Via Steam, Bethesda announced the Fallout 3 GOTY update 1.7.0.4 will not install Games for Windows Live for the game to work without any problems.
“Fallout 3: Game of the Year Edition has been updated and no longer installs Games for Windows Live dependencies. If Fallout 3 was previously installed on Steam, we suggest uninstalling and reinstalling the title,” says the post released today. “The title no longer requires Games for Windows Live and will now launch.”
Since the game’s launch on October 28, 2008, the title has relied on the Microsoft’s Games for Windows Live software for social features and achievements.
Though software development of GfWL has been discontinued, the service’s client software (included still in certain games) and its servers are still available and running.
Many developers started to discontinue the use of GfWL starting with Gotham City Impostors on August 31, 2012.
With the latest update, gamers won’t have any hassles playing Fallout 3 GOTY, currently available for $7.99 USD at Steam.
[Source]: Steam: Fallout 3: Game of the Year – Update 1.7.0.4 – [Archive].