WEBVTT - The Story of Valve Part Two

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<v Speaker 1>Technology with tech Stuff from dot Com. Hey there, everybody,

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<v Speaker 1>and welcome to tech Stuff. I am your host, Jonathan Strickland,

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<v Speaker 1>here to talk about all things technological, well not all

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<v Speaker 1>things today, because we're going to continue our story from

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<v Speaker 1>the last episode, the story of Valve. Now, in that

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<v Speaker 1>last episode, we looked at how to Microsoft millionaires left

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<v Speaker 1>their stable gigs to launch a new game development company,

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<v Speaker 1>and they called it Valve Software LLC. At that time,

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<v Speaker 1>they use their own money to fund this company, and

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<v Speaker 1>they hired on talent to help them come up with

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<v Speaker 1>a new type of game, which was a story driven

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<v Speaker 1>first person shooter. It would take them two years and

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<v Speaker 1>the result of that work would be the game Half Life.

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<v Speaker 1>A couple of years later, one of those two co founders,

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<v Speaker 1>Might Harrington, would dissolve his partnership, with the other co founder,

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<v Speaker 1>Gabe Newell, taking on charge of the company as the

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<v Speaker 1>sole leader as it were, and leaving him a little

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<v Speaker 1>bit lonely. So. Valve at this point had finished Half Life,

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<v Speaker 1>which was enjoying critical acclaim as well as healthy sales.

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<v Speaker 1>Gamers were eating it up. But as I covered in

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<v Speaker 1>that previous episode, it didn't exactly go smoothly at the time.

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<v Speaker 1>The development took a long while. It did, however, help

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<v Speaker 1>establish Valves methodology for developing games. That is that within

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<v Speaker 1>the company, employees would form cabals. Now that all sounds

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<v Speaker 1>rather sinister, doesn't it, But the cabal structure was necessity

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<v Speaker 1>while working on Half Life, which I should remind you

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<v Speaker 1>was a project that Valve hit the reset button on

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<v Speaker 1>when the original work was nearing completion. They were getting

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<v Speaker 1>close to their original ship date and made the determination

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<v Speaker 1>that the game just wasn't working. It wasn't fun. They

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<v Speaker 1>developed lot of cool technology, but they had not yet

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<v Speaker 1>figured out how to use it properly to make a

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<v Speaker 1>really compelling game. So they wanted to actually take all

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<v Speaker 1>that stuff they learned and turn it into a much

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<v Speaker 1>better product. First, they thought, well, what we should do

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<v Speaker 1>is get a game designer, someone who's brilliant in this field,

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<v Speaker 1>like a leader, who can sweep in and rescue the project.

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<v Speaker 1>The way Ken Birdwell put it in a blog post

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<v Speaker 1>was that the company was looking for a person who

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<v Speaker 1>would swing in on a on a chord, you know,

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<v Speaker 1>sword in hand, hair swept with a wind. He or

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<v Speaker 1>she would pick up all the disparate pieces and development

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<v Speaker 1>and magically assemble them into the most awesome game ever.

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<v Speaker 1>But it became clear that this was a pipe dream.

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<v Speaker 1>There was no hero coming to the rescue. They just

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<v Speaker 1>they couldn't find the right person who could actually make

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<v Speaker 1>this happen. So instead, Valve employees within the company already

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<v Speaker 1>began to form groups within that organization. They decided, well,

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<v Speaker 1>we don't really have one person who can lead this

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<v Speaker 1>project and turn it into something that is really compelling,

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<v Speaker 1>but we've got a lot of talent here. Maybe we

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<v Speaker 1>get a group of us, a multidisciplinary group, so people

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<v Speaker 1>who are specialists in different fields to work together in

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<v Speaker 1>a collaborative process. We can achieve what one magical superhero

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<v Speaker 1>would be able to do. And the members of that

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<v Speaker 1>group had a really wide range of skills that complemented

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<v Speaker 1>one another. They would have meetings that contained a lot

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<v Speaker 1>of brainstorming, and in those meetings the group would do

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<v Speaker 1>a ton of work. In fact, let me quote Mr

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<v Speaker 1>Birdwell to give you a clue about how cabals would

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<v Speaker 1>actually get stuff done. Quote. The goal of this group

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<v Speaker 1>was to create a complete document that detailed all the

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<v Speaker 1>levels and described major monster interactions, special effects, plot devices,

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<v Speaker 1>and design standards of Cabal was to work out when

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<v Speaker 1>and how every monster, weapon and n PC was to

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<v Speaker 1>be introduced, what skills we expected the player to have,

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<v Speaker 1>and how we were going to teach them those skills

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<v Speaker 1>end quote. That's that's a huge burden. You know, you're

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<v Speaker 1>talking about every element of game design, from the mechanics

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<v Speaker 1>as in the mechanics within the game itself, not to

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<v Speaker 1>mention just how do those translate to what the player

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<v Speaker 1>needs to do in order to pull it off? Like

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<v Speaker 1>what button do you have to push in order to strafe?

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<v Speaker 1>What button do you push to interact with your environment?

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<v Speaker 1>And then all the elements that happen inside the game,

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<v Speaker 1>all the stuff you encounter, all the things that make

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<v Speaker 1>the game what it is. According to Birdwell, this process

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<v Speaker 1>was intense and exhausting, and it would also include a

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<v Speaker 1>second stage. Essentially, once the team had enough raw material

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<v Speaker 1>material to work with, you know, they had brainstorm, they decide, okay,

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<v Speaker 1>we're gonna have a level. We know that the level

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<v Speaker 1>is going to culminate with an encounter enter with this

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<v Speaker 1>particular type of enemy uh that has these weaknesses and

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<v Speaker 1>nise strengths. But leading up to that, we want them

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<v Speaker 1>to have these four or five other experiences. Plus we

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<v Speaker 1>have to make sure that the player has the opportunity

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<v Speaker 1>to learn the strategy that will ultimately benefit them in

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<v Speaker 1>the battle with this big boss at the end of

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<v Speaker 1>the level. They come up with these various ideas, they

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<v Speaker 1>would start hashing them out and they would get really detailed.

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<v Speaker 1>It wouldn't just be these general rules. It might be

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<v Speaker 1>much more specific, and they would start to take all

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<v Speaker 1>of these different disparate pieces and shape it into a narrative.

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<v Speaker 1>They decided that the stuff that happened within the game

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<v Speaker 1>should be location based rather than time based. So in

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<v Speaker 1>other words, you wouldn't need to worry about missing out

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<v Speaker 1>on a really cool story development because you were lollygagging

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<v Speaker 1>two rooms back for too long. So you were, you know,

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<v Speaker 1>checking out this one corner because you were convinced that

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<v Speaker 1>that corner was going to lead you to a super

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<v Speaker 1>secret special area. And it turns out no, it's just

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<v Speaker 1>a corner. So you go on with your merry little life.

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<v Speaker 1>But you missed all the great stuff because you were

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<v Speaker 1>too busy with the corner, and the great stuff was

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<v Speaker 1>on a timer. They did not want that to happen,

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<v Speaker 1>so instead they decided that once you reach the appropriate

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<v Speaker 1>location within any given level. Your arrival is what would

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<v Speaker 1>trigger whatever the event was supposed to be, and those

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<v Speaker 1>events could be plot developments. It could be an encounter

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<v Speaker 1>with a monster. It could be the discovery of a

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<v Speaker 1>new weapon. It could be uh the interaction with another character.

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<v Speaker 1>It could be a specific special effect, whatever that might be. Now,

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<v Speaker 1>occasionally the group would come up with ideas for really

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<v Speaker 1>cool stuff that didn't necessarily fit in with anything else.

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<v Speaker 1>It was kind of just a neat idea all on

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<v Speaker 1>its own, and sometimes they would use those as transitions

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<v Speaker 1>between areas. They'd say, well, it doesn't really fit in

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<v Speaker 1>this level design, and it doesn't really fit in this

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<v Speaker 1>next level design, but we could have it as something

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<v Speaker 1>in between those two. Or some times they would just

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<v Speaker 1>have to toss it out if they couldn't find a

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<v Speaker 1>way for it to work within the confines of their story.

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<v Speaker 1>They also found it helpful to occasionally just put a

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<v Speaker 1>whole bunch of unrelated ideas into the same area and

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<v Speaker 1>then try to figure out how they would make them

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<v Speaker 1>all fit logically. So you might have a couple of

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<v Speaker 1>monster designs and a new weapon, and maybe a character interaction,

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<v Speaker 1>and all of these ideas you've had separately, and you thought, well,

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<v Speaker 1>why don't we just throw them into this one level,

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<v Speaker 1>see if we can make it make sense from a

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<v Speaker 1>story aspect, and then that can help lead to some

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<v Speaker 1>more creativity. Uh. Sometimes that didn't work. Sometimes they would

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<v Speaker 1>end up incorporating a lot of ideas, but ultimately they

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<v Speaker 1>would discover when they were done that whatever it was

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<v Speaker 1>that launched them down that path was no longer part

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<v Speaker 1>of the level. So let's say that you have this

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<v Speaker 1>one monster design you really like, and you have decided

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<v Speaker 1>that you're going to try and create a level around it.

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<v Speaker 1>It might turn out that months later you've got a

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<v Speaker 1>great level, but that monsters nowhere to be found. You

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<v Speaker 1>don't even use it, they said. Ultimately they realized, you know,

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<v Speaker 1>it didn't matter what the the genesis of the idea

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<v Speaker 1>was so much that the finished idea worked for the game.

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<v Speaker 1>And once they took that philosophy, they realized that the

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<v Speaker 1>development process, while very exhausting, worked much much better now.

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<v Speaker 1>At that time, Birdwell says, cabal sessions would include five

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<v Speaker 1>or six employees, and not everyone would always have something

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<v Speaker 1>to contribute every single day. So if you didn't have

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<v Speaker 1>five or six, you could end up with a meeting

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<v Speaker 1>where no one's really talking, nothing's really getting done. So

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<v Speaker 1>they needed five or six just to kind of cover

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<v Speaker 1>all the bases. Make sure that even if you're strapped

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<v Speaker 1>for ideas that week, other people in the group have

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<v Speaker 1>stuff to contribute, and it may be that three weeks

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<v Speaker 1>later you're the person who's taking the lead because something

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<v Speaker 1>someone else has done has sparked an idea in your

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<v Speaker 1>head and you're able to run with it. And that's

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<v Speaker 1>exactly what they wanted. So the cabal group for Half

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<v Speaker 1>Life consisted of a single writer, a level designer, and animator,

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<v Speaker 1>and then three engineers. Everyone who was in that cabal

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<v Speaker 1>had previously worked on a product somewhere that actually shipped,

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<v Speaker 1>which was a pre requirement of that first cabal. They

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<v Speaker 1>wanted the group to only include people who had worked

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<v Speaker 1>on products that actually saw the light of day. Now,

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<v Speaker 1>that didn't mean that they had done that in game

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<v Speaker 1>development necessarily. They might have developed software they got published

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<v Speaker 1>somewhere else that wasn't even a game, but at least

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<v Speaker 1>they had worked on something that published. The group would

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<v Speaker 1>meet four days a week, and the meetings would last

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<v Speaker 1>six hours a day, and this went on for five

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<v Speaker 1>months when they first started the cabal system. After that,

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<v Speaker 1>they would occasionally meet as the game continued to develop

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<v Speaker 1>until it was finally shipped, but they weren't meeting every

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<v Speaker 1>single day or even four days a week. Once they

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<v Speaker 1>got through that initial brainstorming process, and according to Birdwell,

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<v Speaker 1>the experience was so draining that you couldn't expect the

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<v Speaker 1>people who were in the cabal to do any other

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<v Speaker 1>work because it was just so consuming. The most you

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<v Speaker 1>might manage is some light housekeeping stuff like answering emails.

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<v Speaker 1>That's about as strenuous as you could get once you

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<v Speaker 1>went through this system. Now, at the end of this process,

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<v Speaker 1>the cabal produced a two hundred page document about Half Life.

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<v Speaker 1>This became the guiding design behind the game. More importantly,

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<v Speaker 1>this style of collaboration became synonymous with valves operating procedure.

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<v Speaker 1>Cabals became the model for game development and really all

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<v Speaker 1>projects with involved, not just game development, software development tools, patches,

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<v Speaker 1>all sorts of stuff. All of it is centered around

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<v Speaker 1>this concept of cabals. And it all started with Half Life.

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<v Speaker 1>Once there was enough of Half Life to actually test

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<v Speaker 1>Sierra because remember Sierra was the publisher for Half Life

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<v Speaker 1>pulled in play testers to try stuff out. During those

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<v Speaker 1>sessions that people responsible for that level would observe the

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<v Speaker 1>players and they would take notes. So that had to

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<v Speaker 1>be a harrowing experience to have designed something and now

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<v Speaker 1>you're watching a stranger play through it for the first time,

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<v Speaker 1>and you're thinking, oh, they're gonna love that thing that's

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<v Speaker 1>around the corner, and then it turns out they never

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<v Speaker 1>even went around the corner. That's gotta be a sobering experience.

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<v Speaker 1>It's also how they found out if a puzzle they

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<v Speaker 1>designed was too easy and people just breathe through it,

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<v Speaker 1>or maybe they found out it was impossible that without

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<v Speaker 1>the fore knowledge that there was a puzzle and how

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<v Speaker 1>the puzzle worked, there's no real way to work it out.

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<v Speaker 1>And it also just showed them if there were any

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<v Speaker 1>elements that just weren't fun to play, and that would

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<v Speaker 1>allow them to go back and refine their design for

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<v Speaker 1>the next build of the game. Now, after Half Life

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<v Speaker 1>was done, the cabal process continued, but it did change

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<v Speaker 1>a bit. Birdwell says that for Team Fortress too, For example,

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<v Speaker 1>cabals tended to include between eight and twelve people, and

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<v Speaker 1>the meetings weren't nearly as long they were a couple

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<v Speaker 1>of hours, not six hours a day. But the collaborative

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<v Speaker 1>process became an important element for Valve, so much so that,

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<v Speaker 1>according to the two thousand twelve employee Handbook, which by

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<v Speaker 1>the way, you can actually find online and it is

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<v Speaker 1>a pretty entertaining read, at that point, all desks at

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<v Speaker 1>Valve were mounted on wheels that allowed him to move

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<v Speaker 1>around the office. Even when the office got large enough

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<v Speaker 1>to encompass multiple floors, there were freight elevators where you

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<v Speaker 1>could wheel your desk and take it to a different floor.

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<v Speaker 1>This would make it easier to form teams within Valve

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<v Speaker 1>and work close by, you know, shoulder to shoulder with

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<v Speaker 1>your teammates for as long as whatever the team project

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<v Speaker 1>was took, and then once it was over, you could

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<v Speaker 1>actually wheel your desk somewhere else and join a different

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<v Speaker 1>team or form a team yourself. In fact, rather than

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<v Speaker 1>just jumped down the chronology, it might be a good

0:13:14.040 --> 0:13:17.760
<v Speaker 1>time to talk about the actual corporate culture of Valve,

0:13:17.840 --> 0:13:20.760
<v Speaker 1>at least circa two thousand twelve, because that was the

0:13:20.840 --> 0:13:24.040
<v Speaker 1>latest employee handbook I have at my disposal. It may

0:13:24.080 --> 0:13:26.520
<v Speaker 1>be that things have changed since then, but the two

0:13:26.520 --> 0:13:29.080
<v Speaker 1>thousand twelve valve. I imagine it was not too different

0:13:29.120 --> 0:13:31.560
<v Speaker 1>from what today's valve is, But this gives you a

0:13:31.600 --> 0:13:37.040
<v Speaker 1>way of imagining how things work inside the company itself.

0:13:37.440 --> 0:13:41.360
<v Speaker 1>The two thousand twelve handbook refers to valves organizational structure

0:13:41.480 --> 0:13:46.320
<v Speaker 1>as flat land, so they don't have a strict hierarchy

0:13:46.360 --> 0:13:50.280
<v Speaker 1>of positions in which directors report to a president and

0:13:50.320 --> 0:13:53.480
<v Speaker 1>then manager's report to the directors and employees report to

0:13:53.559 --> 0:13:57.959
<v Speaker 1>managers or they're overseen by managers. Instead, it's at least,

0:13:57.960 --> 0:14:01.520
<v Speaker 1>in theory, a flat line across the company, with all

0:14:01.600 --> 0:14:05.800
<v Speaker 1>employees being equal. The handbook does say that Gabe Newell

0:14:06.000 --> 0:14:09.200
<v Speaker 1>is the founder slash president, but he it also says

0:14:09.200 --> 0:14:12.120
<v Speaker 1>that he is not quote your manager in the quote,

0:14:12.559 --> 0:14:14.839
<v Speaker 1>so every employee in theory at least has the power

0:14:14.880 --> 0:14:19.920
<v Speaker 1>to green light and ship products. Uh. Of course, the

0:14:20.280 --> 0:14:23.240
<v Speaker 1>manual also says that out of all the people who

0:14:23.280 --> 0:14:27.400
<v Speaker 1>are not your manager, Gabe Newell is the most not

0:14:28.000 --> 0:14:32.840
<v Speaker 1>your manager, and it almost sounds like a double speak

0:14:32.960 --> 0:14:35.840
<v Speaker 1>sort of thing, like he's not your manager, but he

0:14:35.920 --> 0:14:39.360
<v Speaker 1>runs the company. M of course, that could just be

0:14:39.400 --> 0:14:44.320
<v Speaker 1>my interpretation of the manual. So how does this corporate

0:14:44.320 --> 0:14:47.000
<v Speaker 1>culture work in practice. Well. I have not been to

0:14:47.080 --> 0:14:51.320
<v Speaker 1>Valve personally, and they are traditionally a pretty secretive company.

0:14:51.640 --> 0:14:55.720
<v Speaker 1>They've had a couple of different UH folks visit and

0:14:55.880 --> 0:14:59.600
<v Speaker 1>document their visits to the office, but it tends to

0:14:59.600 --> 0:15:03.760
<v Speaker 1>be really controlled and usually there are multiple floors that

0:15:03.800 --> 0:15:07.080
<v Speaker 1>people have no access to because there are top secret

0:15:07.120 --> 0:15:11.440
<v Speaker 1>projects going on in those floors. But it sounds to

0:15:11.480 --> 0:15:15.440
<v Speaker 1>me like the corporate culture Valve would be a rewarding

0:15:15.480 --> 0:15:19.720
<v Speaker 1>but extremely challenging environment for a lot of people because

0:15:19.760 --> 0:15:22.320
<v Speaker 1>instead of taking direction, instead of having a boss who says,

0:15:23.160 --> 0:15:26.640
<v Speaker 1>this is what your job is, these are your responsibilities.

0:15:26.840 --> 0:15:29.600
<v Speaker 1>Here is how we expect you to perform your duties,

0:15:29.960 --> 0:15:34.080
<v Speaker 1>and we will evaluate you based on that criteria. Employees

0:15:34.120 --> 0:15:37.400
<v Speaker 1>at Valve are expected to seek out projects that appeal

0:15:37.480 --> 0:15:40.800
<v Speaker 1>to them and then essentially glam onto them and contribute.

0:15:40.840 --> 0:15:43.520
<v Speaker 1>So you would look around at your fellow employees and say, hey,

0:15:43.560 --> 0:15:45.800
<v Speaker 1>what are you working on? Oh that sounds cool, I

0:15:45.800 --> 0:15:47.920
<v Speaker 1>would like to work on that too. I'm part of

0:15:47.920 --> 0:15:51.280
<v Speaker 1>your team now, Or you could say what are you

0:15:51.320 --> 0:15:53.040
<v Speaker 1>working on? What are you working on? You know what?

0:15:53.160 --> 0:15:55.000
<v Speaker 1>It sounds to me like no one is working on

0:15:55.680 --> 0:15:58.640
<v Speaker 1>this amazing idea I have so I am going to

0:15:58.760 --> 0:16:01.200
<v Speaker 1>launch this as a project, and I'm going to start

0:16:01.240 --> 0:16:04.680
<v Speaker 1>recruiting people to work on my own team so that

0:16:04.720 --> 0:16:07.720
<v Speaker 1>we can get this done. Uh, these projects can be

0:16:08.400 --> 0:16:11.120
<v Speaker 1>just about anything. There seems to be a huge number

0:16:11.160 --> 0:16:14.000
<v Speaker 1>of options to choose from, and for some people that

0:16:14.120 --> 0:16:16.840
<v Speaker 1>could be a little bit intimidating. I know for me

0:16:16.920 --> 0:16:19.200
<v Speaker 1>it would be extremely intimidating. I mean, if you just

0:16:19.240 --> 0:16:22.600
<v Speaker 1>take me to the cheesecake factory and watches I panic

0:16:22.920 --> 0:16:26.200
<v Speaker 1>while flipping through that fifty page menu, you'd understand, like

0:16:26.680 --> 0:16:33.800
<v Speaker 1>sometimes having unlimited options is more restrictive than it is freeing.

0:16:34.720 --> 0:16:38.200
<v Speaker 1>There's actually a whole paradox about that. But if you

0:16:38.320 --> 0:16:41.200
<v Speaker 1>have the aptitude, if you're the person who can thrive

0:16:41.200 --> 0:16:44.960
<v Speaker 1>in that environment, you can, in theory anyway, work on

0:16:45.040 --> 0:16:48.920
<v Speaker 1>any project inside Valve. The philosophy of the company is

0:16:48.920 --> 0:16:51.400
<v Speaker 1>that if you're good enough to be hired, you're already

0:16:51.400 --> 0:16:54.320
<v Speaker 1>on the right path. And in fact, they are very

0:16:54.360 --> 0:16:57.000
<v Speaker 1>careful in the hiring process. They don't want to hire

0:16:57.040 --> 0:17:01.520
<v Speaker 1>someone who is either just a generalist who is pretty

0:17:01.560 --> 0:17:04.159
<v Speaker 1>good at lots of stuff but doesn't have a deep

0:17:04.160 --> 0:17:06.879
<v Speaker 1>expertise in anything, Nor do they want to get someone

0:17:06.880 --> 0:17:10.480
<v Speaker 1>who has an exclusive expertise in one subject and no

0:17:11.680 --> 0:17:14.720
<v Speaker 1>interest or affinity for any other subject. They want to

0:17:14.720 --> 0:17:18.159
<v Speaker 1>find people who have a broad range of skills and

0:17:18.240 --> 0:17:22.520
<v Speaker 1>a narrow range of deep expertise. That's the sweet spot

0:17:22.600 --> 0:17:26.760
<v Speaker 1>for Valve employees. And honestly, they say that they want

0:17:27.280 --> 0:17:30.520
<v Speaker 1>people who can make senior level decisions because in a

0:17:30.600 --> 0:17:34.240
<v Speaker 1>flat hierarchy, where you don't have a boss to report to,

0:17:34.960 --> 0:17:37.920
<v Speaker 1>you are the one making these senior decisions. You might

0:17:38.080 --> 0:17:40.560
<v Speaker 1>end up contributing to one project, but you could end

0:17:40.640 --> 0:17:45.600
<v Speaker 1>up effectively leading another one. Now, within work groups, some

0:17:45.720 --> 0:17:50.040
<v Speaker 1>hierarchies can and do emerge, but they are informal. They're

0:17:50.080 --> 0:17:55.639
<v Speaker 1>not codified in the organizational chart of Valve. Typically, someone

0:17:55.680 --> 0:17:57.840
<v Speaker 1>on a project will end up being a team lead,

0:17:58.080 --> 0:18:01.240
<v Speaker 1>though that person is more often a repository of all

0:18:01.240 --> 0:18:04.199
<v Speaker 1>the information about the project instead of being like a

0:18:04.240 --> 0:18:08.160
<v Speaker 1>traditional manager. And while a group is working toward a goal,

0:18:08.359 --> 0:18:12.800
<v Speaker 1>certain roles and relationships might form because just on necessity

0:18:12.840 --> 0:18:15.959
<v Speaker 1>to make sure you get stuff done uh, and that

0:18:16.080 --> 0:18:19.520
<v Speaker 1>might look more like a traditional company's structure, at least

0:18:19.520 --> 0:18:23.159
<v Speaker 1>temporarily within the confines of that project. But all of

0:18:23.160 --> 0:18:25.520
<v Speaker 1>that will fade away once the goal is complete or

0:18:25.560 --> 0:18:29.280
<v Speaker 1>the project is concluded now. According to the handbook, the

0:18:29.359 --> 0:18:32.600
<v Speaker 1>company also wanted to avoid the problems of crunch time

0:18:33.480 --> 0:18:35.600
<v Speaker 1>because they had gone through that a couple of times

0:18:35.640 --> 0:18:38.080
<v Speaker 1>by the by the year two thousand twelve when this

0:18:38.119 --> 0:18:41.960
<v Speaker 1>handbook was written. Crunch is when you're coming up against

0:18:41.960 --> 0:18:45.399
<v Speaker 1>a deadline and you need to make the mountain of

0:18:45.520 --> 0:18:50.320
<v Speaker 1>work between you and the deadline go away. So typically

0:18:50.320 --> 0:18:53.479
<v Speaker 1>this means working very long hours with an increased amount

0:18:53.600 --> 0:18:56.280
<v Speaker 1>of stress. And if you've ever done a crash study

0:18:56.320 --> 0:18:59.240
<v Speaker 1>course before a test, you know you're just cramming before

0:18:59.240 --> 0:19:01.600
<v Speaker 1>a test. You get an idea of what this is like,

0:19:01.720 --> 0:19:06.480
<v Speaker 1>only crunch is way way worse. Valves Handbook says that

0:19:06.520 --> 0:19:09.439
<v Speaker 1>employee work life balance is really important and that for

0:19:09.480 --> 0:19:12.960
<v Speaker 1>that reason you should only work normal office hours, and

0:19:13.000 --> 0:19:16.440
<v Speaker 1>employees also have no holiday or sick leave policies, meaning

0:19:16.520 --> 0:19:18.440
<v Speaker 1>that you can take as much time as you need

0:19:18.800 --> 0:19:21.200
<v Speaker 1>at least in theory, as long as you're getting your

0:19:21.200 --> 0:19:24.800
<v Speaker 1>work done. Whether this actually happens at the company or not,

0:19:24.880 --> 0:19:27.240
<v Speaker 1>I can't say, but I can imagine why it was

0:19:27.280 --> 0:19:30.320
<v Speaker 1>added in, because, after all, one of the co founders

0:19:30.400 --> 0:19:33.520
<v Speaker 1>a Valve left after half life shipped and part of

0:19:33.520 --> 0:19:36.000
<v Speaker 1>the reason for his leaving was because he had poured

0:19:36.200 --> 0:19:38.640
<v Speaker 1>so much of his time and energy and effort into

0:19:38.640 --> 0:19:40.760
<v Speaker 1>getting the game out the door that it had had

0:19:40.960 --> 0:19:44.040
<v Speaker 1>a real impact on his life at that point, and

0:19:44.080 --> 0:19:47.040
<v Speaker 1>no one wants to drive their talent away. So they

0:19:47.119 --> 0:19:49.639
<v Speaker 1>made a formal policy saying, you know, you should just

0:19:49.680 --> 0:19:52.639
<v Speaker 1>be working your office hours, and anything that's causing you

0:19:52.680 --> 0:19:55.480
<v Speaker 1>to work longer hours than normal, maybe we need to

0:19:55.480 --> 0:19:57.879
<v Speaker 1>take a look at it and make sure that you

0:19:57.920 --> 0:19:59.679
<v Speaker 1>know the priorities are in the right spot so that

0:19:59.720 --> 0:20:03.480
<v Speaker 1>you can actually have your personal time. Again, I don't

0:20:03.520 --> 0:20:05.760
<v Speaker 1>know if that's how it actually shakes out in the company.

0:20:05.800 --> 0:20:08.119
<v Speaker 1>It's one thing to say it in the employee handbook.

0:20:08.119 --> 0:20:10.240
<v Speaker 1>It's another thing to see it play out in the

0:20:10.320 --> 0:20:13.560
<v Speaker 1>actual day to day office life. But since I don't

0:20:13.560 --> 0:20:17.800
<v Speaker 1>know anyone at Valve, I can't really get insider information

0:20:17.840 --> 0:20:20.199
<v Speaker 1>on that. If you do work for Valve or have

0:20:20.320 --> 0:20:23.320
<v Speaker 1>worked for Valve, and you have some insight into this

0:20:23.400 --> 0:20:25.680
<v Speaker 1>and whether or not that in fact is the way

0:20:25.680 --> 0:20:28.760
<v Speaker 1>it works within the company, or maybe it's the ideal,

0:20:29.200 --> 0:20:31.000
<v Speaker 1>but that's not how things turn out, let me know,

0:20:31.200 --> 0:20:34.439
<v Speaker 1>because I can tell you as a creative person on

0:20:34.480 --> 0:20:37.159
<v Speaker 1>my end, most of the people I know at this

0:20:37.240 --> 0:20:41.240
<v Speaker 1>company are working very long weeks, and just because you're

0:20:41.880 --> 0:20:44.640
<v Speaker 1>office hours are over doesn't mean you are done working.

0:20:44.680 --> 0:20:46.720
<v Speaker 1>You might be working quite a bit more, even at

0:20:46.720 --> 0:20:51.399
<v Speaker 1>home or on vacation. As it turns out anyway, peer

0:20:51.400 --> 0:20:54.520
<v Speaker 1>review would become the basis of employee reviews at Valve,

0:20:54.680 --> 0:20:58.119
<v Speaker 1>And because there's no real hierarchy, there's no manager director

0:20:58.160 --> 0:21:01.800
<v Speaker 1>that you're reporting to, you would have to rely upon

0:21:01.880 --> 0:21:05.280
<v Speaker 1>your fellow employees to describe your work, and they would

0:21:05.280 --> 0:21:07.479
<v Speaker 1>describe it to some people who would essentially be kind

0:21:07.520 --> 0:21:11.000
<v Speaker 1>of chosen each year to be responsible for interviewing employees

0:21:11.040 --> 0:21:14.280
<v Speaker 1>to find out how everyone is doing job performance wise,

0:21:15.520 --> 0:21:19.119
<v Speaker 1>and compensation decisions would rest on peer descriptions of an

0:21:19.160 --> 0:21:23.119
<v Speaker 1>employee's technical ability, their ability to work within a group

0:21:23.240 --> 0:21:27.320
<v Speaker 1>and contribute valuable input, how much the employee actually contributed

0:21:27.320 --> 0:21:30.400
<v Speaker 1>to products and development, and the employee's general output level.

0:21:30.480 --> 0:21:33.640
<v Speaker 1>So you would end up having, like if you work

0:21:33.680 --> 0:21:38.000
<v Speaker 1>for Valve, then your coworkers that you are in close

0:21:38.040 --> 0:21:41.120
<v Speaker 1>contact with because you're all working together on a specific project,

0:21:41.440 --> 0:21:44.280
<v Speaker 1>they would get interviewed by some of these employees and

0:21:44.320 --> 0:21:47.440
<v Speaker 1>they would give answers like, hey, Jonathan over there, he's

0:21:47.480 --> 0:21:50.960
<v Speaker 1>on your team. Uh, what's he like to work with?

0:21:51.720 --> 0:21:57.320
<v Speaker 1>Did he do anything really uh? Notable in context of

0:21:57.320 --> 0:22:02.120
<v Speaker 1>this particular product, you know, were his contributions meaningful? Did

0:22:02.160 --> 0:22:04.639
<v Speaker 1>they help make the product better? Did they help it

0:22:04.680 --> 0:22:07.480
<v Speaker 1>ship on time? All those sort of questions. The answers

0:22:07.480 --> 0:22:11.600
<v Speaker 1>to that are what informs the decision to increase your

0:22:11.640 --> 0:22:15.800
<v Speaker 1>compensation or not. As it turns out, and Valve really

0:22:15.840 --> 0:22:21.440
<v Speaker 1>wants to reward people based upon their value to the company,

0:22:21.480 --> 0:22:24.480
<v Speaker 1>but not over reward people, so it's a delicate balance.

0:22:24.520 --> 0:22:29.040
<v Speaker 1>They also pride themselves on being more generous with their

0:22:29.080 --> 0:22:33.960
<v Speaker 1>compensation than some other companies like Microsoft and Google. But

0:22:34.640 --> 0:22:38.680
<v Speaker 1>this is important because there's no there's no career ladder, right,

0:22:38.760 --> 0:22:42.040
<v Speaker 1>there's no hierarchy, so you can't be promoted. In fact,

0:22:42.119 --> 0:22:46.119
<v Speaker 1>most Valve employees don't really have a position uh not

0:22:46.119 --> 0:22:49.200
<v Speaker 1>not really not not a real position or even job

0:22:49.240 --> 0:22:55.320
<v Speaker 1>description apart from help Valve do stuff. Some Valve employees

0:22:55.560 --> 0:22:59.400
<v Speaker 1>have an effective job title because if you're ever interacting

0:22:59.440 --> 0:23:02.439
<v Speaker 1>with anyone outside of Valve, typically you need to have

0:23:02.520 --> 0:23:04.560
<v Speaker 1>some sort of job title to make sense of it,

0:23:04.720 --> 0:23:07.600
<v Speaker 1>because anyone who's chatting with you needs to have a

0:23:07.680 --> 0:23:11.320
<v Speaker 1>point of reference. So people who work at Valve who

0:23:11.359 --> 0:23:15.600
<v Speaker 1>have outside facing duties, like let's say it's someone who

0:23:15.760 --> 0:23:19.080
<v Speaker 1>represents Valve at a trade show like E three, they

0:23:19.119 --> 0:23:23.280
<v Speaker 1>probably have a working job title, though within Valve they

0:23:23.280 --> 0:23:27.120
<v Speaker 1>would just be considered another Valve employee. So you can't

0:23:27.119 --> 0:23:30.200
<v Speaker 1>really get promoted, but you can increase your compensation based

0:23:30.280 --> 0:23:34.560
<v Speaker 1>upon your personal performance at work and your technical expertise

0:23:34.600 --> 0:23:39.880
<v Speaker 1>and that sort of thing. Uh. The handbook also outlines

0:23:39.960 --> 0:23:42.920
<v Speaker 1>some amenities that the office had at that time. Now,

0:23:42.960 --> 0:23:45.960
<v Speaker 1>this is a different office than where Valve is currently,

0:23:46.040 --> 0:23:50.480
<v Speaker 1>but I suspect that the amenities haven't changed, or rather,

0:23:50.880 --> 0:23:53.640
<v Speaker 1>if they have changed, they've only expanded. But the ones

0:23:53.680 --> 0:23:55.560
<v Speaker 1>that were listed in the two thousand and twelve handbook

0:23:55.600 --> 0:23:58.720
<v Speaker 1>included laundry rooms. There was a room where you could

0:23:58.720 --> 0:24:01.720
<v Speaker 1>get a massage if you need in one. There's a gym.

0:24:02.119 --> 0:24:06.359
<v Speaker 1>There were recreational games like dartboards, that kind of stuff. Uh.

0:24:06.400 --> 0:24:11.000
<v Speaker 1>The lobbies sported an enormous valve which, as I understand

0:24:11.080 --> 0:24:14.399
<v Speaker 1>it is also in the new office space. This was

0:24:14.440 --> 0:24:17.280
<v Speaker 1>a gift from Gabe Newell's brother when Half Life one ship.

0:24:17.560 --> 0:24:20.400
<v Speaker 1>They also have a gold crowbar, which was a gift

0:24:20.440 --> 0:24:24.679
<v Speaker 1>from Sierra when half Life went gold. Uh, And not

0:24:24.760 --> 0:24:26.879
<v Speaker 1>to jump too much ahead, but Valve has moved a

0:24:26.920 --> 0:24:29.879
<v Speaker 1>couple of times in its history. During the half Life days,

0:24:30.080 --> 0:24:32.520
<v Speaker 1>there were only about twenty people working for the company,

0:24:32.560 --> 0:24:35.719
<v Speaker 1>but by that number had increased to more than two

0:24:35.840 --> 0:24:40.800
<v Speaker 1>hundred employees, and in the company moved into the Lincoln

0:24:40.960 --> 0:24:44.359
<v Speaker 1>Square Expansion, which is a skyscraper next to the Bellevue

0:24:44.520 --> 0:24:48.760
<v Speaker 1>Arts Museum in Washington, Washington State. That is, so, I

0:24:48.760 --> 0:24:50.680
<v Speaker 1>guess it would be good to go back and explore

0:24:50.720 --> 0:24:53.440
<v Speaker 1>how the company ended up getting so big, which means

0:24:53.520 --> 0:24:56.000
<v Speaker 1>dialing the time machine back to two thousands. So I'm

0:24:56.000 --> 0:24:58.840
<v Speaker 1>gonna hop in the time machine and head back there.

0:24:58.880 --> 0:25:01.679
<v Speaker 1>The old way back machine has been sitting getting a

0:25:01.680 --> 0:25:04.680
<v Speaker 1>little dusty in the corner. Before I do that, let's

0:25:04.720 --> 0:25:15.240
<v Speaker 1>take a quick break to thank our sponsor, and we're back,

0:25:15.680 --> 0:25:19.119
<v Speaker 1>And by back, I mean back to the year two thousand.

0:25:20.080 --> 0:25:24.879
<v Speaker 1>The dot com bubble is poised to burst the final

0:25:24.960 --> 0:25:30.800
<v Speaker 1>original Peanuts comic strip publishes after Charles Schultz's passing, and

0:25:30.960 --> 0:25:36.119
<v Speaker 1>Sony debuts the PlayStation two in Japan. Meanwhile, over at Valve,

0:25:36.320 --> 0:25:39.760
<v Speaker 1>what's going on there? Well, I mentioned in the previous

0:25:39.800 --> 0:25:45.280
<v Speaker 1>episode that Half Life Opposing Force came out. N I

0:25:45.480 --> 0:25:49.040
<v Speaker 1>failed to mention in that episode that Valve didn't actually

0:25:49.080 --> 0:25:52.720
<v Speaker 1>develop that game or expansion pack if you prefer, because

0:25:52.760 --> 0:25:55.280
<v Speaker 1>it really was an expansion on the original Half Life

0:25:55.320 --> 0:25:59.680
<v Speaker 1>game and not a fully fledged game on its own right. Instead,

0:26:00.240 --> 0:26:03.560
<v Speaker 1>this game was developed by someone else. It was actually

0:26:03.600 --> 0:26:07.120
<v Speaker 1>developed by Gearbox Software, which would go on to make

0:26:07.160 --> 0:26:10.680
<v Speaker 1>a two thousand one expansion for Half Life called Blueshift.

0:26:11.280 --> 0:26:15.040
<v Speaker 1>Gearbox became known later on as the creators of a

0:26:15.119 --> 0:26:19.560
<v Speaker 1>series called Borderlands. So the folks at Valve we're looking

0:26:19.560 --> 0:26:23.480
<v Speaker 1>at other projects, namely half Life two and Team Fortress too,

0:26:24.359 --> 0:26:26.959
<v Speaker 1>and a couple of other projects as well. The company

0:26:27.000 --> 0:26:30.080
<v Speaker 1>was also supporting the work of the mod community, which

0:26:30.080 --> 0:26:33.639
<v Speaker 1>helped entrenched Valve in the hearts of hardcore gamers everywhere.

0:26:34.040 --> 0:26:36.960
<v Speaker 1>As I mentioned in the last episode, when the company

0:26:37.080 --> 0:26:40.000
<v Speaker 1>really liked a mod, they were likely to acquire it,

0:26:40.400 --> 0:26:42.639
<v Speaker 1>and that was the case with a little mod of

0:26:42.640 --> 0:26:48.600
<v Speaker 1>the Half Life competitive multiplayer mode called counter Strike. Now.

0:26:48.640 --> 0:26:51.679
<v Speaker 1>That mod put players into one of two teams. You

0:26:51.760 --> 0:26:55.639
<v Speaker 1>either played as a terrorist or a counter terrorist, and

0:26:55.680 --> 0:26:59.040
<v Speaker 1>each team had a certain goal depended upon whatever the

0:26:59.080 --> 0:27:03.920
<v Speaker 1>game type was is for that particular playing session, Completing

0:27:03.960 --> 0:27:07.639
<v Speaker 1>the goal would gain your team a point for that round.

0:27:08.119 --> 0:27:11.359
<v Speaker 1>After a certain number of rounds determined before you actually

0:27:11.400 --> 0:27:14.120
<v Speaker 1>start playing the game, the team which had the most

0:27:14.119 --> 0:27:17.160
<v Speaker 1>points would win. Now, that does not necessarily mean you'd

0:27:17.160 --> 0:27:19.560
<v Speaker 1>win if you've got more kills than your opponents, because

0:27:19.600 --> 0:27:24.160
<v Speaker 1>sometimes the objective wasn't too just kill as many people

0:27:24.160 --> 0:27:28.520
<v Speaker 1>as you possibly could. However, killing opposing team team members

0:27:29.640 --> 0:27:31.760
<v Speaker 1>tends to help no matter what the game type is.

0:27:32.080 --> 0:27:35.840
<v Speaker 1>The game rewards tight team play and ultimately became a

0:27:35.880 --> 0:27:39.359
<v Speaker 1>popular title in the e sports realm because while you

0:27:39.400 --> 0:27:42.720
<v Speaker 1>could excel at counter Strike if you were just an amazing,

0:27:42.880 --> 0:27:46.560
<v Speaker 1>lead skilled player, what you really needed was a team

0:27:46.680 --> 0:27:50.640
<v Speaker 1>of people who could work well together in order to

0:27:50.640 --> 0:27:53.399
<v Speaker 1>to excel at the game itself. If you are an

0:27:53.440 --> 0:27:57.160
<v Speaker 1>amazing player and all your teammates are nubes, then you're

0:27:57.200 --> 0:27:59.480
<v Speaker 1>probably not going to do so well in the grand

0:27:59.560 --> 0:28:02.119
<v Speaker 1>scheme of things, especially if you're up against a team

0:28:02.160 --> 0:28:06.159
<v Speaker 1>that has, you know, decent communication skills. You need to

0:28:06.200 --> 0:28:10.480
<v Speaker 1>have a good, solid group together, and that's what made

0:28:10.480 --> 0:28:14.480
<v Speaker 1>it a prime candidate for E sports now. Counter Strike

0:28:15.119 --> 0:28:18.080
<v Speaker 1>was the work of two members of the Half Life

0:28:18.119 --> 0:28:22.920
<v Speaker 1>modding community, and those were Meanly a k A. Gooseman

0:28:23.600 --> 0:28:27.720
<v Speaker 1>and just Cliff Lee did nearly all the development on

0:28:27.800 --> 0:28:30.800
<v Speaker 1>the mod, while Cliff helped publicize it. He had a

0:28:30.920 --> 0:28:34.040
<v Speaker 1>Half Life fan site that would publish and promote mods

0:28:34.119 --> 0:28:37.560
<v Speaker 1>and maps in the half Life community. Their work so

0:28:37.720 --> 0:28:41.200
<v Speaker 1>impressed Valve that the company extended to them the invitation

0:28:41.240 --> 0:28:45.760
<v Speaker 1>to become employees, and they both accepted that invitation. In

0:28:45.840 --> 0:28:50.280
<v Speaker 1>two thousand, Valve released counter Strike one point oh. It

0:28:50.360 --> 0:28:53.480
<v Speaker 1>became one of the most popular multiplayer games of all time,

0:28:53.600 --> 0:28:56.360
<v Speaker 1>right out there with games like Call of Duty. In fact,

0:28:56.680 --> 0:29:01.760
<v Speaker 1>even today, after nearly a decade and other versions of

0:29:01.800 --> 0:29:05.520
<v Speaker 1>counter Strike coming out, the original counter Strike is still

0:29:05.640 --> 0:29:08.920
<v Speaker 1>going and has more than fifteen thousand people playing it

0:29:09.320 --> 0:29:11.920
<v Speaker 1>as I do the research for this podcast. In fact,

0:29:11.920 --> 0:29:14.040
<v Speaker 1>the day that I did the research for this there

0:29:14.120 --> 0:29:17.080
<v Speaker 1>was a peak number of players hitting seventeen thousand, seven

0:29:17.280 --> 0:29:19.800
<v Speaker 1>sixty six, which is pretty incredible for a game that's

0:29:20.440 --> 0:29:24.720
<v Speaker 1>that old. By the way, Cliff provided the voice of

0:29:25.200 --> 0:29:27.959
<v Speaker 1>the radio commands in the game, so you would get

0:29:28.000 --> 0:29:31.480
<v Speaker 1>little commands over your radio that came from the from

0:29:31.640 --> 0:29:34.960
<v Speaker 1>Jeff Cliff himself. Well, Meanly would stay on with Valve

0:29:35.000 --> 0:29:38.200
<v Speaker 1>for a little while and would shift work to counter

0:29:38.240 --> 0:29:42.560
<v Speaker 1>Strike to the full sequel to counter Strike. Eventually, Valve

0:29:42.600 --> 0:29:45.920
<v Speaker 1>decided that they were not going to develop counter Strike too.

0:29:46.280 --> 0:29:49.320
<v Speaker 1>They made some other counter Strike spinoffs, but the sequel

0:29:49.320 --> 0:29:53.360
<v Speaker 1>itself got scrapped and Lee would leave Valve. As a result,

0:29:53.600 --> 0:29:56.280
<v Speaker 1>Cliff would actually stay on with Valve. Lee would go

0:29:56.320 --> 0:29:59.640
<v Speaker 1>on to work for other games for other developers. The

0:29:59.720 --> 0:30:03.560
<v Speaker 1>count Strike series did continue with spinoffs. Uh, there just

0:30:03.680 --> 0:30:06.320
<v Speaker 1>wasn't a counter Strike two. So in two thousand four,

0:30:06.560 --> 0:30:10.560
<v Speaker 1>counter Strike Condition zero published. This was a game that

0:30:10.600 --> 0:30:15.080
<v Speaker 1>was developed by Turtle Rock. They developed that particular version

0:30:15.200 --> 0:30:17.680
<v Speaker 1>of counter Strike and it was still using the gold

0:30:17.720 --> 0:30:20.400
<v Speaker 1>Source game engine, which was the same one that powered

0:30:20.440 --> 0:30:23.600
<v Speaker 1>Half Life and the original counter Strike Mod two. Other

0:30:23.640 --> 0:30:26.560
<v Speaker 1>games would follow. There was counter Strike Source, which used

0:30:26.560 --> 0:30:28.760
<v Speaker 1>a different game engine that we'll talk about a little

0:30:28.760 --> 0:30:31.320
<v Speaker 1>bit later in this episode. That one also published in

0:30:31.360 --> 0:30:34.640
<v Speaker 1>two thousand four, and then there was Counterstrike Global Offensive,

0:30:34.720 --> 0:30:38.280
<v Speaker 1>which would not publish until two thousand twelve. That one

0:30:38.360 --> 0:30:42.520
<v Speaker 1>was developed in partnership with Hidden Path Entertainment five years later.

0:30:42.800 --> 0:30:45.600
<v Speaker 1>That particular version of counter Strike, that is Counterstrike Global

0:30:45.600 --> 0:30:47.880
<v Speaker 1>Offensive remains one of the most popular games on the

0:30:47.920 --> 0:30:50.760
<v Speaker 1>Steam platform. In fact, when I checked it today as

0:30:50.760 --> 0:30:53.240
<v Speaker 1>I do this podcast, there were more than four hundred

0:30:53.280 --> 0:30:58.000
<v Speaker 1>seventy five thousand concurrent players. Nearly half a million concurrent

0:30:58.040 --> 0:31:03.360
<v Speaker 1>players playing a game that's five years old. That is phenomenal.

0:31:04.640 --> 0:31:08.720
<v Speaker 1>Back to two thousand, Valve released a game called Ricochet

0:31:09.000 --> 0:31:12.200
<v Speaker 1>in two thousand and It was developed by a guy

0:31:12.280 --> 0:31:16.000
<v Speaker 1>named Robin Walker who was an Australian game designer. He

0:31:16.080 --> 0:31:18.200
<v Speaker 1>was part of the team who had developed the Team

0:31:18.240 --> 0:31:22.920
<v Speaker 1>Fortress mod for Quake World, and when Valve decided that

0:31:22.960 --> 0:31:27.120
<v Speaker 1>they were going to acquire the Team Fortress assets and

0:31:27.800 --> 0:31:30.600
<v Speaker 1>end up acquiring the company essentially or the group that

0:31:30.720 --> 0:31:34.080
<v Speaker 1>developed them, uh, Robin Walker was one of those guys

0:31:34.120 --> 0:31:37.080
<v Speaker 1>and came over to Valve. So he had joined Valve

0:31:37.120 --> 0:31:41.280
<v Speaker 1>about two years earlier. Now the employee handbook describes Ricochet

0:31:41.280 --> 0:31:44.600
<v Speaker 1>as an example that quote demonstrates to the mod community

0:31:44.840 --> 0:31:47.640
<v Speaker 1>how a game can be created quickly and easily with

0:31:47.760 --> 0:31:51.440
<v Speaker 1>Valves s d K end quote. S d K stands

0:31:51.440 --> 0:31:54.760
<v Speaker 1>for Software Developer Kit, So in other words, Ricochet was

0:31:54.800 --> 0:31:57.440
<v Speaker 1>meant to say to the mod community, Hey, we want

0:31:57.480 --> 0:31:59.680
<v Speaker 1>you to make awesome games, and here are the tools

0:31:59.760 --> 0:32:02.040
<v Speaker 1>you can used to do that, So go out there

0:32:02.040 --> 0:32:07.840
<v Speaker 1>and make the next cool, super awesome game. And obviously

0:32:07.960 --> 0:32:10.880
<v Speaker 1>Valve has a vested interest in this because if people

0:32:10.920 --> 0:32:13.760
<v Speaker 1>go out and create an awesome game, and Valve sees

0:32:13.760 --> 0:32:16.320
<v Speaker 1>a way of marketing that they can acquire that game,

0:32:16.440 --> 0:32:19.080
<v Speaker 1>the game developers get rewarded for the work they've done,

0:32:19.520 --> 0:32:22.360
<v Speaker 1>and then Valve can sell that game to a wider audience.

0:32:23.000 --> 0:32:27.120
<v Speaker 1>Ricochet was developed internally. This was not a moded game

0:32:27.160 --> 0:32:30.920
<v Speaker 1>that they picked up, but Walker created Ricochet and modified

0:32:30.960 --> 0:32:33.760
<v Speaker 1>Half Life into a new type of game. It was

0:32:33.800 --> 0:32:37.760
<v Speaker 1>a competitive multiplayer game, so you know something counter Strikes

0:32:37.760 --> 0:32:40.280
<v Speaker 1>a competitive multiplayer game as well, but Ricchet is very

0:32:40.280 --> 0:32:44.880
<v Speaker 1>different from Counterstrike and Ricochet. Players would control the character

0:32:45.040 --> 0:32:47.440
<v Speaker 1>first person shooter style, but you would have all these

0:32:47.480 --> 0:32:51.200
<v Speaker 1>different disc shaped platforms in a giant arena that are

0:32:51.360 --> 0:32:54.880
<v Speaker 1>suspended over an infinite pit it appears to be so

0:32:54.920 --> 0:32:57.400
<v Speaker 1>you can jump from platform to platform as part of

0:32:57.400 --> 0:32:59.920
<v Speaker 1>this game, those part of the strategy is jumping from

0:33:00.040 --> 0:33:02.960
<v Speaker 1>one platform to the next while trying to take out

0:33:03.000 --> 0:33:05.640
<v Speaker 1>your opponents. So you had to worry about all these

0:33:05.640 --> 0:33:09.120
<v Speaker 1>sorts of different angles. You had to worry about making jumps.

0:33:09.160 --> 0:33:11.160
<v Speaker 1>If you missed a jump, then you would fall to

0:33:11.200 --> 0:33:14.320
<v Speaker 1>your death. You had to worry about where your opponents were,

0:33:14.600 --> 0:33:17.640
<v Speaker 1>and there are also little elements along the edges of

0:33:17.680 --> 0:33:19.920
<v Speaker 1>the playing field that would allow you to bounce off

0:33:19.920 --> 0:33:22.080
<v Speaker 1>of them, so if you jump toward them, it would

0:33:22.160 --> 0:33:25.720
<v Speaker 1>redirect your jump or allow you to ricochet. Thus the

0:33:25.840 --> 0:33:29.760
<v Speaker 1>name and actually reminds me a lot of the disc

0:33:29.960 --> 0:33:32.680
<v Speaker 1>game in Tron in a lot of ways, although that

0:33:32.720 --> 0:33:36.760
<v Speaker 1>may just be the graphics that are really reminiscent of that.

0:33:36.880 --> 0:33:41.240
<v Speaker 1>The gameplay itself is quite different now. Originally, Valve wanted

0:33:41.280 --> 0:33:44.600
<v Speaker 1>to release this game and then have updates come out

0:33:44.760 --> 0:33:48.160
<v Speaker 1>over time, allowing it to continually evolve. That would eventually

0:33:48.200 --> 0:33:51.840
<v Speaker 1>become the model for Team Fortress to further down the line,

0:33:52.520 --> 0:33:56.080
<v Speaker 1>but Ricochet never quite got that benefit. It just sort

0:33:56.080 --> 0:33:59.000
<v Speaker 1>of languished, and a lot of folks look at it

0:33:59.080 --> 0:34:02.280
<v Speaker 1>as a totally failed title. It became something of a

0:34:02.400 --> 0:34:06.040
<v Speaker 1>joke within the gaming community and definitely something that Robin

0:34:06.120 --> 0:34:11.520
<v Speaker 1>Walker would find painful to discuss, because clearly there was

0:34:11.880 --> 0:34:15.120
<v Speaker 1>the gem of a really cool idea here, but it

0:34:15.239 --> 0:34:19.080
<v Speaker 1>just never got the support outside of its initial development

0:34:19.520 --> 0:34:21.840
<v Speaker 1>that it really needed in order for it to become

0:34:22.520 --> 0:34:26.719
<v Speaker 1>a really compelling game. However, I would argue that if

0:34:26.760 --> 0:34:29.719
<v Speaker 1>you look at something like Ricochet, you could easily see

0:34:30.120 --> 0:34:35.200
<v Speaker 1>where the other future developers would come up with ideas

0:34:35.239 --> 0:34:39.080
<v Speaker 1>that were really compelling that put their own twist on

0:34:39.120 --> 0:34:43.160
<v Speaker 1>the first person shooter genre. I'm specifically talking about Portal,

0:34:43.440 --> 0:34:45.560
<v Speaker 1>but that's a game we'll have to cover in Part

0:34:45.880 --> 0:34:49.200
<v Speaker 1>three of this series. Also spoiler alert, there will be

0:34:49.239 --> 0:34:52.680
<v Speaker 1>a Part three of this series. And I don't mean

0:34:52.719 --> 0:34:55.279
<v Speaker 1>to suggest that Valve is so important a company that

0:34:55.400 --> 0:34:58.000
<v Speaker 1>requires three episodes, but rather that there are a lot

0:34:58.040 --> 0:35:00.760
<v Speaker 1>of lessons to be learned in the story of Valve,

0:35:01.200 --> 0:35:03.520
<v Speaker 1>that there are a ton of things that happened through

0:35:03.560 --> 0:35:07.000
<v Speaker 1>the course of valves history that are really valuable to

0:35:07.120 --> 0:35:13.600
<v Speaker 1>understand for other companies. It's not just Valve. So while

0:35:13.640 --> 0:35:16.160
<v Speaker 1>I understand that i've I've covered other companies with fewer

0:35:16.200 --> 0:35:20.680
<v Speaker 1>parts that had longer histories than Valve, I feel like

0:35:20.719 --> 0:35:24.520
<v Speaker 1>there's a lot of deep lessons to be learned in

0:35:24.560 --> 0:35:27.360
<v Speaker 1>these histories. So that's the only reason I'm really spending

0:35:27.400 --> 0:35:30.520
<v Speaker 1>that much time on this one now. In two thousand one,

0:35:31.160 --> 0:35:34.600
<v Speaker 1>Valve released a couple of half life expansions. While counter

0:35:34.640 --> 0:35:38.000
<v Speaker 1>Strike would become the most popular online action game that year,

0:35:38.400 --> 0:35:42.160
<v Speaker 1>and behind the scenes work would continue on Team Fortress Too,

0:35:42.320 --> 0:35:45.040
<v Speaker 1>as well as the sequel to Half Life, but it

0:35:45.080 --> 0:35:48.640
<v Speaker 1>became clear that, at least for Team Fortress Too, things

0:35:48.680 --> 0:35:51.400
<v Speaker 1>were going to take a lot longer than game Newell

0:35:51.440 --> 0:35:54.239
<v Speaker 1>initially expected. In fact, in many ways, it was going

0:35:54.280 --> 0:36:00.239
<v Speaker 1>to become another Half Life, in that numerous delays and

0:36:00.480 --> 0:36:03.799
<v Speaker 1>internal issues would cause the game to come out much

0:36:03.920 --> 0:36:07.360
<v Speaker 1>much later than what they had hoped. These days, gamers

0:36:07.400 --> 0:36:10.920
<v Speaker 1>call this sort of thing Valve time, So it's kind

0:36:10.920 --> 0:36:16.040
<v Speaker 1>of a dismissive term, almost a pejorative about the delay

0:36:16.200 --> 0:36:18.960
<v Speaker 1>between when you expect a game and whether or not

0:36:19.000 --> 0:36:22.840
<v Speaker 1>it ever comes out. That that time in between is

0:36:22.840 --> 0:36:25.600
<v Speaker 1>called Valve time. Like, yeah, but how long is that?

0:36:25.640 --> 0:36:27.920
<v Speaker 1>In Valve time, you might say, all right, what was

0:36:27.920 --> 0:36:30.200
<v Speaker 1>coming out next year, But in Valve time, that really

0:36:30.200 --> 0:36:35.959
<v Speaker 1>means two, three, six years from now. So uh. These

0:36:36.000 --> 0:36:38.840
<v Speaker 1>long stretches have made Valve employees a bit more hesitant

0:36:38.880 --> 0:36:41.640
<v Speaker 1>to talk about big projects because of the issues that

0:36:41.680 --> 0:36:44.000
<v Speaker 1>stirs up within the gaming community. I mean, you don't

0:36:44.000 --> 0:36:47.080
<v Speaker 1>want to announce that a game is coming out, have

0:36:47.280 --> 0:36:50.560
<v Speaker 1>that day come and go with nothing shipped, and then

0:36:50.640 --> 0:36:53.319
<v Speaker 1>have to answer to the gaming community over and over again,

0:36:53.360 --> 0:36:59.600
<v Speaker 1>because they are persistent and largely unforgiving, and it can

0:36:59.640 --> 0:37:04.120
<v Speaker 1>be very frustrating from a creative perspective to deal with

0:37:04.160 --> 0:37:08.839
<v Speaker 1>that level of animosity, or even not even if it's animosity,

0:37:09.000 --> 0:37:11.840
<v Speaker 1>let's say that there's no ill will or anything. Just

0:37:11.880 --> 0:37:14.000
<v Speaker 1>having to answer the same question over and over again

0:37:14.040 --> 0:37:17.720
<v Speaker 1>can become demoralizing. So these days Valve is less likely

0:37:17.760 --> 0:37:21.560
<v Speaker 1>to talk about the stuff that's in development. So we'll

0:37:21.640 --> 0:37:24.960
<v Speaker 1>check back with Team Fortress two in the next episode

0:37:25.120 --> 0:37:27.600
<v Speaker 1>and maybe touch on it a couple of times throughout

0:37:27.600 --> 0:37:29.680
<v Speaker 1>this one and talk about some of the stuff that

0:37:29.719 --> 0:37:32.319
<v Speaker 1>went down during its development. But the following year, two

0:37:32.320 --> 0:37:36.160
<v Speaker 1>thousand two, was when Valve relocated to a new office space.

0:37:36.360 --> 0:37:39.319
<v Speaker 1>So they had started off in Kirkland, Washington, they had

0:37:39.360 --> 0:37:43.920
<v Speaker 1>signed a five year office rental agreement, and they decided

0:37:43.920 --> 0:37:46.719
<v Speaker 1>that they would relocate to Bellevue, Washington. It was also

0:37:46.760 --> 0:37:48.920
<v Speaker 1>in two thousand two that Valve made an announcement that

0:37:48.920 --> 0:37:51.759
<v Speaker 1>would end up transforming the company on a level that

0:37:51.800 --> 0:37:56.040
<v Speaker 1>I suspect no one anticipated at that time. And this

0:37:56.200 --> 0:37:58.920
<v Speaker 1>was an announcement that happened at the Game Developer Conference

0:37:58.960 --> 0:38:03.840
<v Speaker 1>in two thousand two. That's when Valve announced Steam. Now,

0:38:04.840 --> 0:38:09.080
<v Speaker 1>the actual platform of Steam wouldn't launch until two thousand three,

0:38:09.440 --> 0:38:11.560
<v Speaker 1>but they announced it in two thousand two. So what

0:38:11.760 --> 0:38:14.480
<v Speaker 1>is Steam and why is it such a big deal? Well,

0:38:14.520 --> 0:38:17.759
<v Speaker 1>when it launched, it wasn't nearly as big a deal

0:38:17.800 --> 0:38:19.839
<v Speaker 1>as it is today, and I don't think anyone could

0:38:19.840 --> 0:38:24.000
<v Speaker 1>have anticipated it. But first, at the time, Steam was

0:38:24.000 --> 0:38:28.680
<v Speaker 1>pretty much necessary for Valve. So Valve was working on

0:38:28.960 --> 0:38:33.760
<v Speaker 1>developing or supporting tons of multiplayer games, either the games

0:38:33.760 --> 0:38:37.120
<v Speaker 1>that they had developed in house or the mods that

0:38:37.200 --> 0:38:40.560
<v Speaker 1>were based upon the game they had developed. That game

0:38:40.760 --> 0:38:43.640
<v Speaker 1>essentially being Half Life right, So Half Life and all

0:38:43.640 --> 0:38:46.759
<v Speaker 1>the different modifications that came out, all of them required

0:38:47.360 --> 0:38:51.400
<v Speaker 1>this kind of ongoing support because Valve would constantly tweak

0:38:51.960 --> 0:38:55.239
<v Speaker 1>things so that they would run a little better, more smoothly,

0:38:55.400 --> 0:38:59.240
<v Speaker 1>that they would remove exploits, that they would remove vulnerabilities.

0:39:00.000 --> 0:39:02.680
<v Speaker 1>But that meant that people had to use the latest

0:39:02.760 --> 0:39:04.800
<v Speaker 1>version of the game or to play with each other.

0:39:05.000 --> 0:39:06.960
<v Speaker 1>In other words, if you have the latest version of

0:39:07.000 --> 0:39:10.919
<v Speaker 1>counter Strike, but I've got a version that's two versions behind.

0:39:11.000 --> 0:39:12.560
<v Speaker 1>Let's say that you've got one point four and I

0:39:12.560 --> 0:39:15.080
<v Speaker 1>have one point too, we can't play together because our

0:39:15.120 --> 0:39:18.720
<v Speaker 1>games are no longer compatible. I I cannot match everything

0:39:18.760 --> 0:39:21.120
<v Speaker 1>you have. There might be new maps that you have

0:39:21.200 --> 0:39:24.439
<v Speaker 1>that I don't have, and this sort of mismatch meant

0:39:24.440 --> 0:39:27.759
<v Speaker 1>that we could not have a compatible gaming session with

0:39:27.800 --> 0:39:30.960
<v Speaker 1>one another. I would need to update my game to

0:39:31.040 --> 0:39:34.040
<v Speaker 1>be the same version as yours. Uh. And actually it

0:39:34.120 --> 0:39:36.239
<v Speaker 1>ends up being more complicated than that, because I would

0:39:36.320 --> 0:39:38.360
<v Speaker 1>need to have the right version to even log into

0:39:38.400 --> 0:39:40.520
<v Speaker 1>a server and be able to play on that server.

0:39:40.680 --> 0:39:43.600
<v Speaker 1>So what Valve wanted to do was develop a platform

0:39:43.640 --> 0:39:46.240
<v Speaker 1>that would make it easier to patch games like counter

0:39:46.280 --> 0:39:50.080
<v Speaker 1>Strike and Steam was that solution. It's an online platform,

0:39:50.120 --> 0:39:52.400
<v Speaker 1>which means you have to log into an online account.

0:39:52.480 --> 0:39:54.800
<v Speaker 1>You have to have an Internet connection for it to work.

0:39:55.160 --> 0:39:58.120
<v Speaker 1>Once you're logged in, the platform can scan the versions

0:39:58.239 --> 0:40:01.120
<v Speaker 1>the various Valve games. Later on it would be other

0:40:01.160 --> 0:40:03.120
<v Speaker 1>games as well, but in the early days it was

0:40:03.200 --> 0:40:06.440
<v Speaker 1>just Valve and really it was just Half Life and

0:40:06.520 --> 0:40:10.120
<v Speaker 1>the various mods, and then it would make sure that

0:40:10.200 --> 0:40:12.920
<v Speaker 1>the version you were using was up to date. And

0:40:12.960 --> 0:40:15.320
<v Speaker 1>if the version you're using isn't up to date, it

0:40:15.360 --> 0:40:18.680
<v Speaker 1>could automatically update those games to make sure that you're

0:40:18.680 --> 0:40:20.520
<v Speaker 1>ready to go and you could log in and have

0:40:20.640 --> 0:40:24.960
<v Speaker 1>your online gaming session. Eventually, Valve would extend this to

0:40:25.040 --> 0:40:28.560
<v Speaker 1>apply not just to online multiplayer games, but also single

0:40:28.600 --> 0:40:30.920
<v Speaker 1>player games that you can play offline. Let's say you

0:40:30.960 --> 0:40:33.799
<v Speaker 1>buy Half Life and you only want to play the

0:40:33.840 --> 0:40:37.319
<v Speaker 1>single player campaign, you have no interest in playing the

0:40:37.400 --> 0:40:42.359
<v Speaker 1>multiplayer campaign. Well, once this really got going, you had

0:40:42.400 --> 0:40:45.160
<v Speaker 1>to have a Steam connection even to play your single

0:40:45.239 --> 0:40:48.120
<v Speaker 1>player game on your computer, because even though the whole

0:40:48.120 --> 0:40:51.400
<v Speaker 1>thing is self contained, even though you are playing data

0:40:51.560 --> 0:40:54.760
<v Speaker 1>that lives on your computer, you would require that persistent

0:40:54.760 --> 0:40:57.920
<v Speaker 1>connection to the Internet in order to actually play it.

0:40:58.000 --> 0:41:01.239
<v Speaker 1>And a lot of gamers do not like this, particularly

0:41:01.400 --> 0:41:04.200
<v Speaker 1>since at the time in the early two thousand's, not

0:41:04.320 --> 0:41:07.640
<v Speaker 1>everyone had a persistent Internet connection. It wasn't really common

0:41:07.800 --> 0:41:10.520
<v Speaker 1>in the gaming world or in the households in general,

0:41:11.280 --> 0:41:14.839
<v Speaker 1>and some gamers really resented having to log onto an

0:41:14.880 --> 0:41:17.440
<v Speaker 1>online service just to play a game that, in their minds,

0:41:17.480 --> 0:41:20.239
<v Speaker 1>should exist completely on their own machines with no need

0:41:20.280 --> 0:41:23.080
<v Speaker 1>for outside access. And I can't say that I fully

0:41:23.080 --> 0:41:25.759
<v Speaker 1>blamed them. I mean, I find it very frustrating to

0:41:25.840 --> 0:41:28.879
<v Speaker 1>try and play certain games that should not have any

0:41:28.960 --> 0:41:32.000
<v Speaker 1>real Internet component and find out I can't do it

0:41:32.040 --> 0:41:38.319
<v Speaker 1>because my Internet connection is uh is down or is unreliable.

0:41:38.440 --> 0:41:42.080
<v Speaker 1>I have an Internet connection that sometimes just poops out

0:41:42.120 --> 0:41:45.160
<v Speaker 1>on me, and if I have a game installed on

0:41:45.520 --> 0:41:48.840
<v Speaker 1>a computer or a console, is really frustrating to have

0:41:48.880 --> 0:41:51.520
<v Speaker 1>that experience of launching the game and being told, oh,

0:41:51.560 --> 0:41:54.120
<v Speaker 1>by the way, you can't actually play this because I

0:41:54.160 --> 0:41:57.040
<v Speaker 1>can't connect to the servers to authenticate. In fact, that's

0:41:57.040 --> 0:42:00.760
<v Speaker 1>another point that Steam was made for. It was for authentication.

0:42:01.520 --> 0:42:04.760
<v Speaker 1>This is a way to combat piracy. So the idea

0:42:04.800 --> 0:42:06.480
<v Speaker 1>is that if you want to play a game, you

0:42:06.680 --> 0:42:09.360
<v Speaker 1>log into Steam, which would check to make sure the

0:42:09.400 --> 0:42:12.040
<v Speaker 1>game you were playing was in fact a valid copy.

0:42:12.120 --> 0:42:13.880
<v Speaker 1>It would make sure that you had the license to

0:42:13.960 --> 0:42:16.480
<v Speaker 1>play that game and you weren't just pirating a copy

0:42:16.480 --> 0:42:19.760
<v Speaker 1>of it. Now, if you're an honest customer, that doesn't

0:42:19.760 --> 0:42:22.440
<v Speaker 1>necessarily sound bad, right like, well, you know I bought

0:42:22.440 --> 0:42:24.879
<v Speaker 1>the game. It's checking to make sure I bought the game.

0:42:25.040 --> 0:42:28.719
<v Speaker 1>I get it fine, you know whatever, you might think.

0:42:28.800 --> 0:42:31.640
<v Speaker 1>The only people who really get upset at this tactic

0:42:31.800 --> 0:42:34.439
<v Speaker 1>are software pirates, the people who steal games and that

0:42:34.520 --> 0:42:36.719
<v Speaker 1>they find out that the stuff they stole they can't

0:42:36.719 --> 0:42:40.480
<v Speaker 1>actually play. But it turns out that you can be

0:42:40.560 --> 0:42:45.400
<v Speaker 1>a completely honest customer and still have really negative experiences

0:42:45.480 --> 0:42:49.360
<v Speaker 1>due to this sort of authentication or digital rights management strategy.

0:42:49.400 --> 0:42:52.759
<v Speaker 1>The implementation caused problems to people even when they had

0:42:53.040 --> 0:42:57.719
<v Speaker 1>legitimately purchased their copy of a game. So here's one

0:42:57.760 --> 0:43:02.800
<v Speaker 1>way Valve games are popular. They are really popular games.

0:43:02.840 --> 0:43:04.520
<v Speaker 1>They a lot of people end up buying them on

0:43:04.600 --> 0:43:06.640
<v Speaker 1>day one, and then they launched their games, they want

0:43:06.640 --> 0:43:09.080
<v Speaker 1>to play them right away. Well, if you have an

0:43:09.160 --> 0:43:13.240
<v Speaker 1>authentication strategy that requires your games to dial into a server,

0:43:13.760 --> 0:43:17.840
<v Speaker 1>and on day one of your game, everybody is trying

0:43:17.840 --> 0:43:20.960
<v Speaker 1>to play it, your servers could get overwhelmed with all

0:43:21.000 --> 0:43:24.080
<v Speaker 1>these requests. Tons of people are logging in they just

0:43:24.120 --> 0:43:26.040
<v Speaker 1>want to play their games, and these may be single

0:43:26.080 --> 0:43:30.399
<v Speaker 1>player games that have no multiplayer component. Because the server

0:43:30.640 --> 0:43:34.640
<v Speaker 1>that authenticates the play sessions would be overloaded. This could

0:43:34.640 --> 0:43:36.640
<v Speaker 1>cause delays, and then you have a growing number of

0:43:36.640 --> 0:43:39.799
<v Speaker 1>gamers who are frustrated that the single player game that

0:43:39.840 --> 0:43:42.759
<v Speaker 1>they own on their machine cannot launch because of a

0:43:42.800 --> 0:43:45.440
<v Speaker 1>problem on some other computer out there on the internet.

0:43:45.480 --> 0:43:49.040
<v Speaker 1>They have no control over that, and that gives credence

0:43:49.080 --> 0:43:53.840
<v Speaker 1>to the argument that authentication strategies frequently punished legitimate users

0:43:53.880 --> 0:43:58.200
<v Speaker 1>more than they prevent piracy, because pirates, they'll go to

0:43:58.200 --> 0:44:01.160
<v Speaker 1>an extra step. They'll often work to strip out those

0:44:01.200 --> 0:44:05.480
<v Speaker 1>protections in games entirely so they aren't hampered by these

0:44:05.520 --> 0:44:08.360
<v Speaker 1>same issues because they've gone into the code and removed

0:44:08.520 --> 0:44:11.520
<v Speaker 1>those protections. So they turns out the only people who

0:44:11.560 --> 0:44:15.719
<v Speaker 1>are getting affected by this anti piracy policy are the

0:44:15.800 --> 0:44:18.759
<v Speaker 1>legitimate customers because the pirates have already taken it out.

0:44:19.200 --> 0:44:21.720
<v Speaker 1>So this is a common problem in digital rights management

0:44:21.760 --> 0:44:26.080
<v Speaker 1>solutions in general, not just this particular one, but different

0:44:26.160 --> 0:44:29.840
<v Speaker 1>DRM approaches. So it's a big challenge to create DRM

0:44:30.000 --> 0:44:32.880
<v Speaker 1>that does its job while also not creating a negative

0:44:32.920 --> 0:44:36.759
<v Speaker 1>impact for actual customers. But that's another topic. I could

0:44:36.760 --> 0:44:39.000
<v Speaker 1>do a full episode, and in fact I have done

0:44:39.000 --> 0:44:43.680
<v Speaker 1>full episodes about digital rights management and why it's both

0:44:44.239 --> 0:44:50.160
<v Speaker 1>important and problematic. It's important because people steal stuff and

0:44:50.239 --> 0:44:55.200
<v Speaker 1>it's really easy to distribute digital content without any checks

0:44:55.239 --> 0:44:58.919
<v Speaker 1>or balances, and that has a real impact on finances

0:44:59.000 --> 0:45:02.040
<v Speaker 1>down the line. Um, it's a real problem because more

0:45:02.080 --> 0:45:04.359
<v Speaker 1>often than not it ends up punishing your customers and

0:45:04.360 --> 0:45:10.120
<v Speaker 1>does nothing to dissuade pirates. So yeah, big issue. The

0:45:10.120 --> 0:45:12.920
<v Speaker 1>thing to remember right now is that when Steam launched.

0:45:13.280 --> 0:45:15.799
<v Speaker 1>It was really done so as a means to distribute

0:45:15.800 --> 0:45:20.960
<v Speaker 1>patches and also to sell digital copies of Valve games.

0:45:21.480 --> 0:45:24.920
<v Speaker 1>Later on, Steam would become much more than that and

0:45:24.960 --> 0:45:28.320
<v Speaker 1>has played a large role in the gradual shift away

0:45:28.440 --> 0:45:32.759
<v Speaker 1>from physical media to more digital distribution. Valve saw the

0:45:32.800 --> 0:45:34.800
<v Speaker 1>writing on the wall way back in two thousand two

0:45:34.880 --> 0:45:38.200
<v Speaker 1>and got ahead of the curve big time. But we'll

0:45:38.200 --> 0:45:41.440
<v Speaker 1>talk more about that in part three. Now. Steam launched

0:45:41.480 --> 0:45:45.160
<v Speaker 1>on September twelve, two thousand three, and in another year

0:45:45.280 --> 0:45:48.280
<v Speaker 1>it would become a huge deal because that's when Half

0:45:48.320 --> 0:45:51.960
<v Speaker 1>Life two would come out. Meanwhile, we're still back in

0:45:51.960 --> 0:45:55.760
<v Speaker 1>two thousand two. Remember that's when Valve announced that Steam

0:45:55.800 --> 0:45:57.840
<v Speaker 1>was going to launch. It was that the game developer

0:45:57.840 --> 0:46:01.200
<v Speaker 1>a conference in two thousand two. Valve also launched that

0:46:01.280 --> 0:46:04.680
<v Speaker 1>year a second initiative called Valve Anti Cheat or v

0:46:04.760 --> 0:46:07.640
<v Speaker 1>A c VAC. There have been a couple of different

0:46:07.719 --> 0:46:11.200
<v Speaker 1>versions of that. This was software that was designed to

0:46:11.239 --> 0:46:14.640
<v Speaker 1>detect modifications to games that allowed players to cheat in

0:46:14.719 --> 0:46:17.680
<v Speaker 1>multiplayer matches, and there are a lot of different variations

0:46:17.719 --> 0:46:20.960
<v Speaker 1>of this. You know, things that would cause bullets to

0:46:21.040 --> 0:46:24.520
<v Speaker 1>miss you, or things that would allow you to have

0:46:24.640 --> 0:46:29.200
<v Speaker 1>like an auto aim feature essentially on players, especially for headshots,

0:46:29.239 --> 0:46:32.799
<v Speaker 1>because those would be instantly fatal in games like Counterstrike.

0:46:33.160 --> 0:46:34.839
<v Speaker 1>So there were a lot of different cheats out there

0:46:34.880 --> 0:46:40.440
<v Speaker 1>that would take advantage of the fact that you know,

0:46:40.560 --> 0:46:44.800
<v Speaker 1>Valve wanted the mod community to be really, really healthy,

0:46:44.960 --> 0:46:48.239
<v Speaker 1>which meant releasing the software developer kits. But that means

0:46:48.280 --> 0:46:52.800
<v Speaker 1>you're giving people the tools to see how the game works,

0:46:52.920 --> 0:46:57.319
<v Speaker 1>understand it, and potentially make these workarounds, these cheats that

0:46:57.360 --> 0:47:01.319
<v Speaker 1>will allow you to UH to boost your abilities or

0:47:01.440 --> 0:47:06.960
<v Speaker 1>remove your opponents abilities unfairly. And in order to counteract that,

0:47:07.239 --> 0:47:10.240
<v Speaker 1>Valve began to develop this software. There are other pieces

0:47:10.239 --> 0:47:12.560
<v Speaker 1>of software that were in place at the time that

0:47:12.719 --> 0:47:15.640
<v Speaker 1>Valve could have acquired, but instead they chose to develop

0:47:15.680 --> 0:47:18.759
<v Speaker 1>their own in house software and they just stopped supporting

0:47:18.800 --> 0:47:23.160
<v Speaker 1>the other types of anti cheating software. So the way

0:47:23.200 --> 0:47:25.319
<v Speaker 1>this one would work is it would look for anomalies

0:47:25.480 --> 0:47:28.719
<v Speaker 1>within games. UH. It would first look for anything that

0:47:28.760 --> 0:47:31.560
<v Speaker 1>it was identifiable, stuff that was already listed in its

0:47:31.640 --> 0:47:34.759
<v Speaker 1>cheap code database, so it's looking for anything that it

0:47:34.960 --> 0:47:40.319
<v Speaker 1>has already recognized previously. It would also look for other anomalies,

0:47:40.640 --> 0:47:43.440
<v Speaker 1>unfamiliar anomalies. Maybe there's a new cheat code, because the

0:47:43.480 --> 0:47:47.000
<v Speaker 1>way hackers work as they keep on making stuff, as

0:47:47.080 --> 0:47:50.080
<v Speaker 1>as code changes, hackers will change up their approach to

0:47:50.120 --> 0:47:52.640
<v Speaker 1>try and take advantage of the way that code works.

0:47:53.320 --> 0:47:56.080
<v Speaker 1>So the software itself had to have the ability to

0:47:56.239 --> 0:48:00.480
<v Speaker 1>identify things that were outside the norm of regular gameplay,

0:48:01.200 --> 0:48:06.520
<v Speaker 1>and then upon detection, the various game engineers could take

0:48:06.560 --> 0:48:09.680
<v Speaker 1>a look at those anomalies and determine, all right, is

0:48:09.719 --> 0:48:14.239
<v Speaker 1>this actually indication of a cheat? Is it a glitch?

0:48:14.600 --> 0:48:17.279
<v Speaker 1>Is it just a weird thing that happened because this

0:48:17.320 --> 0:48:21.080
<v Speaker 1>one particular seve circumstances that had never happened before in

0:48:21.080 --> 0:48:24.480
<v Speaker 1>a game, did happen in this game? Because sometimes that happens.

0:48:24.719 --> 0:48:27.640
<v Speaker 1>Sometimes it's not so much someone's cheating as it's just

0:48:28.080 --> 0:48:34.480
<v Speaker 1>something that the game cannot typically handle. Happens because infinite possibilities,

0:48:34.480 --> 0:48:37.120
<v Speaker 1>you know, and the game reacts in a way that

0:48:37.160 --> 0:48:40.000
<v Speaker 1>you could not predict. So these engineers would review things

0:48:40.040 --> 0:48:43.880
<v Speaker 1>and then they could ban a player. Now, the original

0:48:43.960 --> 0:48:45.840
<v Speaker 1>duration of the band this was back in the counter

0:48:45.880 --> 0:48:50.680
<v Speaker 1>strike days, because counter Strike was really the the target

0:48:50.880 --> 0:48:53.319
<v Speaker 1>of a lot of cheating. I mean, there was tons

0:48:53.360 --> 0:48:57.200
<v Speaker 1>of cheaters who were flocking to a counter strike That

0:48:57.239 --> 0:48:59.840
<v Speaker 1>original band length was twenty four hours, so if you

0:49:00.000 --> 0:49:02.640
<v Speaker 1>are caught cheating, you would be banned for twenty four

0:49:02.680 --> 0:49:05.959
<v Speaker 1>hours from the servers and you could not play. As

0:49:06.000 --> 0:49:08.640
<v Speaker 1>the system evolved, the bands would actually grow in length.

0:49:08.719 --> 0:49:11.120
<v Speaker 1>They become one year or five years, and eventually in

0:49:11.120 --> 0:49:15.080
<v Speaker 1>two thousand five they became lifetime bands. So don't cheat.

0:49:15.360 --> 0:49:18.480
<v Speaker 1>I guess it's the lesson there. So I mentioned what

0:49:18.560 --> 0:49:22.520
<v Speaker 1>was happening on the back end. Um. Once people were

0:49:22.560 --> 0:49:25.239
<v Speaker 1>able to take a look at something an anomaly and

0:49:25.280 --> 0:49:27.520
<v Speaker 1>determined that yes, in fact, this is a cheat, they

0:49:27.520 --> 0:49:29.799
<v Speaker 1>could then add that to a database, which meant that

0:49:29.880 --> 0:49:33.279
<v Speaker 1>from that point forward, the system could automatically detect other

0:49:33.360 --> 0:49:37.480
<v Speaker 1>instances of that same cheat. So even if someone developed

0:49:37.480 --> 0:49:40.919
<v Speaker 1>a new type of cheating software and they rolled it out,

0:49:41.360 --> 0:49:44.000
<v Speaker 1>this particular anti cheat software could pick up on it

0:49:44.040 --> 0:49:48.480
<v Speaker 1>relatively quickly, and after review, it could be built into

0:49:48.560 --> 0:49:51.360
<v Speaker 1>the system to be detected automatically when it happens in

0:49:51.360 --> 0:49:54.840
<v Speaker 1>the future, so that bands happened without too much human

0:49:54.880 --> 0:49:58.440
<v Speaker 1>interaction required. Now, there's some types of hacks that the

0:49:58.480 --> 0:50:02.520
<v Speaker 1>software could not detect. For example, if you use the

0:50:02.600 --> 0:50:06.440
<v Speaker 1>software Developer Kit to modify the game engine in a

0:50:06.440 --> 0:50:09.600
<v Speaker 1>way where you can see through the various textures. It

0:50:09.680 --> 0:50:12.080
<v Speaker 1>essentially gives you the equivalent of X ray visions. You

0:50:12.120 --> 0:50:15.279
<v Speaker 1>can look right through walls and other obstacles and just

0:50:15.320 --> 0:50:17.560
<v Speaker 1>see where other players are. No matter where they are at.

0:50:17.880 --> 0:50:20.560
<v Speaker 1>You might just see an outline for things like walls

0:50:20.560 --> 0:50:23.799
<v Speaker 1>and doors and that kind of stuff. Uh, that kind

0:50:23.840 --> 0:50:27.480
<v Speaker 1>of cheat would not get picked up by the VAC software,

0:50:27.680 --> 0:50:29.920
<v Speaker 1>So there were people who were using that so they

0:50:29.960 --> 0:50:32.279
<v Speaker 1>could keep an eye on an opposing team. Even if

0:50:32.280 --> 0:50:35.439
<v Speaker 1>they were hidden behind cover or sneaking around, it didn't matter.

0:50:35.520 --> 0:50:38.359
<v Speaker 1>You could see them. And that could also explain how

0:50:38.400 --> 0:50:40.560
<v Speaker 1>if you are up against an opponent and they always

0:50:40.560 --> 0:50:42.640
<v Speaker 1>seem to know where you are, no matter how careful

0:50:42.680 --> 0:50:45.799
<v Speaker 1>you are, it could be they're using that cheat against you,

0:50:46.080 --> 0:50:49.120
<v Speaker 1>or they might just be really wicked good. Sometimes, if

0:50:49.160 --> 0:50:51.799
<v Speaker 1>you play enough games, you'd learn all the tricks and

0:50:51.840 --> 0:50:55.920
<v Speaker 1>you just go with the probabilities. If you know, people

0:50:55.960 --> 0:50:58.759
<v Speaker 1>tend to rush out this one door at the top

0:50:58.800 --> 0:51:01.480
<v Speaker 1>of matches, you know, to camp that door and take

0:51:01.480 --> 0:51:05.920
<v Speaker 1>people out. But there are people who will cheat. I

0:51:05.960 --> 0:51:08.279
<v Speaker 1>don't get it. I don't understand cheats. I mean I

0:51:08.320 --> 0:51:09.840
<v Speaker 1>realized that when you play a game, you want to

0:51:09.880 --> 0:51:13.000
<v Speaker 1>feel like you're the best, But using cheats doesn't mean

0:51:13.200 --> 0:51:16.120
<v Speaker 1>you're the best at all. In fact, very much means

0:51:16.160 --> 0:51:18.320
<v Speaker 1>the opposite of that. You're really just taking the game

0:51:19.080 --> 0:51:22.360
<v Speaker 1>out of it. There's no skill there, You're just cheating,

0:51:22.719 --> 0:51:25.600
<v Speaker 1>and all you're really doing is punishing other players. I mean,

0:51:25.800 --> 0:51:29.520
<v Speaker 1>any sort of success you're experiencing isn't due to your

0:51:29.600 --> 0:51:34.439
<v Speaker 1>own skill. So if you're only happy because you're making

0:51:34.440 --> 0:51:37.759
<v Speaker 1>other people miserable, well I would suggest that you start

0:51:37.800 --> 0:51:40.520
<v Speaker 1>asking yourself some pretty tough questions about why making other

0:51:40.520 --> 0:51:44.359
<v Speaker 1>people unhappy makes you happy, because that doesn't seem cool

0:51:44.440 --> 0:51:46.520
<v Speaker 1>to me because it's kind of messed up. Man. But

0:51:48.040 --> 0:51:50.759
<v Speaker 1>never mind it. That's off topic. We've got a lot

0:51:50.800 --> 0:51:53.960
<v Speaker 1>more to chat about with the story of Valve Part two,

0:51:54.200 --> 0:51:58.120
<v Speaker 1>but first let's take another quick break to thank our sponsor.

0:52:04.800 --> 0:52:07.600
<v Speaker 1>All Right, we're back now. It's two thousand three and

0:52:07.640 --> 0:52:11.000
<v Speaker 1>a major event happens to Valve. That becomes an example

0:52:11.040 --> 0:52:14.000
<v Speaker 1>of how game companies have some huge issues to contend

0:52:14.000 --> 0:52:17.280
<v Speaker 1>with that are outside of actually making a game work.

0:52:17.760 --> 0:52:20.440
<v Speaker 1>That's that's enough right there, right, just trying to create

0:52:20.440 --> 0:52:23.719
<v Speaker 1>a game that does what's supposed to do. That's fun

0:52:23.800 --> 0:52:26.799
<v Speaker 1>to play that can be a successful product in a

0:52:26.920 --> 0:52:30.879
<v Speaker 1>very crowded marketplace. That's already a huge challenge, but Valve

0:52:30.960 --> 0:52:36.160
<v Speaker 1>encountered something else that was even more complicated. Someone managed

0:52:36.360 --> 0:52:41.000
<v Speaker 1>to infiltrate valves computer system. They stole the source code

0:52:41.320 --> 0:52:44.680
<v Speaker 1>for Half Life two, which was in development at the time.

0:52:44.719 --> 0:52:48.400
<v Speaker 1>It was not finished, and then that source code found

0:52:48.440 --> 0:52:52.400
<v Speaker 1>its way onto the Internet and got wide distribution across

0:52:52.440 --> 0:52:55.520
<v Speaker 1>the Internet. People were pirating the source code for the

0:52:55.560 --> 0:53:01.800
<v Speaker 1>game left and right. This was a disaster, so gamers

0:53:01.800 --> 0:53:05.240
<v Speaker 1>were really eager to continue those adventures of Gordon Freeman

0:53:05.280 --> 0:53:08.520
<v Speaker 1>from Half Life. They began to scoop up this source code,

0:53:09.120 --> 0:53:11.759
<v Speaker 1>and it wasn't really finished. It wasn't a full game.

0:53:11.880 --> 0:53:14.800
<v Speaker 1>It was only the way you know as the game engine.

0:53:14.800 --> 0:53:16.279
<v Speaker 1>Really it was the way the game worked, and it

0:53:16.360 --> 0:53:19.360
<v Speaker 1>had some stuff in it, but it wasn't a fleshed

0:53:19.360 --> 0:53:24.239
<v Speaker 1>out product. And part of that ended up being a

0:53:24.280 --> 0:53:27.360
<v Speaker 1>huge black eye for Valve, not just because the source

0:53:27.400 --> 0:53:30.000
<v Speaker 1>code leaked that someone managed to infiltrate their systems, but

0:53:30.040 --> 0:53:33.040
<v Speaker 1>also because the game was supposed to come out in

0:53:33.080 --> 0:53:35.800
<v Speaker 1>two thousand three. Half Life two was supposed to debut

0:53:35.840 --> 0:53:39.600
<v Speaker 1>in two thousand three, but it wasn't ready, and the

0:53:39.640 --> 0:53:43.600
<v Speaker 1>company had not yet publicly addressed this issue. They had

0:53:43.640 --> 0:53:47.400
<v Speaker 1>not admitted that the game was going to be a

0:53:47.560 --> 0:53:51.959
<v Speaker 1>year a moother another year in development. Uh, it was late,

0:53:52.680 --> 0:53:55.440
<v Speaker 1>but they had not actually said that it was going

0:53:55.480 --> 0:53:59.279
<v Speaker 1>to take another year. So this was a big issue

0:53:59.320 --> 0:54:01.360
<v Speaker 1>because Valve not get a chance to get ahead of

0:54:01.360 --> 0:54:04.560
<v Speaker 1>the story and say, you know, we promised this game

0:54:04.560 --> 0:54:07.319
<v Speaker 1>in two thousand three. It is not ready. We don't

0:54:07.360 --> 0:54:10.040
<v Speaker 1>want to release a game before it's ready, because it

0:54:10.080 --> 0:54:12.799
<v Speaker 1>will be a terrible experience for you. It will be

0:54:12.800 --> 0:54:16.439
<v Speaker 1>a terrible experience for us. So trust us, We're going

0:54:16.520 --> 0:54:18.600
<v Speaker 1>to continue working on the game. It will come out

0:54:18.640 --> 0:54:21.520
<v Speaker 1>next year. They didn't even have that chance. It was

0:54:21.560 --> 0:54:26.680
<v Speaker 1>spoiled for them. So game Newell ultimately discovered that his

0:54:26.800 --> 0:54:30.000
<v Speaker 1>own corporate email account had been compromised and that key

0:54:30.040 --> 0:54:33.440
<v Speaker 1>logging software had been installed on machines in the Valve offices.

0:54:33.920 --> 0:54:36.880
<v Speaker 1>Key logging, by the way, does exactly what it sounds like.

0:54:36.880 --> 0:54:41.200
<v Speaker 1>It logs key strokes. Hackers use these programs to spy

0:54:41.480 --> 0:54:44.360
<v Speaker 1>upon people in general, and in particularly use them to

0:54:44.440 --> 0:54:48.720
<v Speaker 1>get login ideas and passwords to systems. So you essentially

0:54:48.760 --> 0:54:52.520
<v Speaker 1>get a a document of all the different key strokes

0:54:52.760 --> 0:54:56.840
<v Speaker 1>used on that machine while the key logging software was active,

0:54:57.480 --> 0:55:00.000
<v Speaker 1>and if someone was using it to log into accounts,

0:55:00.040 --> 0:55:03.480
<v Speaker 1>then you get those passwords. It's a clever way to

0:55:03.520 --> 0:55:10.560
<v Speaker 1>get around all that encryption nonsense, right, It's also really nasty. Well.

0:55:10.560 --> 0:55:14.800
<v Speaker 1>The culprit turned out to be a young German guy.

0:55:15.200 --> 0:55:17.080
<v Speaker 1>I think he was a teenager, might have been eighteen

0:55:17.120 --> 0:55:21.919
<v Speaker 1>at the time. I think his name was Axel Gimbe. Uh,

0:55:21.920 --> 0:55:25.040
<v Speaker 1>it might just be gimb My German is really rusty,

0:55:25.160 --> 0:55:28.200
<v Speaker 1>so on my apologies, but gimb g E m b

0:55:28.440 --> 0:55:34.720
<v Speaker 1>E had gotten into hacking after he himself had been hacked. Uh.

0:55:34.760 --> 0:55:38.640
<v Speaker 1>He had installed malware on his system accidentally. He was

0:55:38.680 --> 0:55:41.359
<v Speaker 1>trying to get a pirate copy of the game Warcraft

0:55:41.480 --> 0:55:45.720
<v Speaker 1>three at the time, and instead of getting really upset

0:55:45.760 --> 0:55:49.160
<v Speaker 1>and he decided to reverse engineer the malware. He learned

0:55:49.160 --> 0:55:52.280
<v Speaker 1>how it worked, and I learned more about creating malware

0:55:52.280 --> 0:55:55.960
<v Speaker 1>of his own in order to infiltrate systems. His goal

0:55:56.600 --> 0:55:58.440
<v Speaker 1>was to be able to play games. He wanted to

0:55:58.440 --> 0:56:00.640
<v Speaker 1>play as many games as he possibly could, and he

0:56:00.880 --> 0:56:03.520
<v Speaker 1>felt like he couldn't buy them. He didn't have the

0:56:03.560 --> 0:56:07.160
<v Speaker 1>money for them, and he had what was described in

0:56:07.280 --> 0:56:10.040
<v Speaker 1>multiple sources as a rough upbringing. So I suspect that

0:56:10.080 --> 0:56:11.960
<v Speaker 1>he didn't have a whole of support at home to

0:56:12.040 --> 0:56:16.080
<v Speaker 1>get into the hobby that he enjoyed. So he really

0:56:16.080 --> 0:56:18.480
<v Speaker 1>wanted to play the games, and he decided that stealing

0:56:18.480 --> 0:56:20.880
<v Speaker 1>them would be fine. That it was. You know, it

0:56:20.920 --> 0:56:23.440
<v Speaker 1>wasn't that he was trying to sabotage a game. He

0:56:23.560 --> 0:56:26.320
<v Speaker 1>just really wanted to play things and he didn't otherwise

0:56:26.360 --> 0:56:28.719
<v Speaker 1>have an opportunity. By the way, this is no way

0:56:28.800 --> 0:56:32.400
<v Speaker 1>justifies stealing a game. In case you were wondering, just

0:56:32.440 --> 0:56:35.000
<v Speaker 1>because something exists doesn't mean that you have a right

0:56:35.080 --> 0:56:38.000
<v Speaker 1>to it. That might come as news to some of you,

0:56:38.080 --> 0:56:39.600
<v Speaker 1>and I know that there have been people in the

0:56:39.600 --> 0:56:42.560
<v Speaker 1>past who have yelled at me for getting on my

0:56:42.640 --> 0:56:48.279
<v Speaker 1>soapbox about this, but it it remains true that just

0:56:48.360 --> 0:56:51.120
<v Speaker 1>because something exists doesn't mean you have a right to it.

0:56:52.160 --> 0:56:56.759
<v Speaker 1>Now that being said, any company that makes something and

0:56:57.080 --> 0:57:01.839
<v Speaker 1>does not make it available to everyone, uh, they don't

0:57:01.880 --> 0:57:06.080
<v Speaker 1>deserve to be the targets of theft. But they certainly

0:57:06.080 --> 0:57:10.080
<v Speaker 1>are making themselves big targets because if they make something

0:57:10.080 --> 0:57:13.920
<v Speaker 1>people want and then they don't make it available, that's

0:57:14.040 --> 0:57:19.040
<v Speaker 1>just encouraging lots of bad behavior, so blame goes all around,

0:57:19.080 --> 0:57:21.480
<v Speaker 1>although ultimately it falls on the thief, I would argue

0:57:22.080 --> 0:57:24.960
<v Speaker 1>while Axel found the source code for Half Life too,

0:57:25.000 --> 0:57:27.959
<v Speaker 1>while he was snooping around Valves network. He was able

0:57:28.000 --> 0:57:32.200
<v Speaker 1>to get access to the network because he found access

0:57:32.240 --> 0:57:35.000
<v Speaker 1>to another company that was doing business with Valve and

0:57:35.040 --> 0:57:38.280
<v Speaker 1>there was sort of a tunnel between that company's server

0:57:38.520 --> 0:57:43.120
<v Speaker 1>and Valved servers. So by infiltrating this partnered company that

0:57:43.240 --> 0:57:47.440
<v Speaker 1>had pretty poor security, he was able to then get

0:57:47.480 --> 0:57:52.120
<v Speaker 1>access to Valves system, which had pretty good security on

0:57:52.200 --> 0:57:54.800
<v Speaker 1>the whole, but did not have good security with this

0:57:54.920 --> 0:57:59.840
<v Speaker 1>partnered relationship. Uh. He then started looking around. At first,

0:57:59.880 --> 0:58:03.440
<v Speaker 1>he was pulling out documentation about the game and just

0:58:03.560 --> 0:58:06.480
<v Speaker 1>reading about it and getting really excited, and then one

0:58:06.520 --> 0:58:09.160
<v Speaker 1>day he discovered the source code and he made the

0:58:09.200 --> 0:58:12.240
<v Speaker 1>decision to download it. He did that on September nineteen,

0:58:12.360 --> 0:58:15.200
<v Speaker 1>two thousand three. Now, Axel has said that he never

0:58:15.280 --> 0:58:18.840
<v Speaker 1>uploaded that source code to the Internet, but he does

0:58:18.880 --> 0:58:22.720
<v Speaker 1>admit that he shared that code with someone else, and

0:58:22.840 --> 0:58:25.800
<v Speaker 1>that person, who as far as I know, was never named,

0:58:26.600 --> 0:58:29.800
<v Speaker 1>did take the step to upload it to the internet.

0:58:29.920 --> 0:58:34.920
<v Speaker 1>Axel had said that he was initially promised that this

0:58:34.960 --> 0:58:37.840
<v Speaker 1>person he showed the source code to wasn't going to

0:58:37.960 --> 0:58:40.880
<v Speaker 1>do anything with it. Axel was very proud of his

0:58:40.920 --> 0:58:43.320
<v Speaker 1>accomplishment and he wanted to kind of brag a little bit.

0:58:43.800 --> 0:58:47.560
<v Speaker 1>But apparently he took this person at his or her

0:58:47.640 --> 0:58:49.920
<v Speaker 1>word that they were not going to share the code,

0:58:49.960 --> 0:58:54.120
<v Speaker 1>and then of course the code got shared, so the

0:58:54.200 --> 0:58:56.640
<v Speaker 1>code made the rounds on the internet. People downloaded it

0:58:56.720 --> 0:59:00.600
<v Speaker 1>like crazy. The potential impact of val of his bottom

0:59:00.600 --> 0:59:04.960
<v Speaker 1>line was catastrophic, or it could have been catastrophic. It's

0:59:04.960 --> 0:59:09.600
<v Speaker 1>actually impossible to say you never know how many sales

0:59:09.680 --> 0:59:13.000
<v Speaker 1>you miss out on on these things. You can't say

0:59:13.040 --> 0:59:17.040
<v Speaker 1>that for sure, because you until you actually make the sales.

0:59:17.120 --> 0:59:18.960
<v Speaker 1>You don't know how many people bought the thing, and

0:59:19.240 --> 0:59:21.480
<v Speaker 1>you'll never know how many people would have bought it

0:59:21.560 --> 0:59:25.520
<v Speaker 1>had they not pirated it. They impact on sales. Argument

0:59:25.560 --> 0:59:30.200
<v Speaker 1>against piracy is a shaky one because we make those

0:59:30.280 --> 0:59:35.240
<v Speaker 1>arguments without knowing how many sales were actually prevented. At

0:59:35.280 --> 0:59:39.280
<v Speaker 1>any rate. It was an embarrassing situation for Valve, and

0:59:39.360 --> 0:59:42.320
<v Speaker 1>it's certainly caused them financial issues because they had to

0:59:42.360 --> 0:59:45.720
<v Speaker 1>respond to it, and they also had to respond to

0:59:45.760 --> 0:59:50.000
<v Speaker 1>the fact that gamers now knew that Half Life two

0:59:50.160 --> 0:59:54.240
<v Speaker 1>was nowhere close to being finished game. Newell actually took

0:59:54.240 --> 0:59:56.640
<v Speaker 1>to posting to a thread and half Life two. This

0:59:56.760 --> 1:00:00.240
<v Speaker 1>was on October second, two thousand three, and there was

1:00:00.520 --> 1:00:03.800
<v Speaker 1>a forum official forum on Valves website for half Life two,

1:00:04.240 --> 1:00:07.640
<v Speaker 1>and Newell wrote and laid the cards on the table

1:00:07.680 --> 1:00:10.840
<v Speaker 1>and said, hey, half Life two is not ready. It's

1:00:10.880 --> 1:00:13.600
<v Speaker 1>not gonna be ready for another year. The source code

1:00:14.000 --> 1:00:16.960
<v Speaker 1>that is not the game, but is the work on

1:00:17.040 --> 1:00:21.520
<v Speaker 1>the game in progress got released, uh prematurely. It was

1:00:21.600 --> 1:00:24.240
<v Speaker 1>leaked and released, and we would like some help tracking

1:00:24.280 --> 1:00:27.920
<v Speaker 1>down the person who did this. Within Valved, things were

1:00:27.920 --> 1:00:31.080
<v Speaker 1>looking pretty grim. Development for half Life two was costing

1:00:31.080 --> 1:00:33.960
<v Speaker 1>about a million dollars per month and the game was

1:00:34.040 --> 1:00:37.240
<v Speaker 1>clearly a year out from being finished. So even if

1:00:37.320 --> 1:00:40.280
<v Speaker 1>you had not read Gabe Newell's post, if you looked

1:00:40.320 --> 1:00:42.880
<v Speaker 1>at that source code, you realize, like, this isn't a game,

1:00:43.520 --> 1:00:46.680
<v Speaker 1>this is a lot of code. In fact, initially if

1:00:46.680 --> 1:00:48.640
<v Speaker 1>you just download the source code, it went and run

1:00:48.680 --> 1:00:52.240
<v Speaker 1>on most machines, you would have to build a platform

1:00:52.400 --> 1:00:55.000
<v Speaker 1>upon which it could run. So a lot of people

1:00:55.160 --> 1:00:58.560
<v Speaker 1>it was just useless information, and there was a legitimate

1:00:58.600 --> 1:01:01.400
<v Speaker 1>fear within Valve that the leak would cause enough damage

1:01:01.440 --> 1:01:04.600
<v Speaker 1>to destroy the company before it could even complete Half

1:01:04.640 --> 1:01:07.800
<v Speaker 1>Life too, and a lot of employees felt demoralized. Their

1:01:07.840 --> 1:01:11.280
<v Speaker 1>unfinished work was stolen and was being judged unfairly because

1:01:11.280 --> 1:01:15.400
<v Speaker 1>it wasn't finished. Uh, it was not remotely a fun

1:01:15.640 --> 1:01:18.600
<v Speaker 1>or complete game. So they were going to be judged

1:01:18.640 --> 1:01:21.560
<v Speaker 1>on something that was just the bones of a game,

1:01:21.720 --> 1:01:25.120
<v Speaker 1>and they were dealing with a community that was mad

1:01:25.160 --> 1:01:27.840
<v Speaker 1>at them because the title was so far behind schedule

1:01:27.920 --> 1:01:31.120
<v Speaker 1>and they had not yet you know, admitted to that

1:01:31.800 --> 1:01:35.760
<v Speaker 1>when this all happened. Axel would eventually send an email

1:01:35.800 --> 1:01:38.600
<v Speaker 1>to Valve admitting his theft and said that he felt

1:01:38.600 --> 1:01:40.760
<v Speaker 1>badly about how it turned out that he did not

1:01:40.880 --> 1:01:44.680
<v Speaker 1>intend for the code to go public. He also perhaps

1:01:45.080 --> 1:01:49.200
<v Speaker 1>brazenly asked about getting a job at Valve now. Newell

1:01:49.280 --> 1:01:51.800
<v Speaker 1>said he would be interested to talk to Axel and

1:01:51.880 --> 1:01:55.040
<v Speaker 1>they would set up a phone interview. At the conclusion

1:01:55.040 --> 1:01:58.240
<v Speaker 1>of that phone interview, at which Axel was, you know,

1:01:58.280 --> 1:02:00.240
<v Speaker 1>talking with a different person at Valvue was and toy

1:02:00.320 --> 1:02:04.080
<v Speaker 1>that Gabe Newell himself self. But Axel was told, Hey,

1:02:04.120 --> 1:02:05.880
<v Speaker 1>you know, we're interested in flying you out to the

1:02:05.960 --> 1:02:08.840
<v Speaker 1>United States and have a second interview here in person.

1:02:10.120 --> 1:02:13.520
<v Speaker 1>What Axel suspected but did not know for sure, was

1:02:13.560 --> 1:02:15.520
<v Speaker 1>that this could be a trap. In fact, it was

1:02:16.320 --> 1:02:19.080
<v Speaker 1>allegedly a trap. It was not a real job interview.

1:02:19.120 --> 1:02:20.800
<v Speaker 1>It was an attempt to get Axel to come over

1:02:20.840 --> 1:02:22.640
<v Speaker 1>to the United States where he could be apprehended by

1:02:22.680 --> 1:02:29.080
<v Speaker 1>the FBI and then held and interrogated there for the

1:02:29.080 --> 1:02:34.560
<v Speaker 1>whole purpose of prosecuting him on US soil. Axel agreed

1:02:34.600 --> 1:02:38.040
<v Speaker 1>to the interview, but before he could actually be flown

1:02:38.080 --> 1:02:39.560
<v Speaker 1>over to the United States, you know, they had to

1:02:39.560 --> 1:02:42.040
<v Speaker 1>get visas for him and his family and everything. Before

1:02:42.040 --> 1:02:45.040
<v Speaker 1>he could do that, the German authorities acted and they

1:02:45.160 --> 1:02:48.240
<v Speaker 1>raided his house and they arrested him, and happened on

1:02:48.280 --> 1:02:52.840
<v Speaker 1>May seventh, two thousand four. That's when they burst into

1:02:52.880 --> 1:02:55.800
<v Speaker 1>his house and they held him for questioning. And they

1:02:55.800 --> 1:02:59.040
<v Speaker 1>were concerned not just with his involvement with the valve

1:02:59.120 --> 1:03:02.800
<v Speaker 1>infiltration and the leaking of the half life source code.

1:03:02.840 --> 1:03:05.960
<v Speaker 1>In fact, that really wasn't what they were really worried about.

1:03:06.040 --> 1:03:09.600
<v Speaker 1>They thought that he might have had some involvement with

1:03:09.920 --> 1:03:13.000
<v Speaker 1>a different piece of malware called the sassor worm. I'll

1:03:13.040 --> 1:03:15.080
<v Speaker 1>have to do a full episode about the Sassor worm.

1:03:15.120 --> 1:03:17.800
<v Speaker 1>It was a big deal at the time. Axel actually

1:03:17.800 --> 1:03:20.520
<v Speaker 1>was a bit insulted by this accusation because he felt

1:03:20.520 --> 1:03:24.640
<v Speaker 1>the Sassor worm was shoddy coding. He actually said, well,

1:03:24.640 --> 1:03:27.760
<v Speaker 1>the the malware of the Sassor worm. Sure, it's based

1:03:27.800 --> 1:03:32.040
<v Speaker 1>off the same basic vulnerability that my stuff was based

1:03:32.040 --> 1:03:34.920
<v Speaker 1>off of. But the sasser worm would cause your system

1:03:34.960 --> 1:03:37.040
<v Speaker 1>to crash where his mind would keep it stable. So

1:03:37.200 --> 1:03:39.960
<v Speaker 1>I would never code something that crappy. It's kind of

1:03:39.960 --> 1:03:42.960
<v Speaker 1>funny really, but authorities were really concerned about it. It

1:03:43.000 --> 1:03:47.640
<v Speaker 1>was freaking havoc in Europe. So Axel admitted uh to

1:03:48.080 --> 1:03:51.120
<v Speaker 1>infiltrating Valve. He explained the whole thing, how he was

1:03:51.200 --> 1:03:55.000
<v Speaker 1>able to do it, what he had stolen. He continued

1:03:55.040 --> 1:03:57.960
<v Speaker 1>to to say that he was not the person to

1:03:58.000 --> 1:04:00.960
<v Speaker 1>share the information on the internet, but he did, you know,

1:04:01.000 --> 1:04:03.840
<v Speaker 1>he was ultimately responsible for the code getting out there

1:04:03.920 --> 1:04:06.080
<v Speaker 1>because he was the one who gave that code to

1:04:06.120 --> 1:04:09.280
<v Speaker 1>the person who did share it. And um, he said

1:04:09.280 --> 1:04:11.160
<v Speaker 1>the whole thing was motivated by his desire to play

1:04:11.200 --> 1:04:14.080
<v Speaker 1>the games, that he wasn't trying to do industrial sabotage

1:04:14.160 --> 1:04:17.840
<v Speaker 1>or anything like that. The German authorities told him that

1:04:17.920 --> 1:04:20.640
<v Speaker 1>he was actually lucky to have been apprehended in Germany

1:04:20.760 --> 1:04:23.560
<v Speaker 1>rather than finding himself overseas and in the custody of

1:04:23.600 --> 1:04:27.080
<v Speaker 1>the FBI. Axel eventually would stand trial for his crimes

1:04:27.120 --> 1:04:30.880
<v Speaker 1>against Valve and was sentenced to two years probation, and

1:04:30.960 --> 1:04:34.120
<v Speaker 1>since then he's expressed deep regret over his action, saying

1:04:34.120 --> 1:04:36.560
<v Speaker 1>he wished he could go back in time and not

1:04:36.840 --> 1:04:40.760
<v Speaker 1>do those things because he genuinely loved the games, and

1:04:40.800 --> 1:04:43.080
<v Speaker 1>while he was motivated with a desire to play the games,

1:04:43.080 --> 1:04:47.600
<v Speaker 1>he realizes that that was a kind of childish and

1:04:47.840 --> 1:04:51.960
<v Speaker 1>selfish motivation and ultimately it caused a lot of problems

1:04:51.960 --> 1:04:54.920
<v Speaker 1>for Valve, the very company that he loved, and he

1:04:55.000 --> 1:04:59.000
<v Speaker 1>loves the games from Valve. So he certainly feels a

1:04:59.040 --> 1:05:01.520
<v Speaker 1>lot of regret for his role in that whole thing,

1:05:02.120 --> 1:05:03.880
<v Speaker 1>and he says that, you know, he you know, he

1:05:03.920 --> 1:05:09.080
<v Speaker 1>has apologized numerous times and interviews for those actions, and

1:05:09.120 --> 1:05:12.000
<v Speaker 1>I think that's an important little thing to look at

1:05:12.080 --> 1:05:16.640
<v Speaker 1>as well outside of Valve, just this whole motivation for

1:05:16.760 --> 1:05:19.400
<v Speaker 1>you know, why hackers do what they do. Not everyone

1:05:19.520 --> 1:05:21.560
<v Speaker 1>is doing it in a way to actually make a

1:05:21.600 --> 1:05:25.400
<v Speaker 1>profit or to hurt anyone and yet their actions can

1:05:25.440 --> 1:05:28.960
<v Speaker 1>cause a great deal of harm, so you can't dismiss it.

1:05:29.560 --> 1:05:33.040
<v Speaker 1>But you also can't just assume the darkest of motivators

1:05:33.080 --> 1:05:36.000
<v Speaker 1>on behalf of those hackers. As I mentioned earlier in

1:05:36.040 --> 1:05:38.640
<v Speaker 1>this episode, two thousand three was also when Steam launched,

1:05:38.640 --> 1:05:41.280
<v Speaker 1>although it was much more modest than what it is today.

1:05:41.320 --> 1:05:44.280
<v Speaker 1>And Valve also acquired another popular Half Life mod in

1:05:44.320 --> 1:05:47.040
<v Speaker 1>two thousand three, and that mod was called Day of

1:05:47.200 --> 1:05:50.560
<v Speaker 1>Defeat and it featured the Western Front of World War

1:05:50.600 --> 1:05:54.080
<v Speaker 1>Two as it's game setting. This was a multiplayer only

1:05:54.160 --> 1:05:57.040
<v Speaker 1>game in which players chose characters of various classes to

1:05:57.120 --> 1:06:01.680
<v Speaker 1>complete objectives either on the Allied side are the access side,

1:06:02.320 --> 1:06:04.520
<v Speaker 1>and they would compete against other teams obviously on the

1:06:04.560 --> 1:06:07.760
<v Speaker 1>other side of the game, which leads us up to

1:06:07.800 --> 1:06:10.200
<v Speaker 1>two thousand four. Now, that would end up being a

1:06:10.280 --> 1:06:13.240
<v Speaker 1>huge year for Valve, and I think I'm gonna have

1:06:13.320 --> 1:06:16.120
<v Speaker 1>to wrap up right here and include two thousand four

1:06:16.120 --> 1:06:19.120
<v Speaker 1>in our next episode, and we'll build from there. But

1:06:19.560 --> 1:06:23.040
<v Speaker 1>as a preview for what happens in two thousand four,

1:06:23.320 --> 1:06:25.520
<v Speaker 1>the stuff I'm going to cover more thoroughly in our

1:06:25.560 --> 1:06:29.680
<v Speaker 1>next episode. Two thousand four would see Valve release a

1:06:29.680 --> 1:06:32.959
<v Speaker 1>new game engine called Source. So they had been using

1:06:32.960 --> 1:06:35.520
<v Speaker 1>a game engine called gold Source, which was based off

1:06:35.600 --> 1:06:38.280
<v Speaker 1>the Quake game engine, and as I mentioned in the

1:06:38.320 --> 1:06:41.440
<v Speaker 1>previous episode, they changed about seventy of the code in

1:06:41.560 --> 1:06:45.680
<v Speaker 1>Quake Engine to become gold Source. Source would be a

1:06:45.720 --> 1:06:49.440
<v Speaker 1>further branch off of that and become the next generation

1:06:49.480 --> 1:06:53.280
<v Speaker 1>of game engines upon which most of Valves games would

1:06:53.320 --> 1:06:56.160
<v Speaker 1>be based from that point forward. It's also the year

1:06:56.200 --> 1:06:59.480
<v Speaker 1>that Half Life two would come out. So in our

1:06:59.480 --> 1:07:02.160
<v Speaker 1>next episod and we'll talk about the Source engine, we'll

1:07:02.160 --> 1:07:04.360
<v Speaker 1>talk about Half Life two, we'll talk about the evolution

1:07:04.360 --> 1:07:07.760
<v Speaker 1>of Steam and where Valve is today. So we'll compress

1:07:07.800 --> 1:07:10.920
<v Speaker 1>a lot of things our next episode. I know that

1:07:11.040 --> 1:07:14.320
<v Speaker 1>in Part one and Part two I was getting really

1:07:14.360 --> 1:07:17.920
<v Speaker 1>granular year by year with what was going on with Valve,

1:07:17.960 --> 1:07:20.040
<v Speaker 1>but again, this was so that we could understand the

1:07:20.120 --> 1:07:24.880
<v Speaker 1>corporate culture of Valve and its effects on how things

1:07:24.960 --> 1:07:27.880
<v Speaker 1>came out, as well as get a deeper understanding of

1:07:27.920 --> 1:07:33.760
<v Speaker 1>why gamers are so emotionally invested in this company. In

1:07:33.880 --> 1:07:36.560
<v Speaker 1>large part is because the company had already shown a

1:07:36.680 --> 1:07:42.479
<v Speaker 1>great deal of respect and value toward its customers. So

1:07:42.560 --> 1:07:47.000
<v Speaker 1>in our next episode will kind of compress the last

1:07:47.120 --> 1:07:50.680
<v Speaker 1>decade a little bit more than that of Valves existence,

1:07:50.800 --> 1:07:53.960
<v Speaker 1>and talk about where it's gone from there, including what

1:07:54.160 --> 1:07:57.520
<v Speaker 1>the heck happened to Half Life three, a question that

1:07:57.640 --> 1:08:01.280
<v Speaker 1>refuses to die well. Also talk about some other games

1:08:01.280 --> 1:08:05.040
<v Speaker 1>like Left for Dead and the Portals series and how

1:08:05.080 --> 1:08:08.600
<v Speaker 1>those got started and how they got wrapped up in Valve.

1:08:09.240 --> 1:08:11.840
<v Speaker 1>But for now, it's time to close this episode down.

1:08:11.880 --> 1:08:14.880
<v Speaker 1>I hope you enjoyed this episode. Remember if you have

1:08:14.920 --> 1:08:18.680
<v Speaker 1>any questions or suggestions for future episodes, whether it's a

1:08:18.720 --> 1:08:20.719
<v Speaker 1>topic you want me to cover, maybe it's a company,

1:08:20.800 --> 1:08:24.639
<v Speaker 1>maybe it's a specific technology, maybe it's a person who's

1:08:24.680 --> 1:08:27.680
<v Speaker 1>influential in technology, you should send me a message. Or

1:08:27.720 --> 1:08:30.400
<v Speaker 1>if you have any suggestions for people I should interview

1:08:30.680 --> 1:08:33.320
<v Speaker 1>or guest hosts who should join me on an episode

1:08:33.320 --> 1:08:35.400
<v Speaker 1>of tech Stuff. You can get in touch with me

1:08:35.479 --> 1:08:38.320
<v Speaker 1>by sending me an email. The address is tech Stuff

1:08:38.560 --> 1:08:41.880
<v Speaker 1>at how stuff works dot com, or drop me a

1:08:41.920 --> 1:08:44.479
<v Speaker 1>line on Twitter or Facebook. The handle for both of

1:08:44.479 --> 1:08:49.200
<v Speaker 1>those is tech Stuff hs W. Remember I stream these

1:08:49.240 --> 1:08:53.360
<v Speaker 1>episodes live on twitch dot tv slash tech Stuff every

1:08:53.400 --> 1:08:57.240
<v Speaker 1>Wednesday and Friday. Please join me on those days and

1:08:57.280 --> 1:08:59.120
<v Speaker 1>you can be part of the chat room and talk

1:08:59.200 --> 1:09:02.479
<v Speaker 1>with me. I'm always happy to have conversations with the

1:09:02.520 --> 1:09:05.080
<v Speaker 1>chat room, let you know what's going on. You also

1:09:05.120 --> 1:09:08.280
<v Speaker 1>get to see when I goof up, which happens, you know,

1:09:08.439 --> 1:09:11.599
<v Speaker 1>a few times per episode, so you never know. Also,

1:09:11.680 --> 1:09:15.639
<v Speaker 1>occasionally I'll just serenade you. That could also be a warning.

1:09:16.400 --> 1:09:18.760
<v Speaker 1>Remember go to twitch dot tv slash tech stuff. You'll

1:09:18.760 --> 1:09:21.240
<v Speaker 1>see the schedule there and I will talk to you again.

1:09:22.000 --> 1:09:30.360
<v Speaker 1>Really sick for more on this and thousands of other

1:09:30.439 --> 1:09:42.439
<v Speaker 1>topics because it has stop works dot com