Valve panics as Windows 8 prepares to drink Steam's milkshake

Platform owners gear up to leverage their power.

Gabe Newell, the auteur head of Valve, has threatened to move his company's digital distribution platform, Steam, to Linux in response to the locked-down nature of Windows 8. Newell called the new release "a catastrophe for everyone in the PC space", which would lead to several hardware manufacturers leaving the market.

Ars Technica's Peter Bright reports:

He attributed Valve's success to the PC's open nature, saying that the company "wouldn't exist" without either the PC or "the openness of the platform." That openness is under threat, though. Newell argues that there is a "strong temptation" to close the platform, because the platform's developers "look at what they can accomplish when they limit the competitors’ access to the platform, and they say 'That's really exciting.'"

But it's not just the "locked down" nature of the platform that scares Newell. His real concern is what Microsoft is doing with Xbox Live integration. If you download a game from the Windows 8 app store – and only from the Windows 8 app store – you get achievements, access to your friend list, and other perks that come with Microsoft's online gaming service. Steam, Valve's own app store and a tidy little earner, may find it difficult to compete. A similar squeeze is happening on the Mac, where Apple's App Store has, from yesterday, integration with their Game Centre service.

The threat to move to Linux also has a side-benefit for Valve. Their Linux client, like much on the platform, is community-developed. Dangling the carrot of more games being made available is likely to motivate that community to put extra effort into the project, and that effort will both improve the Linux client and, far more importantly, improve the Mac OS X client, which runs on the same architecture.

The problem facing Valve is similar to that facing Netflix: they are a middleman in a world which is fast doing away with them. Matt Yglesias details the problems faced by the movie streaming service:

My wife are streaming-only Netflix customers and we love it and use it all the time. But the reason we use it is that it has a lot of content that we like. But it's really not clear why this should be the case. Apple makes the box we use to facilitate streaming video, Comcast owns the pipes along which the video streams, and various production companies own the copyrights to the content we stream. Netflix has basically no leverage point in this battle. Right now it has the rights to a fair amount of content that I want to watch, but I see no reason for confidence that they'll be able to continue securing those rights in the long term.

Valve isn't in quite such a pickle. They are still an extremely popular developer, and while Steam is required for Team Fortress 2 and CounterStrike: Source, it will remain installed on a large number of gaming PCs. But the idea that, in the long term, it will carry on selling games from competing publishers seems unlikely. The two end games seem to be publisher-level fragmentation, or platform-level monopolisation.

The front page of Steam.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty
Show Hide image

Why the Liberal Democrats by-election surge is not all it seems

The Lib Dems chalked up impressive results in Stoke and Copeland. But just how much of a fight back is it?

By the now conventional post-Brexit logic, Stoke and Copeland ought to have been uniquely inhospitable for the Lib Dems. 

The party lost its deposit in both seats in 2015, and has no representation on either council. So too were the referendum odds stacked against it: in Stoke, the so-called Brexit capital of Britain, 70 per cent of voters backed Leave last June, as did 62 per cent in Copeland. And, as Stephen has written before, the Lib Dems’ mini-revival has so far been most pronounced in affluent, Conservative-leaning areas which swung for remain. 

So what explains the modest – but impressive – surges in their vote share in yesterday’s contests? In Stoke, where they finished fifth in 2015, the party won 9.8 per cent of the vote, up 5.7 percentage points. They also more than doubled their vote share in Copeland, where they beat Ukip for third with 7.3 per cent share of the vote.

The Brexit explanation is a tempting and not entirely invalid one. Each seat’s not insignificant pro-EU minority was more or less ignored by most of the national media, for whom the existence of remainers in what we’re now obliged to call “left-behind Britain” is often a nuance too far. With the Prime Minister Theresa May pushing for a hard Brexit and Labour leader Jeremy Corbyn waving it through, Lib Dem leader Tim Farron has made the pro-EU narrative his own. As was the case for Charles Kennedy in the Iraq War years, this confers upon the Lib Dems a status and platform they were denied as the junior partners in coalition. 

While their stance on Europe is slowly but surely helping the Lib Dems rebuild their pre-2015 demographic core - students, graduates and middle-class professionals employed in the public sector – last night’s results, particularly in Stoke, also give them reason for mild disappointment. 

In Stoke, campaign staffers privately predicted they might manage to beat Ukip for second or third place. The party ran a full campaign for the first time in several years, and canvassing returns suggested significant numbers of Labour voters, mainly public sector workers disenchanted with Corbyn’s stance on Europe, were set to vote Lib Dem. Nor were they intimidated by the Brexit factor: recent council by-elections in Sunderland and Rotheram, which both voted decisively to leave, saw the Lib Dems win seats for the first time on massive swings. 

So it could well be argued that their candidate, local cardiologist Zulfiqar Ali, ought to have done better. Staffordshire University’s campus, which Tim Farron visited as part of a voter registration drive, falls within the seat’s boundaries. Ali, unlike his Labour competitor Gareth Snell and Ukip leader Paul Nuttall, didn’t have his campaign derailed or disrupted by negative media attention. Unlike the Tory candidate Jack Brereton, he had the benefit of being older than 25. And, like 15 per cent of the electorate, he is of Kashmiri origin.  

In public and in private, Lib Dems say the fact that Stoke was a two-horse race between Labour and Ukip ultimately worked to their disadvantage. The prospect of Nuttall as their MP may well have been enough to convince a good number of the Labour waverers mentioned earlier to back Snell. 

With his party hovering at around 10 per cent in national polls, last night’s results give Farron cause for optimism – especially after their near-wipeout in 2015. But it’s easy to forget the bigger picture in all of this. The party have chalked up a string of impressive parliamentary by-election results – second in Witney, a spectacular win in Richmond Park, third in Sleaford and Copeland, and a strong fourth in Stoke. 

However, most of these results represent a reversion to, or indeed an underperformance compared to, the party’s pre-2015 norm. With the notable exception of Richmond’s Sarah Olney, who only joined the Lib Dems after the last general election, these candidates haven’t - or the Lib Dem vote - come from nowhere. Zulfiqar Ali previously sat on the council in Stoke and had fought the seat before, and Witney’s Liz Leffman and Sleaford’s Ross Pepper are both popular local councillors. And for all the excited commentary about Richmond, it was, of course, held by the Lib Dems for 13 years before Zac Goldsmith won it for the Tories in 2010. 

The EU referendum may have given the Lib Dems a new lease of life, but, as their #LibDemFightback trope suggests, they’re best understood as a revanchist, and not insurgent, force. Much has been said about Brexit realigning our politics, but, for now at least, the party’s new normal is looking quite a lot like the old one.