Of course, when the game finally came out to rave reviews, all was forgiven.
The Source engine is also licensed to other games. If the code is public, other engines could copy their features.
Also it is very annoying to re-secure all your computers after you have been breached. Every single person has to change their password and you don't know what backdoors the guy has installed without a full wipe sometimes.
Also, can't say I buy the hypothetical piracy cost. Does anyone have any examples of other engines copying Source features from the source code?
I think the suggestion was that the time taken to secure their networks shouldn't be counted as "damages", just something that needed to be done regardless.
My point is that re-securing their network does not seems like a financial damage to me. If they had known about their vulnerability beforehand, I'm sure they would've spent the time and money to fix it then.
Plus it's something they needed to do anyway.
Like other commenters said, they used him as a scapegoat; he did zero damage except make poor ol' Gabe worry.
Also, who else had access to their network? This kid getting caught may have saved Valve from other breaches...
Seems more likely that it was a convenient excuse.
Gosh, Valve must hire great PR. I had completely forgotten their overt evil actions around this incident.
If the hackers would have the source, they would not even need to reverse engineer the engine to build their aimbots/wallhacks.
[1] http://www.bluesnews.com/cgi-bin/finger.pl?id=1&time=1999122...