Valve's Gabe Newell seems to have revealed what was long suspected by many, that the studio are working on the Source 2 engine.
At a recent birthday event, Newell was asked whether the company were working on a new engine, to which Newell replied: "We've been working on Valve's new engine stuff for a while, we're probably just waiting for a game to roll it out with."
Then he was asked: "Is it going to be more than just an extension to Source? Is it an entirely new engine?"
Newell then confirmed: "Yeah!"
It's not the first time we've heard things about Source 2, after code was uncovered in files in the recently released Source Filmaker.
Also mentioned in the video is a title under development using the new engine called Ricochet 2, which many think might be another name for Half-Life 3. We'll have to wait and see on that one, but you can't blame people - us included - for keeping their fingers crossed.