The long-dormant dream of Half-Life 3 is not only alive but poised to be the flagship launch title for Valve's new Steam Machine hardware next year, according to a prominent industry insider. This claim emerges despite the game's conspicuous absence from recent showcases like The Game Awards 2025.
The Persistent Rumour Mill
For over a decade, Half-Life 3 has stood as one of gaming's ultimate 'holy grails', a sequel whispered about but never confirmed. However, the volume of rumours has intensified dramatically throughout 2025, particularly following the reveal of Valve's new Steam Machine console-PC hybrid. Last month, speculation reached fever pitch with claims an announcement was imminent, yet the year is closing without official word.
Speaking on the Insider Gaming podcast, editor Mike Straw revealed that Valve had employed a clever tactic to identify leakers: feeding different insiders varying dates for the game's reveal. All of those dates have now passed without event. Straw noted he did not report the date given to him due to a source's lack of total confidence, but emphasised the consistent message from his contacts.
A Launch Title Held Hostage by Price?
'Everything I have… everyone I’ve talked to, is still adamant this is a game that will be a launch title with the Steam Machine,' Straw stated. However, a significant hurdle may be delaying the official announcement: the final price of the hardware.
Straw claims that soaring memory chip costs have created uncertainty around the Steam Machine's retail price, which Valve has indicated will be closer to a high-end PC than a traditional console—likely well over the £500 mark of a PlayStation 5 or Switch 2. This indecision is reportedly holding back the announcement of both the hardware and its flagship game.
Valve has previously targeted a launch in Q1 2026 (before April), but Straw now speculates this could be pushed back. 'I’m starting to wonder if that hardware’s going to get pushed out,' he added.
Implications for the Gaming Landscape
Should the insider claims prove true, 2026 could witness an unprecedented clash of gaming titans, with Half-Life 3 potentially launching in the same year as the highly anticipated Grand Theft Auto VI. For PC gamers, the news comes with a crucial caveat: while Half-Life 3 is touted as a Steam Machine launch exclusive, it would still be available on Steam for other PC devices. Console versions, however, are considered very unlikely, at least at launch.
Straw's final word on the matter was unequivocal: 'At the end of the day, the game is real. There’s no denying it. It’s just when and not if at this point.' The gaming world now watches and waits, hoping the next chapter in Gordon Freeman's saga is finally on the horizon.
