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What is Steam?
Steam is a digital distribution platform tailored to gamers and game devlopers.
While it initially catererd to PC games, the platform soon expanded its
availability to home video games consoles ex. Xbox and Sony PlayStation.
With over 47 million daily active users, steam has been operating for almost 16
years. Its constant improvement to better accomodate users has made its
development notable in the video game industry, consistently hailing as one of
the top dogs of digital distribution platforms.
Steam is also a convenient platform for game developers, whether for huge
gaming companies or small indie creators. Any developer can partner up with
Steam to add their games to the platform, as well as easily engage and inform
the gamiing community through a store page. If game developers wish to update
or fix their game, they case use Steam to release "game patches" for players
to download. This allows game developers to improve their games without
enforcing recall of their product.

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Steam: A Video Distrubtion Platform
As an online video game distribution platofrm, Steam has become a giant in its
field of expertise. Its creation in 2005 ushered a new era in the video game
industry. While it was intially created as a way for Valve developers to update
their multiplayer games without inconveniencing its customers, the creators of
Steam quickly realized the potential it had as a game distribution platform.
Valve tested this potential with the long-awaited release of "Half-Life 2", but
the online registration issue created backlash that caused gamers to look at
Steam in a less than positive light. Valve then quickly worked to regain
customer loyalty by improving their systems and adding games created by other
developers. By 2007, Steam's standing within the gaming community had greatly
improved. NOt only did gamers have a huge selection of games to enjoy, but
Steam also made sure that its users were well-accomodated. This included the
implementation of Steam Library, Steam Community, and Steam Support.
For game developers, Steam created Steamworks, a subsidiary website where they
can partner up with the platform. Here, game developers can improve their games
with Steam's gaming tools and read up on tips in Steam Workshop. Creators can
also create store pages where they can show and release their product, as well
as interact with their audience through the page's community hub.

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Why Has Steam been so Succesful?
Firstly, Valve (competitor) had critical IP that it was able to use to attract
its initial user base. Steam was launched in 2003 to support the viral growth
on Counter-Strike, the most succesful first person shooter game of all time.
With over 5 million copies sold to date, at the time CS, was growing
exponentially, was plagued with cheating and piracy, and its player base was
fragmented across multiple versions. Leveraging its ownership of the
underlying IP, Valve was able to funnel all players through Steam platform and
solve all of these pain points.
Steam started out by offering only Valve games, Valve recognized that the
degree of fragmentation of game developers, prohibitively high costs of
physically publishing and distributing games, increasing challenge of digital
rights management and rise of digital content distribution created an
opportunity.In 2005, valve opened the Steam platform to allow non-Valve games
to be sold and played through Steam. In doing so it became a two-side
marketplace for game devs and players, and leveraged the enormous network
effects to grow its market share.
Multi-homing between games and platforms, Steam was designed to promote user
adoption and stickiness. Steam was and continues to be free to download and
much of the base game content is either free or relatively low cost. In fact,
much of the revenue is generated from in game "microtransactions".

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