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Obviously it is, but it's the best DRM I've ever seen. I only buy Steam versions of games now, except for ones that are on GOG.com :)

The only thing that really bothers me about Steam is region restriction. I would have bought GTA & Max Payne bundles long time ago if they were available for purchase in my region.

Also, you don't have to constantly maintain internet connection to play Steam games - it has an offline mode. Though I've never actually used it, since I haven't been without internet for a very, very long time.

OFC, no DRM at all, like at GOG.com or very few retail games, is much better.
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Orryyrro: GOG manages the right to resell your digital merchandise, so it is DRM, just not very strictly enforced and no actual DRM programs.
That's a licensing term, rather than DRM. You could easily give the installer to someone else, and that person could use it, no checking, no restriction. GOG asks that you not do this, and trusts you not to do it.

DRM makes a negative assumption of your character and attempts to force these restrictions on you. It's actually kind of an insult, as is being told by people who don't trust me that I have to trust them.
Steam in itself isn't DRM, but it has DRM functionality that is utilized by many games. I think Static had a lot of points which you didn't really address.
Once Steam has downloaded a game, it is on your computer, and if the game does not use any third party DRM or is one of those that checks Steam for authentication (which are not every game on Steam - mostly it's the Valve and Steamworks titles, but obviously many other games - still, not all of them), you can copy the game folder to any computer or run the game without Steam.
Steam doesn't give you an installer in most cases though (at times there is a subfolder in the game folder containing all the things that you need to install to get the game working), so those games that require changes to the registry or installing of various codecs and system files are going to be harder to get running, and will require a lot of manual copying of files to their right locations and registry editing - but it's certainly not impossible or something that you'd need to use third party cracks or something to fix.
Almost all the old classics on Steam use a standard Dosbox setup, with no DRM whatsoever, many indie title don't use any DRM either.
The only thing Steam does in those cases is to obscure the location of your game files, but they can easily be found and copied, just go to where you installed steam (usually c:\program files (x86)\steam, and then go to the \steamapps\common subfolder and you'll see the folders for all the games you have installed, in many cases you won't have to do anything but to copy those game folders to another computer and run the game executable within, very few of the games made before 2005 or so check for a running Steam client and will happily start without any trace of Steam on the computer.
In many cases this isn't too different from how GOG works - once you've got the game downloaded you can do whatever you want with it, if the service suddenly shuts down without you having the files - you're screwed.
The people behind Steam have on multiple occasions said that Steam wouldn't just suddenly seize to exist, they say the would give advance warning and unlock the games that require steam authentication to run.
We obviously only have their word on that, there's no mention of that in the TOS.
Post edited September 23, 2010 by fisk0
Thanks for sharing this.
Yes, Steam is DRM.
Arguing that GOG is DRM because you lose access to your installers is stupid.
That's like saying CD's are DRM.
Your friend seems to think that idiocy is a form of DRM. Now while it certainly is restrictive, idiocy isn't something that GOG imposes on its users. It's merely something it exhibits when pulling PR stunts.
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Weclock: Thanks for sharing this.
Yes, Steam is DRM.
Arguing that GOG is DRM because you lose access to your installers is stupid.
That's like saying CD's are DRM.
You can resell CD's, you can't resell an individual game from gog.
Any software that restricts you from running the game is DRM.

Steam restricts you from running the game before authenticating yourself to the servers. Yes, it is DRM.

GOG restricts you from downloading the game before you authenticate yourself to the servers. That is different from "running" the game. Well, I don't think I can define this as a software DRM measure.
Yeah, Steam is technically DRM, but you have to consider just how successful Steam is combined with how many computers and households have access to the internet these days. I wouldn't be too worried about Steam going out of business any time soon.
Post edited September 23, 2010 by Dr_Worm
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baosen: Any software that restricts you from running the game is DRM.
Steam restricts you from running the game before authenticating yourself to the servers. Yes, it is DRM.
GOG restricts you from downloading the game before you authenticate yourself to the servers. That is different from "running" the game. Well, I don't think I can define this as a software DRM measure.
D means digital, R means rights, M means management, none of those words say that it has to be imposed with software. It just has to manage your digital rights, like, for instance, the right of first sale.
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Dr_Worm: Yeah, Steam is technically DRM, you have to consider just how successful Steam is combined with how many computers and households have access to the internet these days.
There is no technically about it. Steam is DRM and thats a fact. It's one of the best currently in use but it's still DRM.
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Weclock: Thanks for sharing this.
Yes, Steam is DRM.
Arguing that GOG is DRM because you lose access to your installers is stupid.
That's like saying CD's are DRM.
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Orryyrro: You can resell CD's, you can't resell an individual game from gog.
Yes, but if GOG breaks, you lose your games, if a CD breaks, you lose your games. FYI.
Yes, Steam is DRM and no I don't like the fact that it's DRM.

However, I'm ok with that in Steam's case since overall I think it's done more good than bad for PC gaming. At the very least it tries to give back to the user in the form of some type of service to compensate for what it takes away.

There are independant developers out there who probably wouldn't be around anymore if it weren't for Steam. Introversion Software comes to mind as a good example of this, as Steam has prevented them from going under not once, not twice, but three times by now.

Also, Steam has made some games more accessible that would have had a severely limited releases otherwise. X3: Terran Conflict and S.T.A.L.K.E.R.: Call of Pripyat are a couple of my favorites that would have been a far more difficult for me to get a hold of on release day if weren't for Steam.
DRM = Digital rights management. (AKA copy protection)

Online activation = DRM
Steam = Online activation (endlessly repeatable most often) = DRM
Having to run a game every time it updates on steam in order to enable offline mode is increasingly irritating the more games I get and want to play on my laptop. = DRM
World of Warcraft log in = DRM (When the servers shut down there is no more game.)
Simple disc check = Simple DRM
Starcraft II log in to battle.net = DRM (After every patch you have to log in to activate your offline mode.)

GOG = Download once, make unlimited copies to all your computers and external hard drives. Burn them to CD/DVD. Bury the copies in a time capsule. When GOG dies you will still be able to install and play them. = NOT DRM

GOG died for a while. During that time I was dissapointed in that I couldn't buy more games and that I missed the chance to get Age of Wonders. But I was happy because I knew that the games would still work.

GOG games have less DRM than a t-shirt you'd buy at walmart. At walmart they have little electo-tags on them. GOG games have nothing.

When you download a game at GOG. Hit SAVE instead of RUN.

I have all 42 of my GOG games in individual files with thier extras in a master file on my PC, laptop, netbook, old 500gb external hard drive, and my new 1tb hard drive. If I have a fire or robbery, one of them will likely survive. That, my friends, is the opposite of DRM.

(Steps down from the podium. Rant over. Back to being civil.)
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fisk0: Steam in itself isn't DRM, but it has DRM functionality that is utilized by many games. I think Static had a lot of points which you didn't really address.
Once Steam has downloaded a game, it is on your computer, and if the game does not use any third party DRM or is one of those that checks Steam for authentication (which are not every game on Steam - mostly it's the Valve and Steamworks titles, but obviously many other games - still, not all of them), you can copy the game folder to any computer or run the game without Steam.
Steam doesn't give you an installer in most cases though (at times there is a subfolder in the game folder containing all the things that you need to install to get the game working), so those games that require changes to the registry or installing of various codecs and system files are going to be harder to get running, and will require a lot of manual copying of files to their right locations and registry editing - but it's certainly not impossible or something that you'd need to use third party cracks or something to fix.
Almost all the old classics on Steam use a standard Dosbox setup, with no DRM whatsoever, many indie title don't use any DRM either.
The only thing Steam does in those cases is to obscure the location of your game files, but they can easily be found and copied, just go to where you installed steam (usually c:\program files (x86)\steam, and then go to the \steamapps\common subfolder and you'll see the folders for all the games you have installed, in many cases you won't have to do anything but to copy those game folders to another computer and run the game executable within, very few of the games made before 2005 or so check for a running Steam client and will happily start without any trace of Steam on the computer.
In many cases this isn't too different from how GOG works - once you've got the game downloaded you can do whatever you want with it, if the service suddenly shuts down without you having the files - you're screwed.
The people behind Steam have on multiple occasions said that Steam wouldn't just suddenly seize to exist, they say the would give advance warning and unlock the games that require steam authentication to run.
We obviously only have their word on that, there's no mention of that in the TOS.
I've actually never come across a game that hasn't had the steam drm wrapper on it's executable. Even alot of the dosbox games you mentioned earlier are suspect. Whenever I attempt to run a game distributed through steam, it crashes complaining about not being able to find steam if you don't have it running. There was a big debacle about that a few years back where steam was adding their drm wrapper to a dosbox executable and some people thought this was going against the gpl license that dosbox had (long story short... they added the gpl license into a text file in the folder and everyone was happy)

I have to admit I've heard of some indie games not having the steam drm on them, but never figured out which ones they were. Do you know of any games that actually lack the steam drm even when distributed through their service? I'm curious now.

I think the number titles out there on steam that don't use their drm is almost nil.
"Yes, but if GOG breaks, you lose your games, if a CD breaks, you lose your games. FYI."

WRONG. If GOG breaks, you still have your backup copies... Forever. If a CD breaks... yes, you lose the game.

When you download a GOG game choose "SAVE" instead of "RUN".

Easy.