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https://partner.steamgames.com/doc/features/multiplayer/steamdatagramrelay
The game devs simply have to implement it. It's possible Steam might expand this feature to provide LAN services, but it's unlikely, considering it could be abused to transfer illegal traffic over their network if it was too generic.
Fair enough.
Valve isn't a charity.
It's a company aiming to make as much profit as possible.
But what is in it for Valve for offering that infrastructure as a service? Does it entail more sales? How would Valve cover the additional traffic costs that such service would entail? Some older games, especially those intended for LAN play, actually didn't use traffic efficient datagrams, easily eating into the hundreds of Kilobytes per second or even Megabytes. For you as a single player this number seems small, but it becomes exponentially large the more players make use of it.
I don't see a LAN game consuming more bandwidth than let's say already existing Remote Play feature. And a virtual lan would obviously come with bandwidth/user limitations (which in turn can also be monetised).
As for monetary worth. Not every feature has to bring direct profit. Case in point Remote Play mentioned above. One could argue it acts to promote couch multiplayer games, however you could also argue that nothing prevents most such games from having network multiplayer other than the difficulty associated with implementing it. Virtual network would be akin to a middle ground between developers having to rely on Remote Play and having to implement matchmaking and host their own servers.
Why is this important?
There’s a clear demand: Software like Hamachi, Radmin VPN, and others are widely used because many players enjoy older games or titles that rely on LAN.
Steam already has the infrastructure: Expanding tools like Remote Play Together or peer-to-peer networking into a Virtual LAN service seems like a logical evolution of what Steam offers.
It supports legacy and indie games: Many older or indie games don’t have matchmaking or online multiplayer, but a Virtual LAN would give them new life.
Revenue potential: While it may not directly generate revenue, such a feature could increase purchases of legacy games and strengthen Steam’s community appeal.
Concerns about traffic costs or potential abuse could be managed with reasonable user limits or restrictions tied to Steam accounts. Additionally, the bandwidth required for this would likely be similar to Remote Play Together, which already handles higher data demands effectively.
This feature could enhance multiplayer gaming on Steam, encourage more game purchases, and make the platform even more appealing for players worldwide.