Editing Valve Corporation (section)

== History ==

=== Founding and ''Half-Life'' (1996–2003) ===
[[File:Gabe newell doug lombardi.jpg|thumb|right|[[Gabe Newell]] (foreground) and Doug Lombardi (background), 2007]]
Valve was founded in 1996 by the former [[Microsoft]] employees [[Gabe Newell]] and [[Mike Harrington]].<ref name="hist" /> Newell had spent the prior 13 years at Microsoft developing [[Microsoft Windows|Windows]],<ref name="hist" /> including the [[Windows 95]] port of ''[[Doom (1993 video game)|Doom]]''.<ref>{{Cite web|title=Gabe Newell made Windows a viable gaming platform, and Linux is next|url=https://www.extremetech.com/gaming/167253-gabe-newell-made-windows-a-viable-gaming-platform-and-linux-is-next?origref=|url-status=live|access-date=March 8, 2021|website=Extreme Tech| date=September 24, 2013 |archive-date=December 17, 2020|archive-url=https://web.archive.org/web/20201217120706/https://www.extremetech.com/gaming/167253-gabe-newell-made-windows-a-viable-gaming-platform-and-linux-is-next?origref=}}</ref> Wanting to move onto a new venture using their shared wealth, Newell and Harrington founded Valve, L.L.C.<ref>{{cite web |title=GDC 2002: Valve Steams - IGN |url=https://www.ign.com/articles/2002/03/22/gdc-2002-valve-steams |website=[[IGN]] |date=March 22, 2002 |access-date=January 24, 2020 |archive-date=April 11, 2020 |archive-url=https://web.archive.org/web/20200411025551/https://www.ign.com/articles/2002/03/22/gdc-2002-valve-steams |url-status=live }}</ref> in [[Kirkland, Washington]], about five miles from the Microsoft campus in [[Redmond, Washington|Redmond]], on August 24, 1996, Newell's wedding day.<ref name="Steam-2007">{{cite web |url=http://storefront.steampowered.com/Steam/Marketing/message/1171/ |title=Steam Message |work=Steam |publisher=Valve |date=August 24, 2007 |access-date=November 8, 2008 |quote=it was exactly eleven years ago that Valve was born |url-status=live |archive-url=https://web.archive.org/web/20081015071058/http://storefront.steampowered.com/Steam/Marketing/message/1171/ |archive-date=October 15, 2008}}</ref><ref>{{cite web |url=http://www.wipo.int/amc/en/domains/decisions/html/2005/d2005-0038.html |first=William R. |last=Towns |title=Valve Corporation v. ValveNET, Inc., ValveNET, Inc., Charles Morrin Case No. D2005-0038 |work=WIPO Arbitration and Mediation Center |publisher=[[World Intellectual Property Organization]] |date=March 9, 2005 |access-date=November 8, 2008 |url-status=live |archive-url=https://web.archive.org/web/20081015020831/http://www.wipo.int/amc/en/domains/decisions/html/2005/d2005-0038.html |archive-date=October 15, 2008}}</ref><ref name="hist">{{cite web |last=Dunn |first=Jeff |date=October 4, 2013 |title=Full Steam ahead: The History of Valve |url=https://www.gamesradar.com/history-of-valve/ |access-date=May 13, 2019 |website=[[GamesRadar]] |archive-date=October 16, 2016 |archive-url=https://web.archive.org/web/20161016131157/http://www.gamesradar.com/history-of-valve/ |url-status=live }}</ref><ref>{{cite web |url=http://www.gamespy.com/articles/697/697083p16.html |title=GameSpy Retro: Developer Origins, Page 16 of 19 |first=John |last=Keefer |date=March 31, 2006 |website=[[GameSpy]] |archive-url=https://web.archive.org/web/20070609133059/http://www.gamespy.com/articles/697/697083p16.html |archive-date=June 9, 2007 |url-status=dead}}</ref> In a break from industry style of the time, Newell did not want a company name that suggested "testosterone-gorged muscles and the 'extreme' of anything".<ref name="flhalflife22" /> Alternative names considered by Newell and Harrington include Hollow Box, Fruitfly Ensemble and Rhino Scar.<ref name="flhalflife22" /><ref>{{cite news|first=John|last=Walker|url=https://www.rockpapershotgun.com/2007/11/21/rps-exclusive-gabe-newell-interview/|title=RPS Exclusive: Gabe Newell Interview|website=[[Rock Paper Shotgun]]|date=November 21, 2007|access-date=May 13, 2019|archive-date=June 9, 2019|archive-url=https://web.archive.org/web/20190609204146/https://www.rockpapershotgun.com/2007/11/21/rps-exclusive-gabe-newell-interview/|url-status=live}}</ref>

Valve's first game was ''[[Half-Life (video game)|Half-Life]]'', a [[first-person shooter]] (FPS) with elements of horror.<ref name="flhalflife22">{{cite web |title=The Final Hours of Half-Life: The id visit |url=http://uk.gamespot.com/features/halflife_final/part22.html |url-status=dead |archive-url=https://web.archive.org/web/20110223141855/http://uk.gamespot.com/features/halflife_final/part22.html |archive-date=February 23, 2011 |access-date=September 12, 2006 |website=[[GameSpot]]}}</ref> The development was aided by access to the [[Quake engine|''Quake'' engine]] by [[id Software]]; Valve modified this engine into their [[GoldSrc]] engine.<ref name="hist" /> After struggling to find a publisher, Valve eventually signed with [[Sierra On-Line]].<ref name="hist" />

''Half-Life'' was released in November 1998<ref name="fhhalflife5">{{cite web |url=http://uk.gamespot.com/features/halflife_final/part5.html |title=The Final Hours of Half-Life: Reassembling the Pieces |website=GameSpot |archive-url=https://web.archive.org/web/20110225022620/http://uk.gamespot.com/features/halflife_final/part5.html |archive-date=February 25, 2011 |url-status=dead |access-date=September 14, 2006}}</ref> and was a critical and commercial success.<ref name="cgw">{{cite magazine |url=http://www.gamespot.com/action/halflif/review_cgw.html |title=Half-Life |last=Green |first=Jeff |date=February 1, 1999 |magazine=[[Computer Gaming World]] |archive-url=https://web.archive.org/web/20020209221334/http://www.gamespot.com/action/halflif/review_cgw.html |archive-date=February 9, 2002 |access-date=April 14, 2010}}</ref><ref name="Gamespotrev">{{cite web |url=http://www.gamespot.com/reviews/half-life-review/1900-2537398/ |title=Half-Life Review |website=GameSpot |archive-url=https://web.archive.org/web/20131031232543/http://www.gamespot.com/reviews/half-life-review/1900-2537398/ |archive-date=October 31, 2013 |url-status=live |access-date=April 25, 2007}}</ref><ref name="gamespotfame">{{cite web |url=http://www.gamespot.com/articles/greatest-games-of-all-time-half-life/1100-6171044/ |title=Greatest Games of All Time: Half-Life |last=Rorie |first=Matthew |date=May 18, 2007 |website=GameSpot |archive-url=https://web.archive.org/web/20150119235122/http://www.gamespot.com/articles/greatest-games-of-all-time-half-life/1100-6171044/ |archive-date=January 19, 2015 |url-status=live |access-date=March 31, 2016}}</ref> With its realism, [[Scripted sequence|scripted sequences]] and seamless narrative, it had a lasting influence; according to ''[[IGN]]'' in 2014, the history of the FPS genre "breaks down pretty cleanly into pre-''Half-Life'' and post-''Half-Life'' eras".<ref>{{cite web |url=https://ign.com/top/shooters/1 |title=Half-Life – #1 Top Shooters |date=September 13, 2013 |website=IGN|archive-url=https://web.archive.org/web/20140228203738/http://www.ign.com/top/shooters/1 |archive-date=February 28, 2014 |url-status=live |access-date=February 23, 2014}}</ref>

Valve enlisted [[Gearbox Software]] to develop three [[Expansion pack|expansions]] for ''Half-Life'': ''[[Half-Life: Opposing Force|Opposing Force]]'' (1999), ''[[Half-Life: Blue Shift|Blue Shift]]'' (2001) and ''[[Half-Life: Decay|Decay]]'' (2001).<ref name="hist" /><ref>{{cite web |url=https://www.ign.com/articles/2017/08/28/gearbox-ceo-i-dont-know-that-we-could-or-should-make-half-life-2-episode-3-a-ign-unfiltered |title=Gearbox CEO: 'I Don't Know That We Could or Should' Make Half-Life 2: Episode 3 — IGN Unfiltered |first=Alex |last=Osborn |date=August 28, 2017 |website=ign.com |access-date=July 5, 2018 |archive-date=July 5, 2018 |archive-url=https://web.archive.org/web/20180705233401/http://www.ign.com/articles/2017/08/28/gearbox-ceo-i-dont-know-that-we-could-or-should-make-half-life-2-episode-3-a-ign-unfiltered |url-status=live }}</ref> In 1998, Valve acquired TF Software, a group that had made the popular ''Team Fortress'' [[mod (video gaming)|mod]] for ''Quake'', and remade it for GoldSrc as ''[[Team Fortress Classic]]'' in 1999.<ref>{{cite web |title=Team Fortress Full Speed Ahead |url=http://www.gamespot.com/articles/team-fortress-full-speed-ahead/1100-2463316/ |website=GameSpot |access-date=June 2, 2016 |url-status=live |archive-url=https://web.archive.org/web/20140323205856/http://www.gamespot.com/articles/team-fortress-full-speed-ahead/1100-2463316/ |archive-date=March 23, 2014}}</ref> Valve released the [[software development kit]] (SDK) for the GoldSrc engine, facilitating numerous user-created mods. They acquired the developers of one popular mod, ''[[Counter-Strike]]'', to create a standalone ''Counter-Strike'' game.<ref name="hist" /> Happy with Valve's success, Harrington sold his stake in Valve to Newell in 2000.<ref name="Geoff" /><ref name="flhalflife22" />

Valve's publishing agreement meant Sierra owned the ''Half-Life'' [[intellectual property]] and held exclusive publishing rights to future Valve games. In 2001, Valve renegotiated by threatening to cease game development and develop other software, using an offer of a partnership from [[Amazon (company)|Amazon]] to create a digital storefront as a bargaining chip. After the agreement with Sierra was amended, Valve gained the ''Half-Life'' intellectual property and online distribution rights for its games.<ref name=":5">{{Cite news |last=Carpenter |first=Lincoln |date=2024-09-13 |title='There's an alternate universe where Half-Life disappeared after release': Valve's first marketing strategist Monica Harrington says she helped navigate its way out of early disaster |url=https://www.pcgamer.com/games/fps/theres-an-alternate-universe-where-half-life-disappeared-after-release-valves-first-marketing-strategist-monica-harrington-says-she-helped-navigate-its-way-out-of-early-disaster/ |access-date=2024-12-12 |work=[[PC Gamer]] |language=en}}</ref><ref>https://www.gamesradar.com/games/fps/valve-would-never-ship-another-game-former-exec-forced-half-life-publishers-hand-by-saying-gabe-newell-and-the-team-would-pivot-away-from-game-dev/</ref>

=== Source, Steam, and ''Half-Life 2'' (2003–2010) ===
In 2003, Valve moved to [[Bellevue, Washington]], and [[Incorporation (business)|reincorporated]] as Valve Corporation.<ref name="hist" /> In 2010, the office moved to a larger location in Bellevue. In 2016, Valve signed a nine-floor lease in the [[Lincoln Square (Bellevue)|Lincoln Square]] complex in downtown Bellevue, doubling the size of its offices.<ref name="Levy-2016">{{cite news |last=Levy |first=Nat |date=August 3, 2016 |title=Valve leases nine floors in planned skyscraper, more than doubling its headquarters size |url=https://www.geekwire.com/2016/valve-leases-nine-floors-downtown-bellevue-doubling-office-space/ |work=[[GeekWire]] |access-date=August 3, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160804191933/http://www.geekwire.com/2016/valve-leases-nine-floors-downtown-bellevue-doubling-office-space/ |archive-date=August 4, 2016}}</ref>

Valve began developing ''[[Half-Life 2]]'' six months after the release of the first ''Half-Life'', using its new in-house engine, [[Source (game engine)|Source]].<ref name="Geoff">{{Cite web|last=Geoff|first=Keighley|author-link=Geoff Keighley|title=The Final Hours of Half-Life 2|url=https://www.gamespot.com/articles/the-final-hours-of-half-life-2/1100-6112889/|url-status=live|archive-url=https://web.archive.org/web/20191226173658/https://www.gamespot.com/articles/the-final-hours-of-half-life-2/1100-6112889/|archive-date=December 26, 2019|access-date=November 30, 2019|website=[[GameSpot]]}}</ref> With advanced [[Physics engine|physics systems]] and an increased focus on story and characters, it received critical acclaim upon its release in 2004. By 2011, it had sold 12 million copies.<ref>{{Cite news|last=Chiang|first=Oliver|date=February 28, 2011|title=The Master of Online Mayhem|work=Forbes|url=https://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html|url-status=live|archive-url=https://web.archive.org/web/20110213025041/http://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html|archive-date=February 13, 2011}}</ref> 

In 2002, Valve launched [[Steam (service)|Steam]], a digital storefront and delivery platform.<ref>{{cite magazine |url=https://www.pcmag.com/article2/0,2817,41291,00.asp |title=Valve Changes Online Gaming Rules |first=Loyd |last=Case |magazine=[[PC Magazine]] |date=March 22, 2002 |access-date=February 14, 2016 |url-status=dead|archive-url=https://web.archive.org/web/20160302232150/http://www.pcmag.com/article2/0,2817,41291,00.asp |archive-date=March 2, 2016 }}</ref><ref>{{cite web |last=Lee |first=James |title=The Last of the Independents? |date=April 30, 2008 |url=http://www.gamesindustry.biz/articles/the-last-of-the-independents- |publisher=GamesIndustry.biz |access-date=July 9, 2010 |url-status=live |archive-url=https://web.archive.org/web/20170815031153/http://www.gamesindustry.biz/articles/the-last-of-the-independents- |archive-date=August 15, 2017 }}</ref> Steam initially offered only Valve games, and was mandatory to install ''Half-Life 2'', but became a publisher of third-party games.<ref name="forbes-gnprofile">{{cite web |last=Chiang |first=Oliver |title=The Master of Online Mayhem |url=https://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html |work=[[Forbes]] |access-date=February 14, 2011 |url-status=live |archive-url=https://web.archive.org/web/20110213025041/http://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html |archive-date=February 13, 2011 }}</ref> As Valve became its own publisher via Steam, it transitioned to a [[flat organization]]. Outside of executive management, Valve does not have bosses and uses an [[open allocation]] system, allowing employees to move between departments at will.<ref>{{cite magazine|last=Suddath|first=Claire|date=April 25, 2012|title=What Makes Valve Software the Best Office Ever?|url=https://www.bloomberg.com/news/articles/2012-04-25/what-makes-valve-software-the-best-office-ever|url-status=live|magazine=Bloomberg|archive-url=https://web.archive.org/web/20120815155709/http://www.businessweek.com/articles/2012-04-25/what-makes-valve-software-the-shangri-la-of-offices|archive-date=August 15, 2012|access-date=May 1, 2022}}</ref><ref>{{cite magazine|last=Suddath|first=Claire|date=April 27, 2012|title=Why ThereAre No Bosses At Valve|url=https://www.bloomberg.com/news/articles/2012-04-27/why-there-are-no-bosses-at-valve|url-status=live|magazine=Bloomberg|archive-url=https://web.archive.org/web/20130904010143/http://www.businessweek.com/articles/2012-04-27/why-there-are-no-bosses-at-valve|archive-date=September 4, 2013|access-date=May 1, 2022}}</ref>

After having taken five years to develop ''Half-Life 2'', Valve moved to [[Episodic video game|episodic development]], planning to release shorter games more frequently.<ref name="Crossley-2011">{{Cite magazine |last=Crossley |first=Rob |date=May 9, 2011 |title=The Valve manifesto |url=http://www.develop-online.net/features/1184/The-Valve-manifesto/ |url-status=live |archive-url=https://web.archive.org/web/20130709213641/http://www.develop-online.net/features/1184/The-Valve-manifesto |archive-date=July 9, 2013 |access-date=July 19, 2020 |magazine=[[MCV/Develop]]}}</ref> ''[[Half-Life 2: Episode One]]'', the first in a planned trilogy of episodic ''Half-Life 2'' sequels, was released in 2006.<ref>{{Cite web|last=Dobson|first=Jason|title=Half-Life 2: Episode One Dated, Trilogy Confirmed|url=https://www.gamedeveloper.com/pc/-i-half-life-2-episode-one-i-dated-trilogy-confirmed|access-date=May 1, 2022|website=[[Game Developer (website)|Game Developer]]|date=May 25, 2006|archive-date=May 16, 2022|archive-url=https://web.archive.org/web/20220516145404/https://www.gamedeveloper.com/pc/-i-half-life-2-episode-one-i-dated-trilogy-confirmed|url-status=live}}</ref> ''[[Half-Life 2: Episode Two|Episode Two]]'' followed in 2007, alongside the multiplayer game ''[[Team Fortress 2]]'' and the puzzle game ''[[Portal (video game)|Portal]]'', developed from the student project ''[[Narbacular Drop]]''.<ref name="seattletimes">{{cite web | url =https://www.seattletimes.com/business/backstory-to-blockbuster-game-portal-2-is-a-real-cinderella-tale/ | title = Backstory to blockbuster game 'Portal 2' is a real Cinderella tale | first = Breir | last = Dudley | date = April 17, 2011 | access-date = May 1, 2022 | work = [[The Seattle Times]] | archive-date = April 20, 2011 | archive-url = https://web.archive.org/web/20110420135500/http://seattletimes.nwsource.com/html/businesstechnology/2014794592_brier18.html | url-status = dead }}</ref> In January 2008, Valve announced the acquisition of [[Turtle Rock Studios]],<ref name="Valve 2008-01-10">{{cite press release|title=Valve Acquires Turtle Rock Studios|url=http://store.steampowered.com/news/1401/|publisher=Valve|date=January 10, 2008|access-date=January 10, 2008|url-status=live|archive-url=https://web.archive.org/web/20081015071006/http://store.steampowered.com/news/1401/|archive-date=October 15, 2008}}</ref> which was renamed Valve South.<ref>{{cite web|last=Robinson|first=Martin|date=February 11, 2014|title=Why Turtle Rock left Valve|website=[[Eurogamer]]|url=https://www.eurogamer.net/why-turtle-rock-left-valve|access-date=May 1, 2022|archive-date=May 2, 2022|archive-url=https://web.archive.org/web/20220502011646/https://www.eurogamer.net/why-turtle-rock-left-valve|url-status=live}}</ref> Turtle Rock developed ''[[Left 4 Dead]]'' and ''[[Left 4 Dead 2]]'' while associated with Valve. Turtle Rock Studios spun out of Valve again in March 2010.<ref>{{cite web|last=Bramwell|first=Tom|date=March 18, 2010|title=Turtle Rock Studios reforms|website=[[Eurogamer]]|url=https://www.eurogamer.net/turtle-rock-studios-reforms|access-date=May 1, 2022|archive-date=May 2, 2022|archive-url=https://web.archive.org/web/20220502011649/https://www.eurogamer.net/turtle-rock-studios-reforms|url-status=live}}</ref> ''[[Forbes]]'' estimated that Valve had grossed $70 million in 2005.<ref name="Chiang-2011">{{Cite news |last=Chiang |first=Oliver |date=February 9, 2011 |title=The Master of Online Mayhem |url=https://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html |url-status=live |archive-url=https://web.archive.org/web/20110213025041/http://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html |archive-date=February 13, 2011 |access-date=October 13, 2016 |newspaper=Forbes}}</ref> 

=== Transition to services (2010–2014) ===
[[File:Valve old logo.svg|thumb|right|Logo until 2018]]
In 2009, Valve hired [[IceFrog]], the developer of ''[[Defense of the Ancients]]'', a ''[[Warcraft III: Reign of Chaos|Warcraft III]]'' mod.<ref>{{cite web |author=Aerox |url=https://www.destructoid.com/valve-hires-dota-allstars-developer/ |title=Valve hires DotA: Allstars developer |date=October 5, 2009 |website=[[Destructoid]] |archive-url=https://web.archive.org/web/20211026221203/https://www.destructoid.com/valve-hires-dota-allstars-developer/ |archive-date=October 26, 2021}}</ref> IceFrog led the development of a sequel not associated with the ''Warcraft'' elements, ''[[Dota 2]]'', released in 2013.<ref>{{cite magazine|last=Biessener|first=Adam|date=October 13, 2010|title=Valve's New Game Announced, Detailed: Dota 2|url=https://gameinformer.com/b/features/archive/2010/10/13/dota-2-announced-details.aspx|url-status=live|magazine=[[Game Informer]]|archive-url=https://web.archive.org/web/20101016155010/http://gameinformer.com/b/features/archive/2010/10/13/dota-2-announced-details.aspx|archive-date=October 16, 2010|access-date=October 8, 2012}}</ref> Alongside ''Dota 2'' in 2011, Valve started [[The International (Dota 2)|the International]], an annual [[eSport|esport]]s tournament for ''Dota 2'' with a prize pool supported by Valve and funds from microtransactions from [[battle pass]]es purchased by players.<ref name="Reilly">{{cite web|last=Reilly|first=Jim|date=August 1, 2011|title=Valve Goes Big with Dota 2 Tournament|url=http://www.ign.com/articles/2011/08/01/valve-goes-big-with-dota-2-tournament|archive-url=https://web.archive.org/web/20121109072431/http://www.ign.com/articles/2011/08/01/valve-goes-big-with-dota-2-tournament|archive-date=November 9, 2012|publisher=IGN}}</ref> Valve released ''[[Portal 2]]'' in April 2011.<ref name="vg247 early release">{{cite web |last=Hillier |first=Brenna |date=April 18, 2011 |title=No more potatoes: Portal 2 available right now on Steam |url=https://www.vg247.com/portal-2-available-now |url-status=live |archive-url=https://web.archive.org/web/20110420083833/http://www.vg247.com/2011/04/19/portal-2-available-now/ |archive-date=April 20, 2011 |access-date=May 1, 2022 |publisher=[[VG247]] |df=mdy-all}}</ref> As with the original ''Portal'', Valve employed a [[DigiPen Institute of Technology|Digipen]] student team to help develop it; the team behind ''[[Tag: The Power of Paint]]'' implemented the new gel gameplay.<ref>{{cite web |last=Remo |first=Chris |date=September 20, 2010 |title=Synthesizing Portal 2 |url=https://www.gamasutra.com/view/feature/6141/synthesizing_portal_2.php |url-status=dead |archive-url=https://archive.today/20120908060252/http://www.gamasutra.com/view/feature/6141/synthesizing_portal_2.php |archive-date=September 8, 2012 |access-date=May 1, 2022 |website=[[Game Developer (website)|Game Developer]] |df=mdy-all}}</ref>

The [[Screen Digest]] analyst Ed Barton estimated Valve's 2010 revenue to be in the "high hundreds of millions of dollars".<ref name="Levy-2016" /> As of 2011, Valve had an estimated worth of $2 to 4 billion and employed 250 people; according to Newell, this made it more profitable per employee than [[Google]] or [[Apple Inc.|Apple]]. Most of Valve's revenue came from Steam, which controlled 50 to 70% of the market for downloaded PC games in 2011.<ref name="Chiang-2011" />

By 2011, Valve had replaced episodic development with a platform-oriented approach, whereby games such as ''Left 4 Dead 2'' and ''Team Fortress 2'' were continually updated through Steam updates.<ref name="Crossley-2011" /> In June 2012, Valve hired the economist [[Yanis Varoufakis]] to study the online economies of their games.<ref>{{Cite news |date=2012-06-15 |title=Game maker Valve appoints in-house video games economist |url=https://www.bbc.com/news/technology-18456171 |access-date=2024-11-19 |work=[[BBC News]] |language=en-GB}}</ref> That December, Valve acquired Star Filled Studios, a two-person studio, to open a San Francisco office.<ref>{{cite web |last=Hing |first=David |url=http://www.bit-tech.net/news/gaming/2012/12/17/vavle-acquires-or-hires-star-filled-studios/1 |title=Valve acquires or hires Star Filled Studios |work=bit-gamer.net |publisher=Bit-tech.net |date=December 17, 2012 |access-date=August 31, 2013 |url-status=live |archive-url=https://web.archive.org/web/20130714185817/http://www.bit-tech.net/news/gaming/2012/12/17/vavle-acquires-or-hires-star-filled-studios/1 |archive-date=July 14, 2013}}</ref> Valve closed the office in August 2013 when they decided it had little benefit.<ref>{{cite web |last=Reilly |first=Luke |url=https://www.ign.com/articles/2013/08/08/valves-san-francisco-remote-office-shut-down |title=Valve's San Francisco Remote Office Shut Down |date=August 7, 2013 |website=IGN |url-status=live |archive-url=https://web.archive.org/web/20130902154851/http://www.ign.com/articles/2013/08/08/valves-san-francisco-remote-office-shut-down |archive-date=September 2, 2013}}</ref> At the 2013 [[D.I.C.E. Summit]], Newell announced that he and the film director [[J. J. Abrams]] were collaborating to produce a ''Half-Life'' or ''Portal'' film, as well as a possible game.<ref>{{cite web |url=http://lambdageneration.com/posts/j-j-abrams-collaborating-with-valve-on-possible-new-game-as-well-as-half-life-or-portal-feature-films/ |title=LambdaGeneration 2.0 – Coming Soon |date=February 6, 2013 |publisher=Lambda Generation |access-date=August 31, 2013 |url-status=live |archive-url=https://web.archive.org/web/20130501003800/http://lambdageneration.com/posts/j-j-abrams-collaborating-with-valve-on-possible-new-game-as-well-as-half-life-or-portal-feature-films/ |archive-date=May 1, 2013}}</ref>

In the 2010s, Valve released fewer games and invested in hardware development. Newell intended to make Valve more like [[Nintendo]], which develops games in tandem with hardware, allowing them to create innovative games such as ''[[Super Mario 64]]''.<ref name="Keighley-2020">{{Cite book |last=Keighley |first=Geoff |title=The Final Hours of Half-Life Alyx |date=2020 |publisher=Steam |author-link=Geoff Keighley}}</ref> Valve initially focused on [[augmented reality]], but in 2013 Newell laid off many staff to focus on [[virtual reality]] (VR).<ref name="Keighley-2020"/> In 2015, Valve released the [[Steam Machine (hardware platform)|Steam Machine]], a line of [[gaming computer]]s, which sold poorly.<ref name="Keighley-2020"/> Media commentators speculated that Valve's transition to service provider with Steam, which generated an estimated $3.4 billion in 2017, had driven it away from game development.<ref>{{cite web|last=Cooper|first=Ryan|date=June 4, 2019|title=How capitalism killed one of the best video game studios|url=https://theweek.com/articles/844962/how-capitalism-killed-best-video-game-studios|access-date=June 7, 2019|work=[[The Week]]|archive-date=June 7, 2019|archive-url=https://web.archive.org/web/20190607021550/https://theweek.com/articles/844962/how-capitalism-killed-best-video-game-studios|url-status=live}}</ref> 

Valve canceled games including [[Unreleased Half-Life games|numerous ''Half-Life'' projects]] (including ''[[Half-Life 2: Episode Three|Episode Three]]''), ''Left 4 Dead 3'', a [[Soulslike]] game, and a [[voxel]]-based game, ''A.R.T.I''. Additional VR projects included ''SimTrek'', developed by members of the ''[[Kerbal Space Program]]'' development team, and a new VR device, Vader, that was determined to be too costly for consumers.<ref>{{cite magazine | url = https://www.pcgamer.com/at-least-5-half-life-projects-were-cancelled-before-alyx-including-half-life-3/ | title = At least 5 Half-Life projects were cancelled before Alyx, including Half-Life 3 | first = Andy | last = Chalk | date = July 9, 2020 | access-date = July 9, 2020 | magazine = [[PC Gamer]] | archive-date = July 11, 2020 | archive-url = https://web.archive.org/web/20200711074843/https://www.pcgamer.com/at-least-5-half-life-projects-were-cancelled-before-alyx-including-half-life-3/ | url-status = live }}</ref><ref>{{cite web | url = https://www.ign.com/articles/half-life-3-left-4-dead-3-details-cancelled-valve | title = Details of Multiple Cancelled Valve Projects Revealed, Including Half-Life 3 | first = Joe | last = Skrebels | date = July 9, 2020 | access-date = July 9, 2020 | work = [[IGN]] | archive-date = July 13, 2020 | archive-url = https://web.archive.org/web/20200713154054/https://www.ign.com/articles/half-life-3-left-4-dead-3-details-cancelled-valve | url-status = live }}</ref> According to the designer [[Robin Walker (game designer)|Robin Walker]], the abundance of projects that failed to gain traction, with no shared vision, damaged morale.<ref name="Keighley-2020" /> Many players grew frustrated in anticipation of a new ''Half-Life'' game.<ref>{{cite web |date=November 19, 2018 |title=Whatever happened to Half-Life 3? The complete saga so far |url=https://www.pcgamesn.com/half-life-3/half-life-3-release-date-story-gameplay-art |access-date=November 19, 2018 |work=[[PCGamesN]] |archive-date=October 21, 2019 |archive-url=https://web.archive.org/web/20191021094127/https://www.pcgamesn.com/half-life-3/half-life-3-release-date-story-gameplay-art |url-status=live }}</ref>

===Source 2, virtual reality and ''Half-Life: Alyx'' (2015–present)===
Valve announced the [[Source 2]] engine in March 2015 and ported ''Dota 2'' to it that September.<ref>{{cite news|last=Langley|first=Hugh|date=March 3, 2015|title=Valve just announced its plans for Steam Machines... and Source 2|work=[[Tech Radar]]|url=https://www.techradar.com/news/gaming/valve-just-announced-its-plans-for-steam-machines-and-source-2-1287082|url-status=live|access-date=March 3, 2015|archive-url=https://web.archive.org/web/20150306030610/http://www.techradar.com/news/gaming/valve-just-announced-its-plans-for-steam-machines-and-source-2-1287082|archive-date=March 6, 2015}}</ref><ref>{{cite web|last1=Macy|first1=Seth|title=Dota 2 Now Valve's First Ever Source 2 Game|url=https://www.ign.com/articles/2015/09/09/dota-2-now-valves-first-ever-source-2-game|url-status=live|archive-url=https://web.archive.org/web/20150910075128/http://www.ign.com/articles/2015/09/09/dota-2-now-valves-first-ever-source-2-game|archive-date=September 10, 2015|access-date=September 9, 2015|website=IGN|date=September 9, 2015}}</ref> That year, Valve collaborated with the electronics company [[HTC]] to develop the [[HTC Vive]], a [[VR headset]] released in 2016.<ref name="The Final Hours">{{Cite web|last=Keighley|first=Geoff|author-link=Geoff Keighley|date=November 21, 2019|title=The Final Hours of Half-Life: Alyx|url=https://www.youtube.com/watch?v=-9K0eJEmMEw|url-status=live|archive-url=https://web.archive.org/web/20191121191644/https://www.youtube.com/watch?v=-9K0eJEmMEw|archive-date=November 21, 2019|access-date=November 21, 2019|via=[[YouTube]]}}</ref> Valve experimented with VR games, and in 2016 released ''[[The Lab (video game)|The Lab]]'', a collection of VR minigames.<ref name="Reeves">{{Cite magazine|last=Reeves|first=Ben|title=Valve On Why Half-Life: Alyx Needed To Be In VR|url=https://www.gameinformer.com/interview/2020/03/03/valve-on-why-half-life-alyx-needed-to-be-in-vr|url-status=live|archive-url=https://web.archive.org/web/20200304171602/https://www.gameinformer.com/interview/2020/03/03/valve-on-why-half-life-alyx-needed-to-be-in-vr|archive-date=March 4, 2020|access-date=March 4, 2020|magazine=Game Informer}}</ref>

Valve recognized that many players wanted a more ambitious VR [[AAA game]], and began exploring the development of a major VR game.<ref name="Reeves" /> They developed several prototypes, with three further VR projects under development by 2017.<ref>{{Cite web|last=Campbell|first=Colin|date=February 10, 2017|title=Valve is working on three full VR games|url=https://www.polygon.com/virtual-reality/2017/2/10/14580932/valve-is-working-on-three-full-vr-games|url-status=live|archive-url=https://web.archive.org/web/20170302161616/http://www.polygon.com/virtual-reality/2017/2/10/14580932/valve-is-working-on-three-full-vr-games|archive-date=March 2, 2017|access-date=November 21, 2019|website=Polygon}}</ref><ref>{{Cite web|last=Hollister|first=Sean|title=Valve, of Half-Life and Portal, is making 3 full VR games|url=https://www.cnet.com/news/valve-makers-of-half-life-and-portal-are-working-on-three-full-vr-games/|url-status=live|archive-url=https://web.archive.org/web/20180310111923/https://www.cnet.com/news/valve-makers-of-half-life-and-portal-are-working-on-three-full-vr-games/|archive-date=March 10, 2018|access-date=November 21, 2019|website=CNET}}</ref> Finding that the portal systems of their puzzle series ''[[Portal (series)|Portal]]'' were disorienting in VR, they settled on ''Half-Life''.<ref name="The Final Hours" /> Walker said that ''Half-Life 3'' had been a "terrifyingly daunting prospect", and the team saw VR as a way to return to the series.<ref name="The Final Hours" />

Full development of a VR ''Half-Life'' game started around late 2016, with the largest team in Valve's history.<ref name="arstech fhalyx" /><ref name="finalhours alyx">{{cite web|last=Keighley|first=Geoff|author-link=Geoff Keighley|date=November 21, 2019|title=The Final Hours of Half-Life: Alyx|url=https://www.youtube.com/watch?v=-9K0eJEmMEw|access-date=November 21, 2019|via=[[YouTube]]|archive-date=November 21, 2019|archive-url=https://web.archive.org/web/20191121191644/https://www.youtube.com/watch?v=-9K0eJEmMEw|url-status=live}}</ref> Valve acquired the 3D audio software developer Impulsonic in January 2017.<ref>{{cite web |url=https://uploadvr.com/valve-acquires-3d-audio-company-impulsonic/ |title=Sounds Good: Valve Acquires 3D Audio Company Impulsonic |first=Jamie |last=Feltham |date=January 13, 2017 |website=[[UploadVR]] |access-date=February 3, 2020 |archive-date=February 3, 2020 |archive-url=https://web.archive.org/web/20200203075925/https://uploadvr.com/valve-acquires-3d-audio-company-impulsonic/ |url-status=live }}</ref> In April 2018, Valve acquired the independent developer [[Campo Santo (company)|Campo Santo]], known for the 2016 adventure game ''[[Firewatch]]''. Campo Santo planned to develop its own games under Valve, though they initially helped develop ''Half-Life: Alyx''.<ref>{{cite web |url=https://www.polygon.com/2018/4/21/17266690/valve-campo-santo-firewatch-steam |title=Valve acquires Firewatch developer, Campo Santo |first=Julia |last=Alexander |date=April 21, 2018 |access-date=April 21, 2018 |work=[[Polygon (website)|Polygon]] |archive-date=December 3, 2019 |archive-url=https://web.archive.org/web/20191203225838/https://www.polygon.com/2018/4/21/17266690/valve-campo-santo-firewatch-steam |url-status=live }}</ref><ref name="PC Gamer 12">{{cite magazine |url=https://www.pcgamer.com/uk/half-life-alyx-release-date-trailer-everything-we-know/ |title=12 big things we learned about Half-Life: Alyx |first1=Andy |last1=Kelly |first2=Christopher |last2=Livingston |date=November 21, 2019 |magazine=[[PC Gamer]] |url-status=live |archive-url=https://web.archive.org/web/20191123125928/https://www.pcgamer.com/uk/half-life-alyx-release-date-trailer-everything-we-know/ |archive-date=November 23, 2019 |access-date=March 27, 2020}}</ref>

In November 2018, Valve released ''[[Artifact (video game)|Artifact]]'', a [[digital collectible card game]] based on ''Dota 2'', with design by [[Richard Garfield]], the creator of ''[[Magic: The Gathering]]''. ''Artifact'' had unusual pay-for mechanics to acquire new cards, and did not draw a large playerbase, losing 95% of players months after release.<ref name="Disappointment">{{cite web | url = https://www.ign.com/articles/gabe-newell-artifact-giant-disappointment-valve | title = Gabe Newell: Artifact Was a 'Giant Disappointment' | first = Joe | last = Skrebels | date = March 18, 2020 | access-date = March 18, 2020 | work = [[IGN]] | archive-date = March 19, 2020 | archive-url = https://web.archive.org/web/20200319155343/https://www.ign.com/articles/gabe-newell-artifact-giant-disappointment-valve | url-status = live }}</ref> In April 2021, Valve abandoned efforts to reboot the project, saying they had not found enough interested players to justify development.<ref>{{Cite news|last=Machkovech|first=Sam|date=April 3, 2021|title=Valve scraps revamped Artifact, dumps free, unfinished "2.0" version on Steam|url=https://arstechnica.com/gaming/2021/03/valve-scraps-revamped-artifact-dumps-free-unfinished-2-0-version-on-steam/|url-status=live|access-date=May 18, 2021|website=[[Ars Technica]]|archive-date=May 17, 2021|archive-url=https://web.archive.org/web/20210517202222/https://arstechnica.com/gaming/2021/03/valve-scraps-revamped-artifact-dumps-free-unfinished-2-0-version-on-steam/}}</ref> In June 2019, Valve released its second-generation VR hardware, the [[Valve Index]].<ref>{{Cite web |url=https://www.theverge.com/2019/4/30/18524167/valve-index-vr-headset-price-pre-order-date |title=Valve's Index VR headset will officially cost $999, and here's what it's all about |last=Hollister |first=Sean |date=April 30, 2019 |website=The Verge |access-date=June 5, 2019 |archive-date=April 26, 2022 |archive-url=https://web.archive.org/web/20220426060847/https://www.theverge.com/2019/4/30/18524167/valve-index-vr-headset-price-pre-order-date |url-status=live }}</ref> They also released ''[[Dota Underlords]]'' into early access, an [[auto battler]] based on a ''Dota 2'' community-created mode ''[[Dota Auto Chess]]''.<ref>{{cite web |url=https://www.polygon.com/2019/6/21/18683816/dota-underlords-auto-chess-clone |title=Dota Underlords feels like a clone of Auto Chess |first=Ryan |last=Gilliam |date=June 21, 2019 |website=[[Polygon (website)|Polygon]] |access-date=February 3, 2020 |archive-date=June 30, 2019 |archive-url=https://web.archive.org/web/20190630042648/https://www.polygon.com/2019/6/21/18683816/dota-underlords-auto-chess-clone |url-status=live }}</ref> 

In March 2020, Valve released ''[[Half-Life: Alyx]]'', a VR game.<ref>{{cite web|last=Marks|first=Tom|date=March 23, 2020|title=Valve Explains Why Half-Life 2: Episode 3 Was Never Made|url=https://www.ign.com/articles/valve-explains-why-half-life-2-episode-3-was-never-made|access-date=March 23, 2020|work=[[IGN]]|archive-date=March 23, 2020|archive-url=https://web.archive.org/web/20200323171744/https://www.ign.com/articles/valve-explains-why-half-life-2-episode-3-was-never-made|url-status=live}}</ref> It received acclaim<ref name="metacritic2">{{Cite web|title=Half-Life: Alyx for PC Reviews|url=https://www.metacritic.com/game/half-life-alyx/critic-reviews/?platform=pc|url-status=live|archive-url=https://web.archive.org/web/20200216062815/https://www.metacritic.com/game/pc/half-life-alyx|archive-date=February 16, 2020|access-date=April 2, 2020|publisher=[[Metacritic]]}}</ref> and was described as VR's first [[killer app]].<ref>{{Cite web|last=Carbotte|first=Kevin|title=Half-Life: Alyx Gameplay Review: (Almost) Every VR Headset Tested|url=https://www.tomshardware.com/uk/reviews/half-life-alyx-gameplay-vr-headset|access-date=March 24, 2020|website=Tom's Hardware|date=March 23, 2020}}</ref><ref>{{Cite web|last=Robinson|first=Andrew|date=March 23, 2020|title=Review: Half-Life Alyx is VR's stunning killer app|url=https://www.videogameschronicle.com/reviews/half-life-alyx|url-status=live|archive-url=https://web.archive.org/web/20200324213220/https://www.videogameschronicle.com/reviews/half-life-alyx|archive-date=March 24, 2020|access-date=March 24, 2020|website=VGC}}</ref><ref>{{Cite web|last=Oloman|first=Jordan|title=Half-Life: Alyx is a watershed moment for virtual reality {{!}} TechRadar|url=https://www.techradar.com/news/half-life-alyx-is-a-watershed-moment-for-virtual-reality|url-status=live|archive-url=https://web.archive.org/web/20200324211548/https://www.techradar.com/amp/news/half-life-alyx-is-a-watershed-moment-for-virtual-reality|archive-date=March 24, 2020|access-date=May 1, 2022|website=TechRadar|date=March 23, 2020}}</ref><ref>{{Cite web|date=December 27, 2019|title=CES 2020: Teslasuit Will Unveil New Haptic VR Gloves|url=https://www.techtimes.com/articles/246665/20191227/ces-2020-teslasuit-will-unveil-new-haptic-vr-gloves.htm|url-status=live|archive-url=https://web.archive.org/web/20200325084106/https://www.techtimes.com/amp/articles/246665/20191227/ces-2020-teslasuit-will-unveil-new-haptic-vr-gloves.htm|archive-date=March 25, 2020|access-date=May 1, 2022|website=Tech Times}}</ref> Newell said in January 2021 that the success of ''Alyx'' created desire within the company to develop more games, and that several were under development.<ref>{{cite web | url = https://www.videogameschronicle.com/news/gabe-newell-says-valve-has-multiple-games-in-development-and-wants-to-do-more-single-player/ | title = Gabe Newell says Valve has multiple games in development and 'wants to do more single-player' | first = Tom | last = Ivan | date = January 20, 2021 | access-date = January 20, 2021 | work = [[Video Games Chronicle]] | archive-date = January 20, 2021 | archive-url = https://web.archive.org/web/20210120172914/https://www.videogameschronicle.com/news/gabe-newell-says-valve-has-multiple-games-in-development-and-wants-to-do-more-single-player/ | url-status = live }}</ref> Valve collaborated with [[Netflix]] for ''[[Dota: Dragon's Blood]]'', an animated television series based on ''[[Dota]]'', which premiered in March 2021.<ref>{{cite web | url = https://kotaku.com/valve-netflix-are-making-a-dota-anime-1846283800 | title = Valve & Netflix Are Making A DOTA Anime | first = Luke | last = Plunkett | date = February 16, 2021 | access-date = February 16, 2021 | work = [[Kotaku]] | archive-date = February 17, 2021 | archive-url = https://web.archive.org/web/20210217001845/https://kotaku.com/valve-netflix-are-making-a-dota-anime-1846283800 | url-status = live }}</ref> In February 2022, Valve released the [[Steam Deck]], a portable game system that runs on [[SteamOS]].<ref>{{Cite magazine |last=Fenlon |first=Wes |date=February 25, 2022 |title=Steam Deck review |url=https://www.pcgamer.com/uk/steam-deck-review/ |access-date=March 14, 2022 |magazine=[[PC Gamer]] |language=en |archive-date=March 14, 2022 |archive-url=https://web.archive.org/web/20220314105414/https://www.pcgamer.com/uk/steam-deck-review/ |url-status=live }}</ref>  In September 2023, Valve released ''[[Counter-Strike 2]]''. It received generally favorable reviews, but player reception was mixed.<ref>{{Cite news |last=Stanton |first=Rich |date=2023-09-28 |title=What I think of Counter-Strike 2 on day 1 |url=https://www.pcgamer.com/initial-impressions-of-counter-strike-2/ |access-date=2024-08-07 |work=PC Gamer |language=en}}</ref><ref>{{Cite web |last=Shive |first=Chris |date=2023-10-03 |title=Review: Counter-Strike 2 |url=https://hardcoregamer.com/reviews/review-counter-strike-2/473627/ |access-date=2024-08-07 |website=Hardcore Gamer |language=en}}</ref> 

{{anchor|Deadlock}}In 2024, Valve began beta-testing a new multiplayer game, ''[[Deadlock (video game)|Deadlock]]'', a combination of a [[hero shooter]] and [[MOBA]].<ref>{{cite web | url = https://www.pcgamesn.com/deadlock/valve-steam-players | title = Valve's super secretive Deadlock game just hit a big player milestone | first = Will | last = Nelson | date = August 11, 2024 | accessdate = August 11, 2024 | work  = [[PCGamesN]] }}</ref> In September, staff members from Hopoo Games, developers of ''[[Risk of Rain]]'', announced that they had been employed at Valve.<ref>{{cite web |last=Caldwell |first=Brendan |title=Risk Of Rain creators wind down work on unannounced project and take jobs at Valve |url=https://www.rockpapershotgun.com/risk-of-rain-creators-wind-down-work-on-unannounced-project-and-take-jobs-at-valve |website=[[Rock Paper Shotgun]] |date=September 3, 2024 |access-date=September 3, 2024 }}</ref> According to a report by ''Forbes Australia'' published in December 2024, Valve had an annual revenue of $5 billion by 2023, with a 40% profit margin. Steam accounted for around 60% of this revenue, double that of 2019.<ref>{{Cite web |last=Pastis |first=Stephe |date=2024-12-06 |title=How Valve founder Gabe Newell turned ''Half-Life'' into a nearly $10 billion fortune |url=https://www.forbes.com.au/covers/magazine/how-valve-founder-gabe-newell-turned-half-life-into-a-nearly-10-billion-fortune/ |access-date=2024-12-11 |website=[[Forbes Australia]] |language=en-US}}</ref>