Half-Life 2 to be pulled from shelves

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A federal court lawsuit was originally filed by Valve in the US in August 2002 but, in a brief statement, Valve has just confirmed that "the parties have resolved their differences and the settlement provides for the dismissal of all claims and counterclaims".

As part of the settlement agreement, Vivendi will cease distribution of retail packaged versions of Valve's games from 31 August, opening the way for Valve to sell its games exclusively via its Steam download service.

Games affected by the agreement include Half-Life, Half-Life 2, Counter-Strike, Counter-Strike Condition Zero and Counter-Strike Source.

Cyber cafe operators that were licensed by Vivendi or Sierra Entertainment have also been notified that any licence agreement that may have granted rights to use Valve games in cyber cafes is terminated.

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