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I have no issue with backlogs, been cutting down on mine for the past few years actually.
1) Impulse Purchasing Control - Wishlist games you're very interested in and think you would likely want to play instead of impulse-buying them.
That's what I do, for the most part. And, you'll get notices when they go on sale, etc, so you won't be tempted to impulse-buy when they finally get a deep discount. You'll still have a "List," too, that you can glance over to remind yourself of those games you wanted to play, without having to buy them and stick them in your library for a "rainy day."
Lastly - Wishlisting a game truly does help the developer/publisher push their game up in the algorithm. So, if you're buying to "support the devs" then Wishlisting it s a very good alternative.
2) I don't "manage" my Library in any way. I don't have "hundreds" of titles, but I do have a good many. Most of them are older games or games I already own that I just wanted Steam versions for. Some are games I play on console, too. A few odd ones are impulse buys during deep sales, kind of like bulk/package deals and the like. If I'm looking for something to inspire me to play it, I'll scroll through the alphabetical list. (I have some software/apps I bought through Steam, too, but those are in their own tab.)
Might even get a nice discount later.
Best course of action is simple. Stop buying.
My backlog is infinite, even when I finish the game, do all the achievements, did a few speedruns and discovered a few glitches there's still something that I can do in this game so I could come back to this game even the next day, but I'm not gonna do that because I don't live forever, and there are other games that need playing, I'm pretty used to this feeling of never ending playing. I deal it in various ways, sometimes playing games from genres I know least about, sometimes playing my favorite games, sometimes playing games just to complete achievements, sometimes playing games that I will think will be my favorite.
Sticking to games that you already know seems to be a pattern for a lot of peeps, I have the same with games and music, it seems to happen with age.
You probably lack resolve or a good reason to actually play games, this itself is a problem, also both of options that you wrote are not exclusive, you don't have to choose, surely it would be good if there was an actual good reason behind a choice.
You need to take it that way.
If you haven’t completed a game to the end or haven’t started this game at all, so much the worse for that game, but not for you. :)) put it aside and look at other games.
The main thing is that you feel comfortable.
i install game
i play game until i finish or get incredibly bored
i uninstall game
i repeat
I've been waiting a window of opportunity to arrive in time before you've posted this thread.
So here's how it works:
My strategy is......... absolutely nothing
anyways, I just put all the games I care about in one pile, sort by genre or franchise, very simple