Valve Signed a Deal with Garry's Mod Creator!

Games made in the team's new sandbox tool can now be sold royalty-free on Steam.
Why is this absolute breaking news for gamers? Let me explain.
Successful companies sitting on billions, like Valve, deserve to be studied. Valve generates nearly $50 million in revenue per employee - far more than Google, Amazon, or Microsoft.
With Garry's Mod, Valve didn't just give the community one of the best sandbox tools for free - they let Garry Newman use assets from their games at no extra cost. This generosity helped him build Facepunch Studios and create hits like Rust.
Garry's Mod ran on the original Source engine. Its successor, s&box (built on Source 2), is set to launch on Steam on April 28, 2026. The new deal with Valve means creators can export their s&box projects as standalone games and sell them on Steam without paying any royalties to Facepunch or Valve (beyond standard Steam fees).
One reason Gabe Newell (and Valve) not only survives but thrives - proving the gaming industry is healthier than many think - is that he believes in building up other builders. In return, Valve still rakes in enormous profits with an efficiency most CEOs can only dream of.