Digital distribution
Digital distribution also offers new structural possibilities for the whole video game industry, which, prior to the emergence of digital media as a relevant means of distribution, was usually built around the relationship of the video game developer, who produced the game, and the video game publisher, who financed and organized the distribution and sale. The heightened production costs in the early 2000s made many video game publishers avoid risks and led to the rejection of many smaller-scale game development projects. Gabe Newell, co-founder of Valve, the developer and intellectual property rights owner of Steam, described the disadvantages of physical retail distribution for smaller game developers as such: