Valve Corporation

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Valve Corporation
Type Video Game Developer and Publisher
Founded Kirkland, Washington, USA (1996)
Headquarters Bellevue, Washington, USA
Key people Gabe Newell, co-founder and managing director
Industry Software & Programming
Products Half-Life series
Counter-Strike series
Day of Defeat series
Team Fortress series
Source engine
Steam
Valve Anti-Cheat
Revenue $70 million USD (2005)
Employees 150[1]
Website www.valvesoftware.com

Valve Corporation is an American video game development company based in Bellevue, Washington, USA that was founded in 1996, and made famous by its first product, Half-Life, which was released in November 1998.

Valve was originally an L.L.C., based in Kirkland, Washington. After the company became a corporation in 2003 it moved away from its original location to Bellevue, Washington. The city of Bellevue, Washington also served as the homebase for their original publisher Sierra On-Line, Inc.

Half-Life's success was followed by developing mods, spin-offs, and sequels including Half-Life 2. Only two fully produced games, Half-Life and Half Life 2, have been released by Valve, along with a number of episodic, multiplayer, expansion, and campaign titles including Portal, Team Fortress Classic, Team Fortress 2, Counter-Strike and Day of Defeat.

On January 10, 2008, Valve Corporation announced that they had acquired Turtle Rock Studios, adding the Californian technology company to its portfolio.[2]

Contents

[edit] Half-Life

Main article: Half-Life

Long-time Microsoft employees Gabe Newell and Mike Harrington founded Valve on August 24th, 1996.[3][4] After securing a license to the Quake engine (through the help of friend Michael Abrash of id Software) in late 1996, they commenced working on Half-Life. Originally planned for release in late 1997, Half-Life launched on November 19, 1998. Valve acquired TF Software PTY Ltd. in May 1998, the makers of the Team Fortress mod for Quake with the intent to create a standalone Team Fortress 2 game. The Team Fortress Classic mod, essentially a port of the original Team Fortress mod for Quake, was released for Half-Life in 1999. Team Fortress 2 was released October 10, 2007, bundled with Half-Life 2: Episode Two along with Portal.

Valve continued work on Half-Life, releasing several more extensions to the game and collaborated with other developers to port it to other platforms. They also took on-board the development of the highly popular Counter-Strike and Day of Defeat Half-Life mods.

[edit] Steam

Gabe Newell (foreground) and Doug Lombardi (background), 2007
Gabe Newell (foreground) and Doug Lombardi (background), 2007

Valve announced its Steam content delivery system in 2002. At the time, it looked to be a method of streamlining the patch process common in online computer games. Steam was later revealed as a replacement for much of the framework of WON and Half-Life multiplayer and also as a distribution system for entire games.

Between 2002 and 2005, Valve was involved in a complex legal showdown with its publisher, Vivendi Universal (under Vivendi's brand Sierra Entertainment). It officially began on August 14, 2002 when Valve sued Sierra for copyright infringement, alleging that the publisher illegally distributed copies of their games to Internet cafes. They later added claims of breach of contract, accusing their publisher of withholding royalties and delaying the release of Counter-Strike: Condition Zero until after the holiday season.

Vivendi fought back, saying that Gabe Newell and marketing director Doug Lombardi had misrepresented Valve's position in meetings with the publisher. Vivendi later countersued, claiming that Valve's Steam content distribution system attempted to circumvent their publishing agreement. VUG sought intellectual property rights to Half-Life and a ruling preventing Valve from using Steam to distribute Half-Life 2.

On November 29, 2004, Judge Thomas S. Zilly of U.S. Federal District Court in Seattle, WA ruled in favor of Valve Corporation. Specifically, the ruling stated that Vivendi Universal and its affiliates (including Sierra) were not authorized to distribute Valve games, either directly or indirectly, through cyber cafés to end users for pay-to-play activities pursuant to the parties' current publishing agreement. In addition, Judge Zilly ruled that Valve could recover copyright damages for infringements without regard to the publishing agreement's limitation of liability clause.[5] Valve posted on the Steam website that the two companies had come to a settlement in court on April 29, 2005.[6] Electronic Arts announced on July 18, 2005 that they would be teaming up with Valve in a multi-year deal to distribute their games, replacing Vivendi Universal from then onwards.[7]

As of May 1, 2008 over 300 PC games are available on Steam[8], and there are approximately 15 million users.[9]

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