Gabe Newell reveals that Half-Life 2: Episode 3 didn't happen because he felt 'stuck'.
According to Newell, simply advancing the plot was a way to evade the situation.
Recently, Gabe Newell, co-founder of Valve, addressed the long-awaited Half-Life 2: Episode 3, revealing that the project did not materialize due to what he describes as a "personal failure." In a two-hour documentary released alongside the 20th anniversary update of Half-Life 2, Newell reflected on the reasons behind the lack of progress in the saga. He stated that he did not want to fall into the complacency of advancing the narrative without a clear goal, asserting that while players are interested in the story, simply moving forward to tell what comes next was not a sufficient justification to continue with Episode 3.
Newell admitted that he felt stuck regarding this, unable to understand how the release of Episode 3 could offer significant advancement. Despite this, Valve considered several ideas for the game, including a "Freeze Gun" that would allow players to create temporary shapes to cross obstacles and form barriers. David Speyrer, an engineer at Valve, also mentioned “blob” enemies that could move through grates or split into smaller versions.
However, both Speyrer and other Valve employees agreed that they failed to generate concepts that justified the development of a new title in the franchise. This has been amplified by what one of the level designers referred to as "unchecked growth," referring to how a project can extend beyond its initial plans. Additionally, the company was interested in starting to work on the Source 2 engine, which powers the virtual reality prequel, Half-Life: Alyx.
Aside from creative blockages, it seems that Valve has more urgent priorities as it continues to explore the possibilities offered by the Half-Life saga, which Newell considers a platform or even a complete industry in itself.