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

Five years have passed since Half-Life: Alyx revolutionized VR gaming, and in that time, Valve has remained a subtly powerful player in the industry. Without much fanfare, the company continues to influence the VR realm through consistent updates to SteamVR, collaborations with standalone headsets like the Quest, and rumors of new hardware and games. As we reflect on Alyx’s anniversary, the burning question is whether Valve is fully committed to VR or if it’s gradually withdrawing from the space it helped pioneer. Let’s delve into what we know so far.

Just one pandemic later, and suddenly, Half-Life: Alyx is five years old—though to many, it only feels like two or three years have passed. The pandemic almost delayed the game’s release entirely. It hit stores in March 2020, just as stay-at-home orders swept across the U.S. to curb COVID-19. Businesses everywhere faced abrupt changes; those capable of remote work scrambled to keep operations running amid unprecedented circumstances.

Valve Software, the brains behind Half-Life: Alyx, was no exception. Had the lockdowns started only a few weeks earlier, the company might have had to delay the game’s launch. The pandemic did cause Valve to cancel its only press preview event for Alyx, yet they successfully released it on the planned date of March 23rd.

This game did more than impress—it was hailed by many as the ‘best VR game,’ perhaps even the ‘best Half-Life’ installment, and one of the finest games ever. Five years on, it remains in 24th place on Steam250’s list of top-rated games across all of Steam.

Valve didn’t just make an outstanding VR game—they set a benchmark with their ‘Index’ VR headset, which stood out as the top choice for PC VR. Not to mention Steam’s thorough VR support, which has been the backbone of the PC VR industry for the past five years.

Despite molding the VR landscape so significantly, Valve has been relatively tight-lipped about future plans in recent years. There’s been little official word on any major initiatives, whether new VR games or hardware.

So, what exactly is Valve’s current VR agenda, if anything? Here’s the rundown.

SteamVR remains the top PC VR platform, with Valve making steady, meaningful updates over time. The biggest recent addition came in late 2023 when Valve unexpectedly introduced the Steam Link app for Quest headsets, allowing for the wireless play of SteamVR games.

And it appears Valve isn’t stopping there with Steam Link. Recent data mining from credible sources suggests that Valve aims to extend Steam Link to new headsets from HTC and Pico.

Moreover, Valve seems to be innovating further with wireless PC VR for standalone headsets. Recent Valve software hints at a “SteamVR Link Dongle,” likely a USB device designed to create a direct wireless link between a PC and headset.

Currently, Steam Link requires headsets to connect through a router to the PC, which, depending on wireless setup, can sometimes lead to connection issues like stutters or pixelation. The anticipated SteamVR Link Dongle could directly connect the PC to the headset, bypassing the router and potentially ensuring a smoother VR experience.

It’s unclear whether this dongle will work with third-party headsets like the Quest or if it’s intended for Valve’s rumored ‘Deckard’ headset.

Ever since the Index’s launch in 2019, Valve has subtly indicated a new VR headset in the works through several patents filed in 2020. These patents propose ideas like a standalone headset and ergonomic designs.

Though it’s been five years since the patents debuted, with no concrete announcement about a new headset, clues from Valve and diligent data miners suggest ongoing development.

Recently, 3D models of unseen VR controllers, suspected to be for a forthcoming Valve headset, appeared in updated SteamVR files. These suggest a continued commitment to VR hardware innovation and hint at how Valve plans to position the new device.

The ‘Deckard’ headset—potentially ‘Index 2’—is thought to function independently but stream content from a SteamVR-running PC, similar to Quest and Steam Link setups today.

The leaked Deckard controllers feature a traditional layout with a D-pad and face buttons, suggesting Valve aims for the headset to handle both VR and flatscreen content comfortably.

Reports from a reliable leaker suggest Valve’s new headset, priced at $1,200, will launch in 2025. This is supported by data miner Brad Lynch, who discovered new “Deckard EV2” references in the latest SteamVR release, indicating proximity to production, much like the Steam Deck OLED reached EV2 before production.

Even though Half-Life: Alyx was a significant achievement, its sales relative to its cost remain unknown. Whether or not Valve is eager to commit to another expansive VR project is uncertain, but there are hints.

A leaker has suggested Valve is ready to release game content or demos specifically created for the Deckard headset. This aligns with insights from Tyler McVicker, another Valve dataminer, who found evidence of an in-development VR game, speculated to be within the Half-Life universe.

McVicker describes it as an asymmetric co-op game where one PC player controls Gordon Freeman and a VR player embodies Alyx Vance. This setup would enable both players to experience interactive stories simultaneously, perhaps uniting Valve’s latest hardware, the Steam Deck and Deckard.

Though Valve hasn’t explicitly confirmed new devices or games, their response hints at ongoing interest: “We don’t have anything new to share currently, but we’re relishing all the creativity blossoming in the Half-Life: Alyx Workshop.”

Valve’s structure and culture defy conventional corporate norms, empowering employees to pursue projects they’re passionate about, provided they can inspire others. The work gets done by teams who truly believe in their mission, backed by Valve’s ample resources.

While Valve might not churn out new VR tech and games annually, the consistent improvements to SteamVR and the occasional intriguing hints suggest a steadfast belief in VR’s potential within the company.