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I'm installing Steam on my virtual machine as well as installing on my Ubuntu 10.10. Which do you think will run better?

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Wine. Team Fortress 2 works just fine there.
Look here for an instruction how to make it work nicely.

Virtual machines stink for games.

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Tf2 and steam are now on Linux, don't use Wine. I tried it and Tf2 works awesome on linux (on a laptop).

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The Steam client will perform well in both a virtual machine and in Wine. Games are a different story however. Team Fortress 2 will not work in a virtual machine. I have been able to get it working in Wine in the past, but the time it took to load the maps was at least 5 minutes.

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"Team Fortress 2 will not work in a virtual machine." Care to back this up? I've played TF2 in a VM before. – Arda Xi Aug 28 '11 at 12:10

Wine is the best option, Team Fortress 2 has known issues running in VMs and people that I have seen being able to run it have a lot of graphic issues. Wine works reasonably well with some Steam games but as Thomas said, it is SLOW. Although map loading in TF2 is known to be slow Wine just makes it even worse. For games such as Portal (the first one) and a couple of other older titles this works just fine but if you have a lot of newer titles I wouldn't recommend it.

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TF2 is literally just as old as Portal. They were released together. – Arda Xi Aug 28 '11 at 12:10
Yes I know but I have had more issues with TF2 under wine than with Portal. – Jesus Ramos Aug 28 '11 at 18:27

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