Steam Introduces Player Broadcasting

Look out, Twitch – Valve has announced that Steam will now support broadcasting with no additional software required.
Players will now be able to watch friends play any game on Steam by selecting “Watch Game” from their profile or friends list. Gamers will be able to select privacy settings for their streaming, which is automatic, as well, allowing only requests from friends to allowing anyone publicly to watch the game stream. The service is currently in beta on the Steam Client.
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