Steam is Valve's broadband software designed to allow users of their games a way of playing those games with an entirely new experience. For example it has its own instant messsaging program so you can chat with friends, even while in a game. It also includes an auto-update feature so you're game is kept up-to-date with all patches and any other releases for the game. Valve also gives customers the option to receive new games via the steam network. You would purchase the game with your credit card, download it through Steam and punch in your serial number provided. This should bring down prices as it signifigantly lowers the cost of production.
It has been a very shakey start for Steam (to say the very least) with countless users complaing that they can't even play the game since it's release due to bugs in the program. But with a lot of beta testing under the bridge, it is looking a little more promising for their loyal fans. And with Half Life 2 just around the corner (here's hoping) it may just be a good year for Steam, and for everyone else!
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