
CVG: Valve has promised that it is spending a "tremendous amount of time" improving its Source Engine SDK.
Gabe Newell admitted that for both Valve and those who use its development tools, Source has become "painful" to use as it makes development difficult.
Half-Life and Portal writer Erik Wolpaw has detailed how his team has been using Generative AI for research and development at Valve.

Valve has responded to New York Attorney General Letitia James' lawsuit against the firm, stating it does not believe that lootboxes in its Counter-Strike 2, Dota 2, and Team Fortress 2 games unlawfully encourage minors to gamble, adding it was "disappointed" to see the action go ahead despite efforts to "educate" the NYAG about virtual items since "early 2023."
New Source engine is likely the reason for the extended delay on Half Life 3. Hopefully Valve coming out and making a statement on the engine itself means they are close to a bigger announcement.
I just want episode 3. :/
BUT I am excited about a new Source engine. The current engine has produced some fantastic games.
I don't want hl3 this year to many games to get through.. next year 12/25/2012 would be a perfect time!!
I rather they wait & perfect the masterpiece until it's ready & up to there standards. no rushing it!
source is still an amazing engine so source 2.0 will be crazy nice!!
I still say Portal 2 has some kinda new Source engine code built into it.
please, new half life valve.....I hope