For RAGE, we’ll be using Steamworks for activation. You’ll simply need to be online once (per PC you’re using) to activate the game. Once the game is activated via Steamworks, you can take Steam into offline mode.

I can confirm that Skyrim will be using Steamworks. We'll have more details soon.

What is Steam and SteamWorks?
Steam is a Digital Distribution (DD) and Digital Rights Management (DRM) platform used to distribute, update and play games online. Its main purpose is to allow players to buy games online and download them directly to their PCs with the Steam client, but it's also used by games distributed on physical media, such as DVD discs. Games that use Steamworks, which includes Steam-activated physical DVD discs, are activated online using the Steam client, and can't be launched without the Steam client running alongside the game. Thus the Steam client is required for both physical DVD and digital installations; it will be installed automatically for DVD installations from the disc, and there is no difference in the resulting install whether Skyrim is purchased online through Steam or on physical DVD. See http://en.wikipedia.org/wiki/Steam_%28software%29 for more information.

Do I need Steam to run Skyrim on PC?
Yes. Skyrim is strictly tied to Steam for both physical retail DVD discs and online digital-only purchases. To play Skyrim, you launch the Steam client and then launch Skyrim from the Steam library, leaving the Steam client running in the background. Directly launching the Skyrim executable found in the Steam folder will also launch the Steam client, as Steam is hooked into the Skyrim executable.

Can I just run Skyrim without Steam running in the background?
No. The Steam client must be running to play Skyrim, and discussion on circumventing Steam by running Skyrim by any other means will not be allowed within these forums.

Do I need to be connected to the internet to activate Skyrim?
Yes. There is no such thing as offline activation.

Do I need to be connected to the internet to play Skyrim?
No. Steam is able to run in offline mode, meaning that you need to get online only once to activate Skyrim and install any required updates/patches, and don't need to be connected to the internet to play it. See https://support.steampowered.com/kb_article.php?ref=3160-AGCB-2555 for the official guide, and the last entry in this FAQ for more detailed instructions on how to set the Steam client to offline mode so that it can stay offline for a long time. The Steam client is often updated, and the offline mode is known to be still a little buggy nowadays, hence it is advisable follow the latter instructions to set the client in permanent offline mode once you have activated Skyrim if you need extended offline time, and regardless of any further Steam client updates.

I have preordered my physical DVD copy of Skyrim; how am I supposed to install it? Do I need to install the Steam client first?
No. What you're actually installing when you completely install Skyrim from the DVD is the Steam client itself (as long as you haven't installed Steam in your system yet), which will then automatically copy the required game files from the DVD to your hard drive. You'll be asked to enter your Steam account name and password to log onto Steam authentication servers, then setup will start. If you don't have a Steam account you'll be asked to register one before installing Skyrim. Note that some of the files may be pulled from the internet through the Steam client to complete the installation, rather than all being on the DVD.

I want to order the Collector's Edition of Skyrim, but I don't have an optical/DVD drive. Will I still be able to install it when it arrives?
Yes, as long as you have a broadband internet connection. You can activate the DVD key of any SteamWorks game, including Skyrim, in your Steam client and download and install it over the internet without ever needing the DVD at all.

I have purchased a copy of Skyrim through Direct2Drive, GamersGate or some other digital download portal, not a physical DVD version. Won't that be different from the Steam version? Will they be incompatible for modding?
No. There will be no difference nor incompatibility. Skyrim is exclusively on the Steam platform. These sites are selling Steam activation codes for Skyrim, similar to the SteamWorks DVD key. When you buy a code, you will activate it in your Steam client, which will then download and install Skyrim, just as if it was bought through Steam. So, there will be no difference from a version bought directly through Steam itself.

Where am I supposed to install Skyrim?
Any Steam game is always installed into the main Steam folder without prompting for install location. However, you may choose where to install the Steam client itself, which will determine the install location.

What if an update/patch comes out? May I just download the patch and install it, with the Steam client still set in offline mode?
No. There will be no manual updates or patches available for download anywhere; the only way to update Skyrim is to get online and let the Steam client download the updates for you. Then you will able to get back offline and play Skyrim as usual.

I'm on a slow/dial-up internet connection. Can I still activate Skyrim when I install from physical DVD disc? Will I be able to download required updates/patches?
Possibly. You will be able to activate Skyrim on a slow or dial-up connection. Steam activation data files are usually in the order of a few megabytes, so should only take a few minutes to download. However, at activation time it is required to install any required updates/patches.

Will I be able to play Skyrim as soon as it releases?
Yes. There will be more details on preloading Skyrim on Steam closer to release.

I have a question or concern about Steam, or DRM in general, that's not answered here.
Then you're encouraged to refer to the Unofficial Steam/DRM Discussion found in the http://www.gamesas.com/index.php?/forum/18-community-discussion/ forum or visit the http://store.steampowered.com/forums/.

Thanks to dAB for helping put together this FAQ

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Discussing or linking to P2P content within this forum is prohibited. Given the nature of these resources and their use with piracy, under no circumstances can they be linked to within our forums. Violations of these rules will result in a warning or account suspension.

Bittorrent links and discussion are prohibited within our forums, with exception to use of bittorrent links relating to modded content (from clean torrents). Violations relating to bittorrent content will result in a warning/suspension. Similarly, we do not allow discussion methods of circumventing the Steam check or of Cracks that violate the terms of a game's EULA. Open admission to pirating copyrighted materials will result in an account ban.

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Similarly, posts admitting to drug use, violence, or other illegal activities are not tolerated within the forums. This includes indicating knowledge of or being witness to unreported illegal activities. Such knowledge should be reported to the authorities not posted on a forum.

It seems like Bethesda's in house publishing arm should have some say in all of this mess .

Umm, it was their choice in the first place. Bethesda is responsible for their own patches, Steam is the distribution platform.

Because of your idiotic methods to try to prevent piracy with DRM..you have now lost a loyal customer. I won't purchase another Bethesda game or anything related (Zenimax) again. I am very disappointed..not that they care.

I must point out though it isn't just about piracy why devs use Steam. And i know for a fact as well as everyone else here that Steam games doesn't prevent piracy and it wont matter what measures they put in place they will never stop it. Perhaps if they had no DRM the piracy wouldn't be a big problem because you wouldn't have any challengers for the hackers. Thats what it is about with the hackers it is a challenge for them to break the game. And if you look at what UBI did when they made gamers play single player games over the net and UBI thought this was full proof but it wasn't and the hackers broke the games. Then you have to look at how much money they put in for these anti piracy measures that don't work the money would be better spent on game development.

I was reading thread 24 with great interest when I started wondering when, where and how Steam acquired all of the rights to Skyrim. Did Valve buy Bethesda so they could dictate what goes into patches or is steam's exclusive contract so iron clad that Bethesda is scared of them? Does Bethesda still retain any rights as a developer or do they even own Skyrim anymore? Please enlighten me, it seems like I have missed something somewhere. It seems like Bethesda's in house publishing arm should have some say in all of this mess .

you expressly grant Valve the complete and irrevocable right to use, reproduce, modify, create derivative works from, distribute, transmit, broadcast, and otherwise communicate, and publicly display and perform the User Generated Information and derivative works thereof in any form, anywhere, with or without attribution to you, and without any notice or compensation to you of any kind.

The big reason for DRM is to control the flow of money.

You missed nothing. Steam offers a couple of features for developers. If the developers want to use them or not is their own decision.
So when Bethesda modifies the Skyrim.exe or change the DRM or whatever else, it is their own decision.
Steam just offers different models and methods, but they do not force developers to use them.

So to sum it up:
Steam is a service, the customer (e.g. Bethesda) decides what to use and pays for that.
If you're unhappy about some restrictions (or so) than you have to blame Bethesda and not Steam/Valve.

As a long time fan and player of the Elderscrolls series of games, I am deeply saddened that Bethesda decided to use DRM protection thru Steam as a method to act against piracy. I myself usually purchase multiple copies of each Bethesda game out of pure dedication and love for the quality of the product. NO MORE!!! I am furious with the idea that I no longer have FULL CONTROL over something I purchased. The idea that an update can be pushed to my game without my consent resulting in breaking my games executable is UNACCEPTABLE! It's actions like these that actually motivate consumers to engage in piracy. Any time we as consumers feel cheated or ripped off, it makes us think twice about paying for something again. I will NEVER buy a Bethesda product again unless Bethesda provides a local install version of their game. LONG LIVE LOCAL PC GAMING!!!!

DOWN WITH THE CLOUD!!!!!!

I also believe a developer would be foolish not to at least try and protect their product and IP.

Sream model is the future of PC games. Many will not like this, but if you want the PC platform to continue to get AAA titles that have the budget and resources to do it correctly then developers and publishers have to find a way to reach a wider audience. Steam and its model allows that.

DRM has its problems but until piracy, DRM issues, accessibility, and hardware challenges are fixed, the PC market will continue to falter.

Like any good consumer level software, Steam is set to auto-update. You can turn this off for individual games by right click - properties - update tab.

Hate to say this, but you *cannot* turn off the auto-update. At least you can only turn it off for 15 minutes or so, which it will then reset to auto-update. So unless you want to stay in offline mode, you basically have to keep yours games up to date.

What? I've had a bunch of games on disable updates for about a year now. The setting sometimes resets when Steam itself updates, but then you just pause the updates and change it back.

What? I've had a bunch of games on disable updates for about a year now. The setting sometimes resets when Steam itself updates, but then you just pause the updates and change it back.

You have to manually catch it? What happens if you are not at your computer when this occurs?

I must have disabled Skyrim's auto-update at least a dozen times in the first week after it came out. Unfortunately it still applied an unpleasant update. Steam should just remove that function, because it doesn't do what it says, or at least there is little point in setting it.

Are you running Steam as an administrator?

Like any good consumer level software, Steam is set to auto-update. You can turn this off for individual games by right click - properties - update tab.