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This is true and public knowledge though as I said (details seen here in the “Steam Key Rules and Guidelines” section), if anything Valve is giving devs a lot of leeway by allowing them to do that at all, not only are they giving up their 30% cut but are also then distributing and committing to updating those copies of the game for free
Correct, the entire concept of physically backed digital lending is being threatened, and many physical libraries contracted with IA to digitize their books and then facilitate digitally lending their physical copies to their patrons