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thetonestarr said:
Steam's numbers it shows are people who are actively logged into Steam. That's why it goes up and down throughout the day. If you're inactive in Steam for like twenty minutes, you go into "inactive" mode and you aren't included in those numbers.

actually that graph correlates to the night/day times in NA+EU  -  it's peak is early afternoon NA + late evening EU, it's low is nighttime NA + early morning EU

I doubt "inactivity" is a factor for that graph as it says it tracks "Steam users logged in"(right above the graph), in other words everybody that is connected to steam (no matter the status) is counted for that number.