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Blair Drummond

on 31 October 2012

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Transcript of Valve-->Steam-->SFM

The Business Model There was Half Life. In 1996 two Microsoft employees decided to found the company Valve. In 1998 their first game Half Life was published by Sierra Studios, and since that time through an innovative model the company owns approximately 70% of the online game distribution market, with it's application... Founded in 2003, Steam is an online game distribution system that integrates game sale (and sales), with the gaming community, and building your library and statistics into a unified interface. Despite the size of Valve in comparison to a company such as Electronic Arts (who is more than twice Valves value), and their game distribution system 'Origin'... Steam remains with 70% of the market share, and Origin doesn't even appear on the Wikipedia article. So why have they been so successful? Because they evolved Pine discusses 2 things in particular, the idea of Fake Real ,Real Fake, Real Real, or Fake Fake, and he also discusses 'The Progression of Economic Value'. Negating materials, this transition is parallel to video games --> video game distribution --> video game community. Steam marked the development of a videogame distribution, updating, and online service... But the next step was 'experience' In the summer of 2011 Valve made Team Fortress 2 Free-to-play, and they chose to move to a micro-transaction system... HATS!!!!! The Hat Economy of TF2 is currently estimated to be worth 50 million dollars... But that isn't all... So without any demand for money, Valve began making the 'Meet the Team videos' Then they brought in... In addition to the videos that valve made, and the hats valve created, the community began publishing videos and creating hats that they would submit to Valve! http://www.youtube.com/user/Shwiggan
http://www.youtube.com/user/maxofs2d?feature=results_main These two youtubers have about 2.5 million views between the two of them. So the next step? Availability. Pow! They did that too! And the best part of it, Valve doesn't even make the hats! We do; and when a design is accepted the creator gets a portion of the profit. This was a render I made in SFM, I independently positioned and manipulated each model, then I set up the camera, and created the image. This is a video made on
free time in SFM As well as being free advertising for Valve, the creation of videos, and usage of their media are a testament to the power of a new economic model in the industry: micro-transactions. In creating a free game with the community of TF2, people fuel the culture of their own game, Valve is more of a facilitator, and it allows an imersive experience that extends beyond the game, and as well as acting as a hook for Steam.
On a side note. It also overcomes a serious problem this era of video-gaming is facing... piracy. Altogether. I believe that Valve, and TF2, have done an incredible job at creating an unconventional relationship between the company and the individual, making an experience that is unusual but immersive, and I believe that Valve's success in this is a testament to the power multimedia can have. Look forward to part 2 where I make a movie is Source Filmmaker. Video-games Steam 'mark 1' Steam And the Steam community
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