Valve founder Gabe Newell says that the Half-Life developer is indeed working on their next gaming engine, confirming earlier rumors spurred by references to 'Source 2' in their code.
Source 2 RSS
The Gamescom 2012 website has been update with the list of new releases expected to grace the show in Germany. Surprisingly, it's been discovered that Half-Life 3 is present on the updated list.
The Source engine was first introduced in June 2004, powering both Counter-Strike: Source and Half-Life 2. But references to its successor, currently known as Source 2, are appearing in script files.
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