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So what is it good for?
There are quite a few games that have online play through a dedicated server. When those servers shut down there is no longer a way for people to play online. Steam has it's own servers but most games do not run through the Steam Servers when played online.
Hamachi and Tunngle allow you to connect to other players online through a games LAN (Local Area Network) connection. LAN would normally be used to play multiplayer on computers in the same household and does not usually connect to the internet. For those of us who love older games that no longer support online play it would be an awesome option.
Firstly, they don't allow it because Steam does not have this as an integrated tool. Secondly, they could easily make it only allowed for games that you own on Steam. Thus negating any piracy issues.
Anyway, what game on Steam requires but doesn't have the master server anymore? I'd like to know what to avoid.
I think you know what I meant by dedicated server. I was using lay terms so that just about anyone could understand what I meant. The term "Master Server" or what you meant by that term was primary server. No developer uses a single server for a game. They use multiple servers. A primary server would be the main server players would be funneled to.
There are quite a few games on steam that use servers to play online and some that have had their servers shut down. Either because the games are no longer supported or because the companies went out of business. A game like Sacred 2 was pulled from Steam because the company went under. A new company has brought it back to Steam but the servers have been shut down. Now there is no online play for the PC version. Hamachi, Tunngle and other similar programs allow people to play online using a games LAN connection. That is why I suggested that Steam create it's own LAN tunnel program.
Anyway, I know that there's hardly any a single master server. Still, you have to know the difference between a dedicated server (hosted on some PC, maybe on yours) and a master server (the main lobby/server browser system).
Officially adding the feature could be seen as a 'You can't do that but' kind of statement.
Out of context it's hard to see how this applies. I don't know in which part of the user agreement this is found but it seems to be referring to the Steam software itself. In which case it would not affect any sort of LAN portal.
What if someone wrote a program to be used on Steam and sold that program on Steam and it provided the ability to tunnel any LAN game? Seems like a good business idea.