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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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland