Gabe Newell Reddit AMA

Q: What is the status of Half Life 3/Half Life 2 Episode 3? Is Valve still working on any fully-fledged single player games? An unidentified anonymous source at Valve has said that Half Life 3 has been cancelled. Is that source legitimate?

A: The number 3 must not be said. Yes. I personally believe all unidentified anonymous sources on the Internet.