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=== Founding and ''Half-Life'' (1996β2003) === [[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 β #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 β 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>
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