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Steam, you see, is akin to giving you the game on disc. As such, if you only have one copy, only one person can play. Family sharing is not going to remove that specific limitation.
And while I'm at it, how did you bypass this Xbox limitation:
Please do tell, it could come in handy.
The system is working as intended.
It is not a method to play multiple copies of a game without paying for them.
If you and your kids want to play a game together, you need to have your kids make their own accounts and buy them their own copy of the game.
It's in the beta right now.
As said above, try the Steam Beta client as you can have access to the Steam Family Share Beta as well.
It allows playing of the same library, at the same time, though not the same game.
There are some other restriction as well that don't exist in the current Family Share you should be aware of, such as:
So it is a bit of a trade off, but in most cases, the cons won't really effect things if sharing with your family, in your own home.
Someone corrected me on part of it, in another thread. I may have misread or misunderstood the 1 year restriction, so I will post their comment here for the correction.
However, as mentioned by others, unless a game natively supports multiplayer on one license, expect that you need multiple licenses for simultaneous play.
In my limited experience, a single license for a game on a console tends to be higher than on Steam - not counting new AAA titles.
not being able to share paid dlc for free games still sucks though but finally be able to share free dlc for paid games is amazing
This new sharing is supper buggy and still needs improvments but its like the only good thing Valve has ever done so I will take it