Alyx Turns Five: Exploring Valve’s Next Steps in VR

Five years have slipped by since Half-Life: Alyx revolutionized VR gaming, and Valve remains a pivotal yet understated player in the industry. With little razzle-dazzle, the company has been influential in redefining the VR scene, thanks to regular updates to SteamVR, collaborations with standalone headsets such as the Quest, and tantalizing hints of forthcoming hardware and games. As we mark Alyx’s fifth anniversary, a pressing question emerges: Is Valve as committed to VR as ever, or are they subtly stepping back from the frontier they once pioneered? Here’s a look at what we’ve gleaned.

It’s amazing how a single global pandemic can warp our sense of time—just like that, Half-Life: Alyx turns five. For many, it feels like no more than two or three years have passed.

The pandemic almost derailed the game’s release. Half-Life: Alyx arrived in March 2020, right when the U.S. started enforcing stay-at-home orders to battle COVID-19. Countless businesses were thrown into chaos; those fortunate enough to operate remotely scrambled to maintain operations.

This chaos included Valve Software, the minds behind Half-Life: Alyx. Had lockdowns begun earlier, Valve admits their game launch could have faced major disruptions. They even had to cancel their sole press preview event for Alyx. Fortunately, the game successfully launched on March 23rd as planned.

Half-Life: Alyx has received accolades as not merely the pinnacle of VR gaming or Half-Life triumphs but stands among the greatest games ever. Five years on, it still occupies the 24th spot on Steam250’s top-rated titles on Steam.

Valve’s contributions extend beyond creating an iconic VR game. The ‘Index’ VR headset was long regarded as the leading choice for PC VR aficionados, and of course, Steam’s extensive VR support has been a cornerstone of the PC VR industry these past years.

Despite these impacts, Valve has remained quite reticent about its future plans for the VR sector. There’s been a conspicuous silence on any ground-breaking releases, like a new VR game or headset.

So, what’s Valve’s current VR trajectory—if one exists? Here’s what we’ve uncovered.

Valve’s Ongoing VR Projects

Don’t overlook SteamVR as the unrivaled king of PC VR platforms. Over the years, Valve has been quietly rolling out consistent updates. Toward the end of 2023, they pleasantly surprised many by releasing the Steam Link app for Quest, allowing for a more seamless wireless experience.

It seems Valve isn’t finished innovating with Steam Link. Datamining hints suggest expansion plans to add support for new technologies like HTC’s Vive Focus and Bytedance’s Pico headsets.

Moreover, Valve reportedly has further plans to optimize the wireless PC VR experience for standalone headsets. There’s mention of a "SteamVR Link Dongle," anticipated to be a USB device offering a direct wireless connection between a user’s PC and headset.

Currently, using Steam Link means connecting your headset via a router, then to the PC. This setup usually works if your router’s nearby, but long distances can lead to issues like stuttering or pixelation.

If the SteamVR Link Dongle performs as expected, it would establish a direct line between the PC and headset, omitting the router and ensuring a reliable wireless connection. Leaks indicate it may use Wi-Fi 6E technology.

The dongle’s compatibility with third-party headsets like Quest remains uncertain, leaving room for speculation it might be tailor-made for Valve’s anticipated ‘Deckard’ headset.

The Next Valve VR Headset

Following the 2019 release of the Index, whispers of a new Valve VR headset emerged with patents filed in 2020. These patents suggested standalone capabilities and innovative ergonomic designs.

Five years have passed, and while an official announcement remains elusive, the clues keep emerging through Valve’s channels and datamining. This steady trickle implies ongoing development on Valve Time™.

Just recently, unseen VR controller designs linked to Valve’s next headset surfaced in updated SteamVR files, rekindling hopes for new hardware and hinting at its potential features.

The ‘Deckard’ headset, potentially named ‘Index 2’, is speculated to be standalone, focusing on streaming SteamVR content from a PC. This mirrors what current Quest users experience with Steam Link.

The recently leaked controllers, carrying a familiar gamepad layout, suggest Valve could target both VR and flatscreen gaming via a virtual screen. SteamVR already offers flatscreen game support on virtual displays, but standard gamepad transitions remain cumbersome for most VR controllers.

By retaining a traditional gamepad design, the Deckard controllers could streamline transitions between VR and flatscreen experiences.

A recent leak hints at the Deckard headset reaching the market in 2025, potentially priced at $1,200, based on a credible source with a proven record on Valve projects.

These claims align with Brad Lynch, a trusted data analyst who unearthed new "Deckard EV2" references in SteamVR’s latest iteration. EV2 indicates a second Engineering Validation unit, suggesting proximity to production. Rumors of further prototypes—EV3 or EV4—suggest we aren’t far from an announcement, perhaps within the year.

What’s on the Gaming Horizon?

Half-Life: Alyx was met with universal praise upon its 2020 release. Its size and polish remain unmatched in VR gaming five years on. Despite its quality, Valve’s satisfaction with its commercial success is uncertain.

The trajectory of Valve producing another grand-scale VR game remains an open-ended question. Here’s what we’ve pieced together.

Recently, the same Valve source with information on the Deckard headset hinted that games or demos “already done” may soon drop, specifically targeted for Deckard.

As with Tyler McVicker, a notable Valve dataminer who presciently flagged Half-Life: Alyx details before its launch, there’s belief Valve has another VR game in development alongside Deckard.

Given Valve’s rich pool of IPs, McVicker suggests a new VR game might spring from the Half-Life universe. The idea? An asymmetric co-op experience where one player navigates as Gordon Freeman on PC, and another as Alyx Vance in VR.

This concept—bridging the Steam Deck and Deckard hardware—brings both iconic characters together, intertwining their narratives with cooperative elements.

As for Valve, they remain tight-lipped about new headsets or VR games. When approached about future VR plans on the anniversary of Half-Life: Alyx, a Valve spokesperson noted, "We don’t have anything new to share right now; we’ve really enjoyed seeing all the cool experiences that folks have created and uploaded to the Half-Life: Alyx Workshop."

Understanding Valve’s Unique Culture

Valve’s foundational structure provides crucial context. Unlike any similar-sized entity, Valve operates on a ‘flat’ hierarchy, granting employees substantial autonomy in choosing projects and inspiring collaboration among peers.

Per the Valve Employee Handbook, employees select endeavors they’re passionate about and rally others to join. Without mutual interest, projects stall.

This culture allows project groups to be fueled by genuine belief and commitment. Combined with the means to attract top-tier talent, Valve consistently exceeds expectations despite its comparatively small workforce.

Though new Valve headsets or VR games aren’t annual occurrences, their ongoing work with SteamVR and hints of developments indicate a dedicated contingent within Valve remains committed to advancing VR.