Mike Harrington peacefully dissolves his partnership with Gabe Newell to take an extended vacation, leaving Newell as the sole head of Valve.
The company announces its Steam content delivery system, originally as a method of streamlining the patch process, but later as a replacement for the WON framework and as a distribution system for entire games.
Valve employs Bram Cohen, famous for the distributed publishing model embedded in his program BitTorrent, to work on Valve's online distribution network Steam.
Apr 29, 2005:
The company settles the differences in a lawsuit with VU Games over distribution via Steam, the ownership of Half-Life's IP and the right to grant license agreements for Valve's games to cyber cafes. Under the settlement, VU Games will cease distribution of retail packaged versions of Valve's games, effective August 31, 2005. Additionally, only Valve's licenses for cyber cafes become valid.