how does Steam handle Unity3d game updates?
Can anyone shead some light.
Using Steam is my only option.
If you browse around the Steam submission site, you should be able to find some introductory information on this topic – in particular, they talk about uploading various “images” of your game’s files, which will be used to produce automatic updates.
This is a fairly common paradigm for patching tools, where the patcher itself views each update of the game as a standalone product, and manages the differences between them. It’s simple and avoids many of the pitfalls you might otherwise run into.
Version control suites used by developers usually use similar methods, actually
To get more information, you can submit your game to Steam and request access to inside information, including the Steamworks SDK and API.