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Yeah, I think that's the general idea. They are seperate instances of Steam that could be signed into different accounts. So yeah, if you're doing multiplayer of one game, each account would need to own it. That would be the exact same limitation at a LAN party anyway. This just lets you host said LAN party on a single beefy box, and use thin clients for each gamer, like an RPi4, a tablet or even an Apple/Android TV.