Valve was founded 30 years ago today — changed PC gaming forever with Half-Life, then Steam

August 24, 1996, marked the founding of Valve, a company born from the minds and experiences of Gabe Newell and Mike Harrington. Newell, a Microsoft alumnus with 13 years on the job, paired with Harrington, who brought 9 years of Microsoft expertise. Together, they aimed to disrupt the PC gaming industry with their innovative approach.

Valve's first game, Half Life (1998), revolutionized the first-person shooter (FPS) genre. Its advanced enemy artificial intelligence (AI), scripted sequences, engaging storytelling, and fluid level design set a new standard, deviating from the repetitive Doom-like templates of its time. Steam (2003) was Valve's second groundbreaking move, reshaping the landscape of online game retail.

Over the years, Steam continuously improved, incorporating features such as automatic updates, cloud saves, community tools, achievements, indie developer support, and mod distribution. This comprehensive approach to game development and distribution made Steam a formidable competitor to larger, wealthier online platforms. Valve's triumph also extended to the modding community, as its Source Engine and Steam Workshop allowed for the creation of billion-dollar franchises that originated as mods.

Despite potential strategic missteps in the past, such as the Steam Machines initiative, Valve seemingly rebounded with the success of the Steam Deck handheld console. This device, combined with the ongoing PC industry challenges due to the AI-pocalypse, suggests Valve's continued commitment to the hardware market. The software support for new hardware, like SteamOS and Proton, has been improving rapidly, giving Microsoft's Windows and Xbox divisions a run for their money. As the PC hardware market stabilizes, competitors may need to reconsider their strategies.