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Became popular due to its first very successful release- Half- Life.

150 people are working at Valve.

The revenue of the company is more than 70 million USD (2007).

Gabe Newell was a student of Harvard University, until he was dropped out.
Later he came to Microsoft, where he worked for 13 years. In those years he had changed a lot of positions, for example he worked in Advanced Technology division, Systems, Applications. He helped to start the Microsoft multimedia division. In few words by Gabe: ‘producer on the first three releases of Windows’.

He has left Microsoft, to create his own company. That company name is Valve Software, what was established in 1996 with another ex- worker of Microsoft- Mike Harrington.
It is believed, that Gabe was inspired by Micheal Abrash, who left Microsoft for id Software, and worked on Quake.

The first game Valve released was Half- life, and became game industry phenomenon, winning over 50 game awards. By the way, Half- Life was completely self-founded, thanks to Microsoft shares Gabe and Mike were millionaires. Once Gabe mentioned, that instead of buying expensive cars and living only for themselves, they were paying to people they hired from their own pocket.

At the moment Gabe Newell is managing director in Valve Corporation, focusing more on the technology they are delivering.

Gabe has two sons and is married with Lisa. Family lives on the Long Beach Peninsula.

Mike has spent big part of this life working as a software developer. Mike was a game developer at Dynamix.

Also worked at Microsoft on Windows NT( as a development manager for the Microsoft consumer division, OS/2 graphic engine team and WinNT User Interface team), where he has met Gabe Newell.
After leaving Microsoft, co- founded Valve in 1996 with Gabe.

The first release of Valve was a game called Half- Life, a game industry phenomenon, winning a lot of awards.

On January 15, 2000, after checking the latest source code part, Mike leaves Valve, going to a long vacation with his wife, Monica.

Idea

Year 1996. Gabe Newell, who was not so famous at that time, left Microsoft, where he worked for 13 years, to found his own company. Gabe was helped by his friend co-founder, Mike Harrington, who also worked at Microsoft, and actually, where they have met. The company, was named simply- Valve.

Full with enthusiasm, those two persons did not think how popular their new company will become.
At first they acquired Quake engine from id Software. Michael Abrash, who helped in negotiation about the Quake engine, also organized meeting with John Carmack, where young game developers were informed about the game industry itself. Id Software did not believe in Valve. Once Gabe told, that it was hard to leave the place like Microsoft, where you were respected, and start making games from scratch, when almost nobody believed in you.
Team and Publisher

Now the team should be gathered. Gabe knew, that that team plays crucial role. The search was successful, and the team of consisting of parachuter, pizza delivery boy, lawyer, dental genius, vocalist…
Quite different lifestyles were united by idea and their capabilities and knowledge.

When the team was ready and game started to develop, another question appeared, publisher? Gabe had a lot of presentation, but when he started talking about the new technology they want to develop and use (for example moving mouth for speech, or skeleton animation), he was sent off. Only one published, after long presentation agreed- Sierra Studios. Sierra Studios believed in Valve, and fortunately, had lack of some nice FPS games.

First release

And already two years later after founding company, when world gaming society was expecting Quake 3, young and inexperienced company with Sierra Studios support, released its first project called Half- Life.

Half- Life was created on Doom basis. Valve wanted to have same gloomy, dark atmosphere, what was in Doom. But Valve did not make a copy (it was quite popular that time), it created totally new game universe. And it helped the project called Quiver to receive more than 50 game awards. Even one of the most famous game magazine especially for Half- Life created a new title ‘Best PC Game Ever’.

But Valve didn`t waste time for relaxation. Valve did it other way. So many award not only give society recognition, but gives big responsibility. Constantly new patches were released, SDK for the game was already released in 1999 and was up to date all the time. That was wise choice for Valve, choice what ‘makes all the difference’.

Valve always was ready for something new, it did not hesitate about hiring new talented people. In May 1998, Valve acquired TF Software PTY Ltd. This company developed the Team Fortress mod for Quake. Year later, in 1999, the Team Fortress Classic mod was released for Half- Life. I thing it is not needed to mention, how popular this game is.

Getting talented people

Valve did not stop on that, it continued to grow. Minh Le, active young man, knows as Gooseman, previously taking part in Quake mods developing, started to work on new mod for Half- Life. In time another participant joined team, called Cliffe. Two guys, full with enthusiasm, created a game, where terrorists and counter- terrorists were having endless battle. The first beta had few maps, some weapons and working economics model. The Counter- Strike was released- the most played online game in computer history, what took Half- Life another success. Valve also hired those guys.

Yet Half- Life was great successor, Valve knew they should move on. With big secrecy, company started to work on the second part of the game already 6 month later after Half- Life. Main mission for Gabe was to create a game, what will receive the ‘Best PC Game Ever’ title again.

In 2002 Valve announces its Steam, online content delivery system. At first, the idea was in keeping game constantly up to date, via immediate updates through the Internet. Later its was modified, and at the moment it is biggest online content delivery system, with not only Valve games.

August 14, 2002. Valve sued Vivendi Universal for copyright infringement. Vivendi is accused in publishing illegally distributed copies of Valve games to Internet cafes. Later some other claims were added. Vivendi accused Valve in threatening to transfer the game release date, and so on… This fight continued till 29 November 2004, when Valve Corporation was acquitted.

Electronic Entertaiment Expo

Years were passing, but there was still nothing about the new project Valve was working on. First time the new project was demonstrated on E3 (Electronic Entertainment Expo), where all the possibilities of new game engine were showed (Source). New Source engine uses module architecture, what makes it very capable for expanding and adding new features. The demonstration was really great- not any other project at that time could not offer as much as Valve did in visual part. And the physics model was unique. All objects could be moved, deformed and ‘correctly’ interact one with another. To all other developers was nothing left, except envy. Journalists were delighted, Gabe Newell did not have enough time to answer all the phone calls, mails and office guests. Everybody were waiting for Half- Life 2, and not so much time was left for ‘going gold’. The society waited for 30 September 2003, when Half- Life 2 should be released, but something went wrong…

Terrible Mistake

Half- Life 2 simply was not ready…

Later Gabe tells, that was one terrible mistake, to tell the release date. When he was asked, if he could go back in time, what he would wish to change? Gabe answered ” In retrospect I probably should have just said, ‘When it’s done.”

Bad day in Gabe’s life, arriving on Alcatraz island, where the Half- Life 2 should be, at least, demonstrated. Gabe told long PR story about ATI (rumors tell, that ATI paid around 6 million dollars Valve), showed one technology demo, and…nothing else. No Half- Life 2.

Alcatraz should be great party zone for that day, release of new generation ATI videocards, and at last, release of the most waited game, Half- Life 2. But the game was not ready, and Gabe Newell was spotted by GameSpot reporter, when he was leaving the island. Only thing that reporter heard, was “I hate release dates, no matter how hard we try we screw them up”.
30 September was over, but no Half- Life 2, no release dates…

But the real problems just started, because there was a person, who was already playing the new Valve game…

Hacker who blew the valves off

One day in life, and how everything can change, at once. Same happened at Valve office, on 4th of October, the source code for Half- Life 2 was in Internet, free to download…

That was fatal blow for Valve. All those years work was available to everybody, team was crushed, moral was ruined, nobody believed in the future of Half- Life 2, even Gabe, he just did not know what to wait. 3 days later, another powerful strike- working part of the game was released. And the society now knew the real state of the game for the 30s of September. The game was simply not ready.

Valve had nothing to comment, all what had been hidden, came to publicity. But Gabe was worrying not about the game so much, the team had terrible shock. Gabe always wanted to create ideal conditions for staff, and now all his efforts were crushed. It took some time to forget all troubles and to start working again.

The stolen source code was forgotten, until letter came to Gabe, from that hacker, who was responsible for all the mess with the stolen source code. Gabe wanted to arrest him in USA, so he invited the hacker, called Axel.G, 21 year old guy from Baden-Wuerttemberg( Germany), to USA. Gabe had offered hacker a job- special security consultant. Of course, Da Guy has accepted it. So he was arrested, but in Germany.

Half- Life 2 release

In October 2003 Valve hires Bram Cohen, creator of BitTorrent, to work on Steam.

Time was passing, and the work on Half- Life 2 was moving on. Good time for release was passed, because Far Cry and Doom 3 were already in stores, but Valve was giving its best, to finish the game and make it even better than the previous one.

On October 18, 2004, Vivendi announced ‘Half- Life 2 Gone Gold’. After all those problems, worries, delayed releases, Half- Life 2 was available for everybody on 16th of November 2004 via stores and Steam. Valve worked well- another masterpiece was created.

After 5 years of developing, Gabe decided to make games divided into small separate episodes, because another *many* years of developing, is too much, Valve had tasted all the bitter taste of it. Gabe told, it could take around 9 years to develop new game for Half- Life universe, really to long.

Games afterwards

Later Half- Life 2: Lost Coast was released, a small demonstration game, that was especially designed for future hardware, just to show the capabilities of Source engine, and how the episodic games could be delivered for end users via Steam.

I should mention, for Valve the main platform was always PC (yet there was a Half- Life for PS). Half- Life 2 appeared on Xbox, ant there is also Half- Life on arcade machines, what is quite popular in Japan. But only with Episode Two, Valve decided to cover the consoles. The Orange Box was released, including Half-Life 2: Episode Two, Portal и Team Fortress 2. This game collection appeared not only on PC, but also on PS3, Xbox 360. In this release was new achievements system integrated.

Interesting story is connected with Portal. At first, it was a game project of students, attending DigiPen Institute of Technology. The Narbacular Drop had unique portal movement system. Valve was at the exhibition, liked the idea, and hired the developers! Narbacular Drop creators were working on game, which later became Portal. So simple it is at Valve, everything for talented people.

Valve worked a lot on the Steam, and with the release of Orange Box, Steam had received own social network- Steam Community, where are more than 15 million registered users for the moment.

Now Valve is working on ‘Half- Life 2: Episode Three’ and ‘Left 4 Dead’. Of course, nobody knows the release date. Around 150 people are working at Valve days and nights. Gabe is very pleased with the team, and this is understandable. Even in bad times Gabe was thinking about the team at first, and all his efforts are rewarded with hundreds of awards…

Team Fortress Classic
May 30, 1999

Deathmatch Classic
It was released as a free download concurrently with the 1.1.0.7 patch of the game on June 11, 2000.

Counter-Strike
June 12, 1999 (Mod)
November 8, 2000 (Retail)

Opposing Force
October 31, 1999

Day of Defeat
August 4, 2000 (Mod)
May 1, 2003 (Retail)

Ricochet
November 1, 2000

Blue Shift
June 12 2001

Counter-Strike: Condition Zero
March 21, 2004

Counter-Strike: Source
Beta to members of the Valve Cyber Café Program on August 11, 2004

Half-Life 2
released on November 16, 2004

Half-Life 2: Deathmatch
Released on Steam on November 30, 2004

Half-Life: Source

Day of Defeat: Source
26 September 2005

Half- Life 2: Lost Coast
October 27 2005

Half-Life 2: Episode One
Released on June 1, 2006

Half- life2: Eposide Two
October 10, 2007 (Orange Box)

Team Fortress 2
October 10, 2007 (Orange Box)

Portal
October 10 2007 (Orange Box)

• When Bioshock was released, everybody were playing it so much in Valve, that Gabe restricted it. He said he will give everyone personally box with the game after Episode Two will be ‘Gone Gold’.
• One of Gabe’s sons reportedly enjoys Counter-Strike and is one of the main gameplay testers in Valve.
• Valve games account for over 80% of the PC online action market
• Story of Half- Life was inspired by book called ‘Mist’, Steven King.
• Gabe and Mike almost named their company ‘Hollow Box’, but ‘Valve’ was chooses in the end.
• Team Fortress 2’s commentary reveals that Gabe’s favorite class is the Spy.
• John Carmack (id Software) said in early Source engine were still old Quake engine source codes.
• Quiver- the code name for the Half- life design.
• In regards to the PlayStation 3, Newell was once quoted as claiming that developing processes for the console in general is “a waste of everybody’s time” and “a disaster on many levels … I’d say, even at this late date, they should just cancel it and do a do over. Just say, ‘This was a horrible disaster and we’re sorry and we’re going to stop selling this and stop trying to convince people to develop for it”.
• In the end period, it cost around 1 million dollars one month of developing Half- Life 2.
• The first render image from Source engine



• First screenshot of Half- Life