Newell gave some background on Valve's projects from the last few years, like SteamVR and the Vive headset, explaining that the company was worried about the PC heading in the direction of an iPhone-esque closed ecosystem. "You can see that Microsoft was like, wow, how can we make Windows more like that? Or Zuckerberg is saying, 'well I tried to compete in the phones, I got my ass kicked, so I'm going to create this new thing, VR, which will allow me to recreate the kind of closed, high margin ecosystem that Apple's done.' And that really started to worry us, because we thought that the strength of the PC is about its openness … So we started to make some investments to offset that."

Those investments, Newell said, meant they hadn't released a new game since Dota 2—but that work wasn't wasted time. "The positive thing about the Vive is, in addition to making sure that nobody created an iOS closed platform for it, was also that it gave us the opportunity to develop our in-house expertise in hardware design. Five years ago, we didn't have electrical engineers and people who know how to do robots. Now there's pretty much no project in the hardware space that we wouldn't be comfortable taking on. We can design chips if we need to, we can do industrial design, and so on. So that added to that."

With Valve's new hardware chops, it seems like we can expect more than new games from the company. "We've always been a little bit jealous of companies like Nintendo," Newell said. "When Miyamoto is sitting down and thinking about the next version of Zelda or Mario, he's thinking what is the controller going to look like, what sort of graphics and other capabilities. He can introduce new capabilities like motion input because he controls both of those things. And he can make the hardware look as good as possible because he's designing the software at the same time that's really going to take advantage of it. So that is something we've been jealous of, and that's something that you'll see us taking advantage of subsequently."