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The development was aided by access to the Quake engine by id Software Valve modified this engine into their GoldSrc engine. Valve's first product was Half-Life, a first-person shooter (FPS) with elements of the horror genre. Alternative names considered by Newell and Harrington include "Fruitfly Ensemble" and "Rhino Scar". in Kirkland, Washington (about five miles from the Microsoft campus in Redmond), on August 24, 1996, Newell's wedding day. Wanting to move onto a new venture using their shared wealth, Newell and Harrington founded Valve, L.L.C. Newell had spent the prior 13 years at Microsoft developing Windows, including the Windows 95 port of Doom.
Valve was founded in 1996 by former Microsoft employees Gabe Newell and Mike Harrington. Gabe Newell (foreground) and Doug Lombardi (background), 2007 By 2012, Valve employed around 250 people and was reportedly worth over US$3 billion, making it the most profitable company per employee in the United States.
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Most of Valve's revenue comes from Steam, which controlled 50 to 70% of the market for downloaded PC games in 2011 and generated an estimated $3.4 billion in 2017. They develop games through playtesting and iteration, describing game design as a kind of " experimental psychology". Valve uses a flat structure, whereby employees decide what to work on themselves.
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In 2021, Valve announced the Steam Deck portable gaming PC. They returned to the Half-Life series in 2020 with Half-Life: Alyx, their flagship VR game. They entered the hardware market in 2015 with the Steam Machine, a line of gaming computers, which sold poorly, and released the HTC Vive and Valve Index VR headsets. Valve released fewer games in 2010s, and experimented with hardware and virtual reality (VR). In 2013, Valve released the multiplayer online battle arena game Dota 2.
In 2006, Valve released Half-Life 2: Episode One, the first of two episodic sequels Episode Two followed in 2007, alongside the multiplayer game Team Fortress 2 and the puzzle game Portal. With advanced physics systems and an increased focus on story and characters, Half-Life 2 received critical acclaim and sold 12 million copies by 2011. In 2003, Valve launched Steam, followed by Half-Life 2 in 2004. Its debut product, the first-person shooter (FPS) Half-Life (1998), was a critical and commercial success with its realism, scripted sequences and seamless narrative, it had a lasting influence on the FPS genre. It is the developer of the software distribution platform Steam and the franchises Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota. Valve Corporation, also known as Valve Software, is an American video game developer, publisher, and digital distribution company headquartered in Bellevue, Washington.
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