The Shareware Age
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Shareware authors would release complete versions of their programs for free, uploading them to popular Bulletin Board Systems (from where they would be picked up by mail order companies - being sent parcels of floppies was still the preferred option for the majority of users who weren't sold on slow, expensive WarGames-style modems). If you obtained the program, tried it out and found it agreeable, you were encouraged to send a donation to the developer. In return you might receive product support and updates, additional programs, source code, or perhaps just the warm fuzzy glow of having supported the underdog.I look back at the modem/BBS days fondly. Maybe my WWIV BBS is still out there, somewhere :).
While this infrastructure may not have been far removed from the catalogues used by 19th Century homesteaders to order feed, furniture and wives, the appetite for affordable PC software was so great that users embraced the concept immediately and shareware authors found a steady trickle of cheques coming in. A few programs became very successful and sparked a gold-rush among bedroom coders much like the current brouhaha surrounding the iPhone.
At first shareware vendors viewed games as a sideshow to the main event - an added bonus for people shopping for desktop publishing and book-keeping applications rather than a money-spinner in their own right. The games disks they offered (given evocative names like "Arcade Games 1?) collected together tiny, unofficial versions of golden age coin-ops (Space Invaders, Centipede, Pac-Man, Donkey Kong, Pengo) or mainframe games (ADVENT, SpaceWar, Nethack, Star Trek). Most of these were developed by hobbyists (or in a few cases as promotional items for tech companies) and few made anything more than half-hearted solicitations for payment.