Five Years of ‘Alyx’: What’s Next for Valve in the VR World?

Half a decade has passed since Half-Life: Alyx set a new benchmark for virtual reality gaming, and Valve, while silent, continues to be a pivotal player in the industry. Without making much noise, the company has been pushing VR’s evolution with consistent updates to SteamVR, integration with standalone headsets like the Quest, and rumors of upcoming hardware and games. As we cross this five-year milestone since Alyx’s launch, a pressing question remains: Is Valve still committed to VR, or is it gradually stepping back from a realm it revolutionized? Let’s delve into what we know.

Time sure flies; it feels like Half-Life: Alyx was released just a year or two ago, yet here we are marking its fifth anniversary, thanks in no small part to a certain global pandemic that seemed to warp our sense of time. The pandemic almost delayed the game’s release, which happened in March 2020, coinciding with the start of widespread lockdowns across the United States. Many industries faced abrupt disruptions, forcing those who could work remotely to quickly adapt to this new normal.

Valve, the creative force behind Half-Life: Alyx, was among those that had to pivot swiftly. Had those lockdowns happened even a few weeks earlier, the game’s release might have been postponed. In fact, the pandemic caused Valve to cancel its sole press preview event for Alyx. Nevertheless, the game successfully hit its release date of March 23.

Half-Life: Alyx has earned accolades not just as a top-notch VR game but also among the best in the Half-Life series, and even one of the greatest games of all time. Five years on, it ranks 24th on Steam250’s list of top-rated games across the platform.

But Valve’s contributions to VR extend beyond a single, landmark game. Its Valve Index headset has long been a leading choice for PC VR, while Steam’s robust VR capabilities have kept the entire PC VR ecosystem thriving these past five years.

Despite shaping the VR landscape so significantly, Valve has been notably reticent about future developments in the field. There have been no significant announcements regarding new VR games or headsets, so what is Valve’s next VR move, if any? Here’s what we currently know.

Firstly, it’s important to recognize that SteamVR has been, and remains, the cornerstone platform for PC VR. Valve has rolled out gradual yet impactful updates over the years. A major update arrived unexpectedly at the end of 2023 with the launch of the Steam Link app for Quest headsets, which allowed for seamless wireless play of SteamVR games from a PC.

Valve seems far from finished with Steam Link. New datamined information suggests the company is expanding its reach to support more standalone headsets, such as HTC’s Vive Focus and Bytedance’s Pico headsets.

Additionally, it appears Valve is exploring more ways to enhance wireless PC VR capabilities. Some recent software findings hint at a “SteamVR Link Dongle,” likely a USB device aimed at creating a dedicated wireless connection between a PC and the headset.

Currently, using Steam Link requires a headset to interface with a router, which then links to the PC. While this can work well if you’re near the router, it can lead to quality issues like stutters or pixelation for those with weaker setups or who desire the highest bandwidth possible.

If it functions as anticipated, the SteamVR Link Dongle would enable a direct connection between PC and headset, eliminating the router from the equation and allowing Valve to optimize the VR experience. Insights from datamines suggest this gadget may utilize Wi-Fi 6E.

As for whether the SteamVR Link Dongle will support third-party headsets like the Quest or is being designed exclusively for Valve’s rumored ‘Deckard’ headset, remains to be seen.

So, what’s in the cards for Valve’s next VR headset?

After the Valve Index debuted in 2019, clues began to surface that hint toward a new headset in the works. Patents filed in 2020 hinted at various concepts, including a fully standalone headset and several ergonomic features.

While there hasn’t been an official word confirming new hardware, leaks and datamined reveals indicate that Valve hasn’t abandoned its plans. Just in recent months, a 3D model of new VR controllers, likely designed for Valve’s forthcoming headset, popped up in SteamVR’s files. This development rekindles hope that a new headset is indeed on Valve’s horizon.

The so-called Deckard, potentially branded as ‘Index 2,’ is expected to be a standalone device primarily streaming content from a SteamVR-enabled PC. This mirrors the experience currently available to Quest users via Steam Link.

The leaked Deckard controllers feature a design that incorporates a D-pad and four face-buttons, hinting that Valve could be targeting a dual-purpose device supporting both immersive VR games and traditional flatscreen games on a large virtual display.

Valve’s SteamVR platform already allows playing flatscreen games on a massive virtual screen, but the current VR controllers don’t adequately mimic standard gamepad controls. With Deckard’s more traditional controller layout, switching between VR and flatscreen games could become much more convenient.

Further fueling speculation, a source with a track record for accurate Valve predictions claims the next headset could launch in 2025 priced at around $1,200.

Although we can’t independently verify those claims, experienced dataminer Brad Lynch recently uncovered “Deckard EV2” references in SteamVR, suggesting the headset is advancing through development stages. Valve’s Steam Deck OLED reached EV2 before moving to production, so this could hint progress.

What about Valve’s next big VR game?

When Half-Life: Alyx premiered in early 2020, it was met with widespread acclaim. Five years down the line, it remains a benchmark for VR gaming excellence. The question, however, is whether Valve was satisfied with its commercial performance in light of the resources invested in its creation.

We don’t have a clear answer on whether Valve is working on another VR game of Alyx’s scale, but there are intriguing bits worth considering.

A Valve insider recently suggested that the company is nearing completion on some games or demos ready for release alongside Deckard. Tyler McVicker, another renowned Valve leaker who previously unveiled critical details about Half-Life: Alyx, mentioned finding evidence of a new VR game under development along with the Deckard headset.

McVicker speculates that the next installment in the Half-Life series might be an asymmetric co-op game where one person plays on PC and the other in VR. In this scenario, Gordon Freeman would be the PC character while Alyx Vance would feature in the VR dimension, fostering interactive storytelling with cooperative mechanics.

Could Valve be envisioning this game as a way to integrate its new hardware initiatives, the Steam Deck and Deckard?

Valve is keeping mum on both new VR games and headset releases for now. When reached for comment regarding their future VR roadmap, a spokesperson revealed, “We don’t have anything new to share right now but… we’ve really enjoyed seeing all the cool experiences that folks have created and uploaded to the Half-Life: Alyx Workshop.”

Understanding Valve helps contextualize these developments. The company operates with a unique ‘flat’ management structure, unlike any other in its league. Employees enjoy significant autonomy in choosing and creating projects, fostering a passion-driven work ethos.

As detailed in the Valve Employee Handbook, if an employee cannot rally support for a project, it often doesn’t progress. Conversely, when a project takes off, the team behind it genuinely believes in its potential. Coupled with Valve’s ability to attract top-tier talent, this approach allows the company to consistently deliver extraordinary outcomes.

Valve might not be unveiling new headsets or games annually, but its continuous enhancements to SteamVR, along with subtle signs of ongoing work, suggest that there’s still commitment to advancing VR from within the company.