Question
I opened Steam, attempting to login... and it just sits there for minutes then finally gives me "Could not connect to Steam network". I know I have full internet connectivity.
It really seems like Steam (or parts of it) is down.
Answer
Steam usually makes downtime announcements on their forums.
Steam is under heavy load right now, because Valve pushed out the Team Fortress 2 Australian Christmas 2011 update 20 minutes ago, and managed to mess up a file in at least one of the server distributions.
Basically, servers can no longer detect if they're up to date and are flooding the content servers trying to update.
(The best part is, they're in denial that this is happening despite a good number of us reporting it on the dedicated server mailing lists)
Check more discussion of this question.
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