That’s pretty much it. In short they started as a game developer but after Half-Life 2 realized they can make a lot more money from selling other developer’s games with Steam.
Well, they released Steam as a requirement for Half-Life 2, but continued to develop games with releases going all the way into the mid 2010’s.
They had some questionable practices like mainstreaming the loot crate gambling that was formerly only in the mobile space, and “sponsoring” tournaments where they took most of the money that was “going” towards the competing teams.
Behind the scenes their dysfunctional structure (yes, their flat management structure was dysfunctional in many ways) made many projects die even deep into development. Things that come to mind: a sequel to Half-Life Opposing Force, an Adult Swim TF2 series, and Half Life Episode 3 included.
Later they expanded it to macOS, Linux and iOS/Android. Then because Gabe didn’t like Microsoft’s and Apple’s monopoly and ”closed” systems he chose Linux which was free to use and decided to push the OS with games.
Honestly, I don’t blame him.
Microsoft is an existential threat to Valves business at a conceptual level, and have a history of anticompetitive practices and aggressive behavior. Realistically all it could take is for Microsoft to make a half decent Steam clone, strong arm some exclusives, and Steam would have no counter.
Expanding into Linux is not only a good backup plan, it’s also realistically the only avenue to combat a potentially hostile Microsoft.
That’s why they released a Steam client and dev tools for Linux. Then to make more money and promote Linux further they released Steam Machine which proved to be dead on arrival for different reasons and was discontinued less than three years later. One problem was SteamOS itself.
Because it was half baked and “prebuilt” is a four-letter word in gaming circles.
Plus if you were even aware of GabeCubes, you likely had a PC already.
Steam is Valve’s cash cow. Valve had around
$13 billion in total revenue in 2022 and about $10 billion of that was from the Steam store. That’s why they haven’t made major games in the past decade besides Alyx and CS 2.
It’s not the only factor, see above.
We all know what happened to Half-life 3. To make more money they released SteamVR and later their first own VR headset Index (HTC Vive was a result of collaboration). Half-life Alyx was made to promote Index but was released a year later so that’s the only major new game.
I still think VR is in its infancy. I’m sure Valve has plans to expand upon it still.