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.

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Barack Obama throws a Reaganesque baton of hope to Hillary Clinton

The 44th President's speech backing Clinton was also his swan song. 

Barack Obama looked at ease as he stepped up to praise Hillary Clinton and endorse her as the Democratic Presidential nominee.

To an upbeat soundtrack by U2 and cheers of his 2008 campaign slogan, "yes we can", he took to the podium at the Democratic convention. 

Borrowing the sunny optimism once so skilfully deployed by Republicans, Obama struck back against Republican nominee Donald Trump's "deeply pessimistic vision" of the United States.

He declared: "The America I know is full of courage and optimism and ingenuity. The America I know is decent and generous."

Like his wife Michelle, Obama painted Clinton as a grafter who wasn't in it for the fame. 

He praised her campaign when they were rivals for the Democratic nomination in 2008, and said that when she served as a member of his team he had "a front-row seat" to her intelligence, judgement and discipline. 

He declared: "I can say with confidence there has never been a man or a woman, not me, not Bill, nobody more qualified than Hillary Clinton to serve as president of the United States of America."

He then joked to Bill Clinton, the former President, who was standing applausing: "I hope you don't mind, Bill, but I was just telling the truth, man."

The two-terms President continually urged Democratic voters, many of whom originally backed Bernie Sanders, to get out and vote. "Democracy isn't a spectator sport," he said.

But while Obama was there to add some sparkle to the Clinton campaign, it was also an opportunity to shape his legacy. 

Commentators have often compared Obama to the popular Democratic President John F Kennedy, or the less popular but idealistic Jimmy Carter. 

Obama, though, has in the past praised the Republican President Ronald Reagan for changing the trajectory of US politics. 

In his speech, he borrowed from the "eternal optimist" to compare the Democrats with the Republicans. 

He said: "Ronald Reagan called America "a shining city on a hill." Donald Trump calls it "a divided crime scene" that only he can fix.

"It doesn't matter to him that illegal immigration and the crime rate are as low as they've been in decades, because he's not actually offering any real solutions to those issues. He's just offering slogans, and he's offering fear. He's betting that if he scares enough people, he might score just enough votes to win this election."

Obama praised a diverse country, where immigrant cultures combined: "That is America. That is America. Those bonds of affection, that common creed. We don't fear the future; we shape it, embrace it, as one people, stronger together than we are on our own."

The 44th President bowed out by referring to his 2008 campaign of hope, and telling voters "America, you have vindicated that hope". And he thanked them "for this incredible journey":

"I'm ready to pass the baton and do my part as a private citizen. So this year, in this election, I'm asking you to join me, to reject cynicism and reject fear and to summon what is best in us; to elect Hillary Clinton as the next president of the United States."

There is no doubt that Obama's warm audience was ready to pick up that baton and pass it on. Whether the wider country will be warmed up enough by his Reagan rhetoric remains to be seen. 

You can read the full speech here