Why?
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Multi-device gaming: say you have two different gaming computers; if you share your Steam library between them, you don’t have to keep two separate libraries up-to-date.
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Easier to wipe Windows clean: by decoupling the Steam library from the computer, one can safely install Windows clean every once in a while without downloading games again.
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Steam library backups: My NAS has nightly backups, if anything happens, I don’t have to reinstall terabytes of games.
How?
Prerequisites: hardware
I have tried this project a couple times already.
The first time was a failure because the server had spinning drives in it. Sequential operations where quick enough, but random reads made it impossible to play.
I recently switched to SSDs though, so now randoms are fast enough that storage is no longer the bottleneck.
Prerequisites: network
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All links are 1Gbps, both devices are plugged into the same switch.
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A quick bench test shows links run at nominal speeds on both ends.
Instructions
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Follow this first guide to export a SMB shared folder.
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Follow this second guide to mount your shared folder on Windows.
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Follow this other guide to create a Steam library folder in your network drive and move your games one by one into it.
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Optionally, validate your games’ integrity.
Results
The good
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My PC only has a boot drive in it, with Steam and system utilities.
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Millisecond-paced games like CS:GO run fine.
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I haven’t noticed any increase in loading times or dropped frames.
The bad
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Requires a reliable network. I once tried Wi-Fi, it doesn’t work.
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Some anti-cheat software won’t allow games to run off network drives.
The ugly
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Setting it all up is complicated, if you haven’t done it before.
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If Steam boots faster than your PC gets network, it won’t recognize the missing Steam folder. A static network configuration solves this.
Games tested
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CS:GO had no issues. If you play on FACEIT though, their anti-cheat software won’t let you run it.
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PUBG doesn’t boot, unfortunately.
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Garry’s Mod and Rocket League work just fine.
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Keep Talking and Nobody Explodes works fine, haven’t tested VR.