You don't have to deal with physical media (discs), meaning you'll never lose your disc or have it break. With Steam, the game is in your account for good. If you delete the files (or your PC explodes), you just download them again. Let's say you go on holiday and there's a PC where you are, you can download Steam, login and download any of the games on your Steam account and play them.
It's convenient. You don't need to go to the store or interact with other human beings! And if you usually buy through online stores, well, you can download a game on Steam in a few hours if you net's pretty good, vs days and days of waiting for an online delivery.
Early release dates. Not only are new games sometimes released on Steam before they're in stores, they're usually released to the entire world. .co.uk is British, right? I've heard you guys are a few days behind us for release dates, so buying on Steam would get you new games earlier.
It's greener. You can reduce the negative impact you're making on the environment by not encouraging the manufacturing of plastic boxes or the printing of manuals.
Games auto-update. A 500mb patch just came out? Ugh. But despair not! Steam games auto-update (if you want them to), so maybe it'll download while you're at work or school and be ready for you when you get home.
Community tools. There's a built-in friend list and IM/voice-chat thing. With the Steam overlay you can run the Steam IM stuff at the same time as your Steam games, even if you're running it fullscreen. There are also groups and stuff. It's a great tool for social networking.
But there are downsides to Steam.
Firstly, you're British, yeah? Well, the pound is way down against the dollar right now and everything on Steam is charged in dollars. Left 4 Dead would cost you about 35 pounds with the conversion rate and British taxes and the pound might continue to drop against the dollar. Stuff could get very expensive for you.
Secondly, the software is temperamental. It doesn't work well for some people, or at all. It crashes, games don't run properly, offline mode doesn't work and you might even get banned from Valve's anti-cheat system for no reason, effectively banning you from playing Valve's online games.
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