In the last two months of 2025, rumours abounded that Valve was finally gearing up to announce Half-Life 3, but then November arrived, and then The Game Awards — which was a pipe dream anyway — and then the holidays. Nothing. Fears mounted that maybe it had been cancelled, though insiders claimed it had been delayed alongside the Steam Machine due to RAM shortages and price hikes (thank you, AI), while Dota 2 updates revealed that development was still chugging along.
Now, according to reputable insider and leaker Gabe Follower, it looks like Valve is finally approaching the finishing line at long last. "HLX development has reached a point where it no longer requires all hands on deck," he explained in a new YouTube video, breaking down some of the most recent discoveries — such as realistic weapon ballistics, NPC mood systems, crowd optimisation, dynamic gravity effects, and more.
'HLX' is the working codename for Half-Life 3. It was also the codename for the Half-Life 2 episodes, so any rumours that it stands for 'Xen' are patently false.
Valve reporter and leaker Tyler McVicker likewise claimed last year that a 2026 announcement "is likely", so after a year of polishing...
