Valve Corporation

Valve Corporation, also known as Valve Software, is an American video game developer, publisher, hardware, and digital distribution company based in Bellevue, Washington. It created popular games like Half-Life, Counter-Strike, Portal, Team Fortress, Left 4 Dead, and Dota. It also made the Steam service and devices such as the Steam Machine, Steam Deck, and Valve Index.

Valve was started in 1996 by former Microsoft employees Gabe Newell and Mike Harrington. Their first big success was the first-person shooter game Half-Life in 1998, which became very popular. After Harrington left in 2000, Valve kept making successful games. In 2003, they launched Steam, a platform for buying and playing games digitally.

In the 2010s, Valve focused more on creating new hardware and virtual reality (VR) experiences. They introduced the Steam Machine console in 2015, the Valve Index VR headset in 2019, the VR game Half-Life: Alyx in 2020, and the portable Steam Deck system in 2022. The company is known for its unique way of working, where employees can choose their own projects, and for making games that are often listed among the greatest games of all time.

History

Founding and Half-Life (1996–2003)

Valve started in 1996 by two people who used to work at Microsoft: Gabe Newell and Mike Harrington. They picked a name that wasn’t too strong. Their first big game was Half-Life, a science fiction adventure game. It came out in 1998 and became very popular, changing how people saw video games.

After Half-Life, Valve made smaller games and expansions. They also made Team Fortress and Counter-Strike, which many players liked. In 2000, Harrington sold his part of the company to Newell.

Source, Steam, and Half-Life 2 (2003–2010)

Valve moved to Bellevue, Washington in 2003 and changed its name to Valve Corporation. They made a new game called Half-Life 2 in 2004, which was very popular. In 2002, they also started Steam, an online service for buying and playing games. At first, Steam sold only Valve games, but later it added games from other companies too.

Valve made shorter games after Half-Life 2, like Half-Life 2: Episode One and Episode Two, along with games like Team Fortress 2 and Portal. They also made Left 4 Dead, a game about surviving zombies.

Transition to services (2010–2014)

In 2013, Valve released Dota 2, a competitive online game. They also started a yearly tournament called The International for Dota 2 players. Valve kept updating games like Left 4 Dead 2 and Team Fortress 2 using Steam.

Valve tried making new types of games and devices but had some trouble. Some games were canceled, and many players waited for a new Half-Life game.

Source 2, virtual reality and Half-Life: Alyx (2015–present)

Valve introduced a new game engine called Source 2 in 2015. They worked with HTC to make the Vive, a virtual reality headset. In 2020, they released Half-Life: Alyx, a virtual reality game that people liked a lot.

Valve also released a portable gaming device called the Steam Deck in 2022 and updated their game Counter-Strike to Counter-Strike 2 in 2023. In 2024, they began testing a new game called Deadlock, mixing parts of hero shooters and strategy games.

Structure

Valve started like other game companies with a normal way of organizing workers. But this changed when Valve began selling games directly to players through Steam. They moved to a more flexible way of working where most jobs do not have bosses.

After finishing Half-Life 2, Valve let employees choose what projects to work on. This means workers decide together what to do next. However, this method can make it hard to start new projects because not everyone may agree. In 2020, Valve said this style slowed down their work in the 2010s. But later projects like their virtual reality games and Half-Life: Alyx helped the company focus better.

Valve also has a fun way of talking about when games come out, called “Valve time.” This means the real release date might be different from what was first promised. The company jokes about this and even tracks these changes on its website.

Valve tests its games a lot while they are being made. They watch how players try the games and change things based on what they see. This helps make sure the games are fun and work well for everyone.

Products

Games

Main article: List of Valve games

Valve makes and sells many popular video games. Some of their single-player games include Half-Life and Portal. They also create multiplayer games like Counter-Strike, Team Fortress 2, Dota 2, Day of Defeat, and Artifact. They also published Left 4 Dead and made Left 4 Dead 2. Some games they planned but never finished include Half-Life games, like Episode Three.

Valve’s games are famous for being creative and advanced.

Engines

Main articles: GoldSrc, Source (game engine), and Source 2

Valve has made several tools that help create their games. One tool, called GoldSrc, was built using parts of another tool named Quake engine by id Software, and it was used for Half-Life. Another tool, Source, was made from scratch and used in many games like Half-Life 2. A newer version, Source 2, started in 2015 and is used in games such as Dota 2.

Steam

Main article: Steam (service)

Valve created Steam, an online service where people can buy and play games. They introduced Steam in 2002 and launched it in 2003. At first, Steam helped update Valve’s games.

Steam Machine

Main article: Steam Machine (hardware platform)

Valve was unhappy with how some computer systems were changing and thought an open system like Linux would be better for games. In 2012, they announced plans for a special console called the “Steam Box.” In 2015, some computer companies made their own versions of the Steam Machine. But by 2016, not many people bought them, so Valve stopped making the main Steam Machine.

Steam Controller

Main articles: Steam Controller (1st generation) and Steam Controller (2nd generation)

Valve made two types of special controllers to use with their Steam games. The first came out in November 2015, and the second in May 2026. Both controllers have small pads that can feel different actions.

Valve Index and virtual reality

Main articles: Valve Index and Steam Frame

In March 2015, Valve worked with a company named HTC to create a virtual reality system called SteamVR and a special headset called the HTC Vive. In June 2019, Valve made their own VR headset called the Valve Index. In November 2025, they announced a new standalone VR headset called the Steam Frame.

Steam Deck

Main article: Steam Deck

In July 2021, Valve announced the Steam Deck, a small device for playing games. It can also connect to a dock to play on a bigger screen. The Steam Deck started selling in February 2022.

Other projects

PowerPlay

PowerPlay was an idea by Valve and Cisco Systems to make online games respond faster, announced in January 2000. But after working on it for a year, they stopped the project in January 2001.

Pipeline

In July 2013, Valve started a project called Pipeline with ten high school students. They wanted to see if they could teach teenagers with little experience how to make video games.

Legal disputes

Valve Corporation v. Vivendi Universal Games

From 2002 to 2005, Valve had a legal problem with its publisher, Vivendi Universal Games. Valve made games like Half-Life, and had a contract with Vivendi’s Sierra Entertainment to publish them. When Valve made Half-Life 2, they changed the contract to control how games were sold online. Valve made a system called Steam for selling games online.

Vivendi said Valve broke the contract and tried to take control of Valve’s games. The court decided Valve was right, and Vivendi could not sell Valve’s games through internet cafes. This helped Valve keep control of its games and the Steam service.

Valve Corporation v. Activision Blizzard

In 2009, Valve sued Activision Blizzard. Activision had taken over Sierra Entertainment and hadn’t paid Valve all the money it owed from a past agreement. Valve wanted the rest of the money it was owed.

Dota intellectual property ownership

Defense of the Ancients (DotA) was a popular game mode made for Warcraft III: Reign of Chaos. A community creator named IceFrog helped make it and later worked for Valve. Valve created Dota 2 based on this work. Some of the original creators claimed they should share in the rights, but Valve kept control.

ACCC v. Valve Corporation

In 2014, Australia said Valve broke their rules by not letting people get refunds for digital games bought on Steam. Valve later changed its policy to allow refunds, but the court still said Valve had broken the rules before. Valve had to pay a fine and tell customers about their rights.

UFC Que Choisir v. Valve Corporation

In 2015, a group in France said Valve should let people resell their games. A court agreed at first, but later decisions supported Valve’s way of handling game sales.

Skins gambling

Valve was named in lawsuits about websites that let people gamble using special items from Counter-Strike: Global Offensive. Valve said it didn’t support these sites and asked them to stop using its system for gambling.

Anti-competitive practices

In 2017, European officials looked into Valve for stopping people in some countries from buying games on Steam. Valve said it had stopped doing this in the European Union in 2015.

In 2021, some gamers and a game developer said Valve made it too expensive and hard to sell games on other platforms besides Steam. These cases continue with more developers joining.

Valve Corporation v. Zaiger, LLC

In 2023, Valve sued a law firm that tried to force Valve to pay by threatening many small claims at once. The court dismissed the case, but later Valve changed its agreement so disputes would go to court instead of arbitration.

Valve Corporation v. Rothschild

Valve had legal problems with companies owned by Leigh Rothschild over patents. Valve won a big case in February 2026.