Valve admits working on new gaming engine

But no word on Half-Life 3 yet...

Valve head-honcho Gabe Newell has confirmed in an interview that Valve are working on a new game engine

Newall confirmed that the new engine will be exactly that, a new engine and not a refined version of the company's current Source video engine.

Speaking to assembled questioners from, who had gathered to wish him a happy 50th birthday, Newell said: "We've been working on new engine stuff for a while". Then: "We're just waiting for a game to roll it out with".

Unfortunately, he didn't go so far as to name said game as the mythical Half-Life 3 - the rumoured continuation of the company's most famous franchise.

Plenty of internet speculation is growing on Half-Life 3 and considering the revolution that was Half-Life 2, it's entirely likely Valve has been hard at work on Source 2 and Half-Life 3 for some time now.

Got any insider whisperings on anything Half-Life 3 you're keen to share? Let us know in the comments box below.