Half-Life game.
Source 2, VR, and Half-Life: Alyx (2015–Present)
Valve announced their new game engine, Source 2, in March 2015. They updated Dota 2 to use this new engine. That same year, Valve worked with HTC to create the HTC Vive, a VR headset released in 2016. Valve also made some VR mini-games called The Lab.
Valve realized that players wanted a big, exciting VR game. They tried out many ideas and decided to make a Half-Life game for VR. The team felt that making a VR game was a good way to bring back the Half-Life series.
Work on the VR Half-Life game started in late 2016. It had the biggest team in Valve's history. In 2018, Valve bought Campo Santo, a game developer known for Firewatch. Campo Santo helped develop Half-Life: Alyx.
In November 2018, Valve released Artifact, a digital card game based on Dota 2. It had a unique way of buying new cards and 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 mod.
In March 2020, Valve released Half-Life: Alyx, a VR game that received excellent reviews. Many people called it the first "must-have" VR game. The success of Alyx made Valve want to develop more games. Valve also worked with Netflix on Dota: Dragon's Blood, an animated TV show based on Dota, which came out in March 2021.
In February 2022, Valve released the Steam Deck, a portable gaming system that runs on SteamOS. In September 2023, Valve released Counter-Strike 2. It was generally well-received, but some players had mixed feelings.
In 2024, Valve began testing a new multiplayer game called Deadlock, which mixes hero shooter and MOBA styles. By 2023, Valve's yearly earnings were estimated to be $5 billion.
How Valve Works
At first, Valve had a traditional company structure with bosses and deadlines. But as 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, except for the top leaders, there are no bosses. Employees can choose what projects they want to work on. This approach lets employees work on things they are most interested in. However, it also means they are responsible for their own work and any mistakes. Gabe Newell said this structure works well for some people but not for everyone.
Even without bosses, some employees have more influence because they have been at Valve longer or have strong relationships. Teams often get feedback from senior members, but they can choose whether to use it.
Because Steam is so successful, Valve does not depend on every game being a huge hit. However, the lack of a strict structure can sometimes make it hard to get many people to work on a single project, leading to canceled games. In 2020, Valve admitted that this had slowed down their game releases in the 2010s. Their VR projects and Half-Life: Alyx helped them set clearer goals and focus the company.
In 2024, it was estimated that Gabe Newell owned more than half of Valve, with the rest owned by employees. Valve started with 60 employees in 2003 and grew to about 350 by 2012, staying around that number until 2021.
Valve Time
Valve time is a funny term used in the gaming world. It refers to the difference between when Valve says something will be released and when it actually comes out. Often, things are delayed, but sometimes they come out earlier. Valve knows about this term and even tracks these differences on their website. They say delays happen because their teams choose what to work on, rather than following strict company deadlines.
Testing Games
Valve tests its games a lot from the very beginning of development. They make changes based on what they learn from these tests. Valve believes that game designers are like "experimental psychologists." They watch how players interact with the game and make changes to improve the experience. For example, if testers keep missing a ladder in a game, the developers realize it is their fault for the design, not the testers' fault.
Testing helps Valve make sure the game is as fun as possible for players. If something exciting happens by chance during a test, the developers try to make it happen for every player.
What Valve Makes
Games
Valve develops and publishes many popular games. These include the single-player Half-Life and Portal games. They also make multiplayer games like Counter-Strike, Team Fortress 2, Dota 2, Day of Defeat, and Artifact. Valve also published Left 4 Dead and developed Left 4 Dead 2. Some games Valve worked on were canceled, like a fantasy role-playing game called Prospero and several Half-Life projects.
Game Engines
Valve has created at least three game engines:
- GoldSrc: This engine was based on a modified Quake engine and was used for Half-Life.
- Source: Valve built this engine from scratch to replace GoldSrc. It was used for most of Valve's games in the early 2000s, including Half-Life 2 and the Portal series.
- Source 2: This is an improved version of the Source engine, released in 2015. It is used for games like Dota 2, Counter-Strike 2, The Lab, and Half-Life: Alyx.
Steam
Steam is Valve's online store and service for digital games. Valve announced it in 2002 and launched it in September 2003. At first, it was used to deliver updates for Valve's online games.
In 2012, Valve changed its Steam rules to prevent large group lawsuits against the service. By 2014, Steam had over 3,400 games, and by 2018, it had over 150 million registered accounts.
Valve also had a company in Luxembourg called Valve S.a.r.l. This company was used to sell games to users in some countries to help with taxes. However, this practice stopped in 2017. By August 2017, Steam had over 67 million monthly users.
Steam Machine
Gabe Newell was concerned about Microsoft making Windows a more closed system. He thought Linux would be a better platform for Steam games.
In 2012, Valve announced they were working on a computer-console hybrid for living rooms, called the "Steam Box" by the media. They also created SteamOS, a free Linux-based operating system for games. SteamOS was announced in September 2013, along with the Steam Machine platform and a unique game controller.
The Steam Machine was delayed until 2015 because of issues with the controller. In 2015, other companies like Alienware released their versions of the Steam Machine. However, fewer than half a million were sold by June 2016, and the Steam Machine line was mostly stopped. Valve continued to sell Steam Controllers and make software for the Steam Link, which allows streaming games at home.
Valve Index and Virtual Reality
At a game conference in March 2015, Valve and HTC showed off SteamVR and the HTC Vive, a virtual reality headset. This system allowed for "room-scale" VR, meaning players could walk around in a physical space while playing.
In June 2019, Valve released its own VR headset, the Valve Index. It was designed to be a high-end device with a wider view and faster refresh rate. It came with new controllers that strap to the user's hands and can detect finger movements.
Steam Deck
Announced in July 2021, the Steam Deck is a portable game system similar to the Nintendo Switch. It lets players enjoy Steam games on the go. It can also connect to an external monitor and use other accessories through a separate dock. The Steam Deck started shipping in February 2022.
Other Projects
Pipeline
In July 2013, Valve started a project called Pipeline. It was an intern program where ten high school students learned how to create video game content. Pipeline aimed to answer questions teenagers have about the video game industry. It also explored if it was possible to train young people with little experience to work at a company like Valve.
Legal Challenges
Valve vs. Vivendi Universal Games
Between 2002 and 2005, Valve had a big legal disagreement with its publisher, Vivendi Universal Games. Valve had an agreement with Vivendi to release Half-Life and other games. This agreement gave Vivendi some rights to Valve's games. When Valve started making Half-Life 2, they made a new agreement in 2001 that gave Valve more control and rights for digital distribution. Valve also started working on Steam to distribute games online.
In 2002, Valve found that Vivendi was sharing copies of their games with internet cafes in a way that went against their agreement. Valve filed a lawsuit, saying Vivendi broke their contract and held back money. Vivendi argued that Valve had not been honest about developing Steam.
In November 2004, a judge ruled in favor of Valve. The judge said Vivendi was not allowed to distribute Valve games through internet cafes. Valve also won money for damages. In April 2005, the companies reached an agreement. Electronic Arts then partnered with Valve to distribute their games.
Dota Game Ownership
Defense of the Ancients (DotA) was a very important game mod created in 2003. It helped start the multiplayer online battle arena (MOBA) game style. It was first made by Kyle Sommer for Blizzard Entertainment's Warcraft III: Reign of Chaos. Other versions of the mod were made, with one called DotA-Allstars becoming very popular.
"IceFrog", who managed DotA-Allstars, was hired by Valve in 2009. The rights to the DotA game idea were sold to Valve in 2010. Valve then started working on a new game called Dota 2. Another group of people who worked on DotA-Allstars tried to claim the name, but Valve won the right to use "Dota" for commercial games. Blizzard, who also wanted to use the "Dota" name for their games, changed their game names to avoid confusion. Valve's Dota 2 was released in 2013.
Australian Consumer Law Case
In 2014, the Australian Competition & Consumer Commission (ACCC) took action against Valve. In March 2016, Valve was found to have broken Australian consumer laws. This was because Valve had claimed that customers could not get refunds for digital games bought on Steam, which was against Australian rules.
During this case, Valve started offering refunds for Steam purchases. However, the case still looked at Valve's actions before the refund policy. In December 2016, the court ordered Valve to pay about $2.1 million and to tell Australian customers about their rights. Valve tried to appeal this decision, but higher courts in Australia rejected their appeals.
French Consumer Law Case
A consumer rights group in France, UFC Que Choisir, filed a lawsuit against Valve in December 2015. They argued that users should be able to resell their digital games. In September 2019, a court in Paris ruled in favor of the consumer group, saying Valve must allow Steam games to be resold. Valve said it would appeal this decision.
Virtual Item Trading
In 2016, Valve was involved in some legal discussions about websites that allowed betting with virtual items, often called "skins," from Counter-Strike: Global Offensive. These skins could be traded for real money. Valve stated that it had no business connection with these sites and that they were breaking Steam's rules. Valve then asked these sites to stop using Steam's tools.
Fair Competition Practices
In February 2017, the European Commission started looking into Valve and five other game publishers. They were investigating if these companies were using "geo-blocking" on Steam. Geo-blocking means preventing people in certain countries from accessing software. This practice goes against the European Union's goal of a single digital market. Valve said it would fight these charges, stating that geo-blocking affected very few of its games and that they had stopped it within the EU in 2015.
In January 2021, some gamers filed a proposed group lawsuit in California against Valve. They claimed that Valve was unfairly using its power in the PC gaming market. They said Valve made game developers agree not to sell their games for less on other platforms, which stopped fair price competition.
In May 2021, another game company, Wolfire Games, filed a similar lawsuit against Valve. They claimed Valve had too much control over the PC gaming market and took a very high percentage from almost every game sale on Steam. This lawsuit was allowed to move forward in May 2022. In November 2024, it became a class-action lawsuit, meaning any developer affected by Valve's revenue cut could join.
In June 2024, a children's digital rights activist in the UK filed a lawsuit against Valve. She accused Valve of "rigging the market" for PC games and overcharging 14 million people in the UK. She is seeking a large amount of money for the affected customers.
Valve vs. Zaiger, LLC
In 2023, Valve had a disagreement with a law firm called Zaiger. Valve claimed the firm was trying to get money from Valve by threatening to bring many legal cases on behalf of Steam customers. Valve said the firm was misusing the legal process. The lawsuit was dismissed in 2024 due to technical reasons.
In September 2024, Valve changed its Steam Subscriber Agreement. Now, disagreements must be handled in court, and there is no longer an option for arbitration.
Images for kids
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Valve's logo until 2018
See also
In Spanish: Valve Corporation para niños
