it stops counting gametime hours when you stop playing....
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When you die.
Seriously: it usually is inconsistent because the online counter is different than your local/profile counter(They get update at different intervals).Normally it fixes itself in a day or two.
Also this has some interesting info I suppose: here
There was also a steamthread where you could post to help devs get to it better: here (it is now 2 years old)
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I just finished recording a full 15hours of gameplay of bully but steam didn't log the time played correctly (in-game stats said I have 15 hours).
And the weird fact is it is inconsistent, my online profile says 13.1 hours, steam client says 12 hours
Back to the main question, when does steam stop counting hours played?:
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