# The Heritage of *Half-Life 2* and the Creation of Steam: A 20-Year Overview
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In November 2004, *Half-Life 2* debuted to widespread acclaim, representing a landmark event in gaming history. Nevertheless, its influence reaches well beyond its innovative gameplay and storytelling. The game was instrumental in propelling the emergence of Steam, a platform that would transform the PC gaming landscape. At the time, few foresaw that Steam would ascend to its current dominance, yet *Half-Life 2* was critical to its initial uptake.
## The Beginnings of Steam: A “Stylish DRM”?
Upon its release, *Half-Life 2* mandated players to install Steam, a platform that was still relatively nascent and developed by Valve. For many gamers, this marked their first interaction with Steam, and opinions were far from entirely favorable. In fact, numerous players perceived it as merely an elaborate DRM (Digital Rights Management) system aimed at regulating access to the game and preventing piracy.
Back then, Steam was devoid of many features that define it today. There were no achievements, no player reviews, no marketplace, and no support for third-party titles. To most users, Steam represented an obstacle separating them from a game they had been eagerly anticipating for years.
## Valve’s Ambition: Eliminating the Intermediaries
Valve’s choice to insist on Steam for *Half-Life 2* was not solely about DRM. It was part of a larger objective to seize control of the distribution process and eliminate traditional retail publishers. In 2002, Valve founder Gabe Newell presented Steam at the Game Developers Conference, identifying it as a “broadband business platform for direct software delivery and content management.”
By directly reaching consumers, Valve sought to bypass the conventional retail structure, where developers received only a minor portion of the total revenue from each sale. As Newell expressed, removing the middlemen could significantly enhance a developer’s earnings from a full-price game—from $7 to $30.
However, this vision faced substantial hurdles. At that time, Valve’s publisher, Vivendi Universal Games (VUG), was opposed to the concept of Steam. In fact, a legal dispute arose, with VUG alleging that Valve had breached their contract by using Steam to undermine retail profits. The conflict was ultimately resolved in 2005, granting Valve full control over its titles and terminating its partnership with Vivendi.
## The Broadband Transformation
A pivotal reason Steam became feasible in the early 2000s was the growing accessibility of broadband internet. Although just about half of U.S. homes had broadband in 2004, Valve’s internal surveys indicated that a large majority of its player base had high-speed internet. This made it practical for players to download substantial games like *Half-Life 2* directly from Steam.
Nevertheless, not everyone had access to broadband, and for those still using dial-up, acquiring the game proved to be a tedious and exasperating task. In order to support these players, Valve
