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Well yeah, Steam isn't a free for all, you can't generally buy one game and share it with two or more people and run it multiple times.
Get your niece her own Steam account and her own copy of the game. Problem solved. That's by design. It's intentional. It's not going to change. And Valheim is $20.
Yes I bought the game with my account, I own both computers, I have one account, I use it to play games in two separate rooms of the house on two separate devices.
One for local multiplayer and controller supported games with Steam Big Picture, which was literally what Steam Big Picture was advertised for in it's launched videos, and another in my bedroom for single player games or games with mouse and keyboard.
So to be clear, in order to play Valheim locally under the Same Roof using a Local Area Network, I literally have to create a separate account, and buy separate copies of the game?
She doesn't have one and it would be very inconvenient to have to sign out and sign into multiple accounts on my living room PC, since it's set up for controller.
I guess I'll just have to look for alternatives to Steam if I want to play LAN, and have Non-Steam copies launched through steam in one room.
Creating and managing separate accounts with Steam is unwieldy, especially when you want to avoid using a mouse and keyboard for the room you're using the separate account in.
I have a lot of local multiplayer games on this account and would constantly have to be switching back and forth being pestered with annoying security checks that require me to use my email.
And if I family shared all the local games it won't allow family sharing of DLC and it wouldn't keep our progress so that would suck.
The answer to all your questions is yes. One license, one user, it's not a new thing. It's literally decades old. You may not have been aware of it for whatever reason, but one of the reasons why DRM is enforced nowadays is normal users like yourself tend to ignore terms of the license when left to your own devices.
Your inconvenience and unwillingness to hookup a keyboard to a system isn't really Valve's problem or Iron Gate AB's problem or Coffee Stain Publishing's problem. Your convenience isn't the only concern. And ultimately they want to be paid for their work and if two people want to play the game at the same time having two people cough up the price of the game isn't some great sin no matter how outraged they feel.
You hate the gaming industry. Most launchers and developers aren't going to enable you to do what you want to do. This isn't just a Valve thing.
Then Valve should allow me to own multiple copies of the same game so I can launch it twice from one account.
AND Valve should allow me to launch it twice from one account.
That or deal with multiple emails accounts and passwords and constant security checks having to continuously switch back and forth between accounts because VALVE has inadequate LAN support.
Then play old games on disc. Publishers couldn't enforce the license terms back then and now they can, sorry.
That's not anyone's problem to manage but your own. No reason Iron Gate AB should take a loss because you don't want to deal with accounts or keyboards.
Then don't play Valheim I guess, play a more convenient local multiplayer game.
Pretending account switching is an impossible burden isn't a very strong argument. And it's a little late to change the course of the industry because you've suddenly discovered you can't buy one game for two or more people.
Well, you're welcome to your opinion. Take it up with Valve. I'm just telling you what your options are. Whether or not you approve of them isn't going to change much I'm afraid.
Yes, a non-Steam version should generally work.
I just didn't have some program telling me I couldn't use multiple licences to play with people under the same roof.
No it's a problem for anyone who wants to play locally over LAN.
And it makes anyone suggesting that as a valid alternative to Local Multiplayer unreasonable.
I didn't say impossible, I said unwieldy and cumbersome, it's an unreasonable burden to force on customers.