Gabe Newell at Valve has confirmed that which we suspected pretty much all along, which is that Valve has been working on a new more advanced and enhanced version of its Source 2 engine. Newell claims that they have been “waiting for a game to roll it out with.”

The new engine is said to be much more than just an extension of Source. While we have heard Source 2 referred to before, the real question is what they will roll it out with. Actually, we believe as many do that this isn’t really much of a mystery at all; it is believed that Half-Life 3 is in the works and has been despite Valve not confirming its existence.

So, while confirmation of Source 2 isn’t what we had hoped for, we do think it is a step in the right direction toward hearing an announcement of a new game from Valve.