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Gamers didn't leave the PC because they thought it was a dead platform, they left it because the PC is difficult compared to a console. You have to spend more money, you have to keep it up to date, and a whole bunch of shit can happen that can screw it up. Steam fixes a lot of this. Windows 7 fixes it some more. Once Valve can ink deals with NVidia and all the other hardware makers they can make Steam keep your system up to date for you (they already do this with ATI), so that will help even more. This doesn't fix everything but it helps.
Valve does indeed deserve all of the success they get from this. And it's a natural monopoly - they aren't doing anything anticompetitive and they're just flat outdoing everyone else. This is why companies use Steamworks.
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