Alyx Turns Five: What’s Next for Valve in the VR World?

Five years after Valve revolutionized virtual reality gaming with Half-Life: Alyx, the company continues to be an influential, though somewhat silent, presence in the VR world. Without making much noise, Valve has been quietly refining the virtual reality landscape. They’ve done this through consistent updates to SteamVR, seamless integration with standalone headsets like Quest, and the intriguing hints of new hardware and games on the horizon. As we mark Alyx’s fifth anniversary, a looming question remains: is Valve still committed to pushing VR boundaries, or are they gradually stepping back from the path they pioneered? Here’s what we determined.

It feels like just yesterday, but one global pandemic later, and suddenly, Half-Life: Alyx is celebrating its fifth birthday. Time seems to have flown by in just two or three years for many of us. Back when it launched in March 2020, the world was just beginning to feel the impact of the COVID-19 pandemic, with lockdowns sweeping much of the United States. Many companies faced immediate upheaval, scrambling to adapt to remote work. Valve Software, the brains behind Half-Life: Alyx, was no exception. They admitted that had lockdowns hit just weeks earlier, the game’s launch might have faced delays. The pandemic even forced the cancellation of their only press preview event for the game. Fortunately, Alyx still made its debut on March 23rd, right on schedule.

Half-Life: Alyx received widespread acclaim, celebrated by many not only as the top VR game but also as a pinnacle within the Half-Life series, and some even say, in gaming history. Five years on, it still ranks impressively at 24th on Steam250’s all-time best-rated games chart. Yet, Valve’s contributions extend beyond this one hit. Their Index VR headset was once considered the gold standard for PC VR, and the robust support for VR on Steam has kept the PC VR industry humming in recent years.

Even with such a profound impact, Valve has remained mum about their future plans for VR. As of late, there have been virtually no official announcements regarding any new ventures, whether game or hardware-related. So, what’s Valve currently up to in the VR space? Here’s what we’ve pieced together.

Firstly, one can’t dismiss the crucial role SteamVR continues to play. Over the years, it has seen gradual but important improvements. The most notable of these was the unexpected release of the Steam Link app for Quest headsets in late 2023. This app made it easier for Quest users to wirelessly enjoy SteamVR games from their PC. Valve appears unwilling to stop there. Datamines from reliable sources suggest that they are working to expand Steam Link compatibility to new headsets, including HTC’s Vive Focus and ByteDance’s Pico.

There are also indications of efforts to enhance wireless PC VR experiences for standalone headsets. References in recent Valve software allude to a “SteamVR Link Dongle,” presumably a USB device that would establish a direct wireless link between a PC and a headset. The current process involves connecting a headset to a router and then to a PC, which works fine if you’re nearby. However, suboptimal wireless setups can lead to annoying issues like stuttering and pixelation.

The anticipated SteamVR Link Dongle would bypass the router entirely, creating a direct connection instead. Such a move could offer a much smoother experience with a wireless connection of known reliability, optimized for peak performance. Speculations highlight the dongle’s potential use of Wi-Fi 6E technology. It remains uncertain whether this dongle would be compatible with third-party headsets like Quest or if it’s intended for Valve’s enigmatic ‘Deckard’ headset.

Speaking of hardware, the 2019 launch of Index was followed by several intriguing patents from Valve in 2020, hinting at aspirations for a new headset. Five years have passed since then, and although no announcement has been made, clues suggest Valve is still chipping away at a new VR device, albeit on their own schedule. Just a few months ago, dataminers stumbled upon a 3D model of previously unseen VR controllers within updated SteamVR files. These controllers sparked renewed hope, hinting that Valve’s wheels are still turning.

The rumored ‘Deckard’ headset, potentially marketed as ‘Index 2,’ is believed to be a standalone device designed primarily to stream content from a host PC via SteamVR, echoing the setup used by Quest and Steam Link users today. The leaked controllers, featuring a traditional gamepad layout with a D-pad on the left and four face-buttons on the right, suggest this headset could cater not only to VR but also to gaming on a vast virtual screen.

Valve’s idea of supporting flatscreen gaming on a virtual screen aligns well with SteamVR’s current capabilities. Given the typical discrepancies between VR controllers and standard gamepads, during gameplay, users often find themselves swapping VR controllers for gamepads. A straightforward gamepad setup on Deckard controllers could make transitioning between VR and flatscreen gaming much more seamless.

Recently, a leaker with a solid track record hinted at a 2025 launch for Valve’s next headset, potentially priced at $1,200. While it’s a speculative claim, there’s enough evidence to take it seriously. Brad Lynch, a highly-regarded dataminer, recently found references to “Deckard EV2” in SteamVR’s latest release, suggesting progress towards production. Valve’s Steam Deck OLED followed a similar development path, reaching the EV2 stage before hitting the market. Lynch backed his findings with a confident prediction of an official reveal soon.

On the gaming front, five years after Half-Life: Alyx wowed players worldwide, Valve’s plans for another VR game remain foggy. The praise was nearly universal, but the question remains whether Valve found the game’s sales figures justifying the resources invested in its creation. So, will they go big again? The jury’s still out, but clues suggest another major project could be brewing.

Recently, the same leaker who pegged a 2025 headset launch also suggested that Valve has near-ready games or demos tailored for Deckard. Long-time Valve dataminer Tyler McVicker, who accurately forecasted Half-Life: Alyx details in the years preceding its launch, provided support for these claims. Last year, McVicker uncovered evidence of yet another VR title being actively developed alongside Deckard hardware. With Valve’s treasure trove of intellectual property to mine, McVicker projects this potential VR game to continue the Half-Life saga—possibly even in not one, but two new chapters.

Envisioned as an asymmetric co-op adventure, McVicker suggests the game could feature gameplay for both a PC and VR player. The setup would cast the PC player as Gordon Freeman and the VR player as Alyx Vance, allowing their in-game narratives to unfold in parallel with cooperative components.

Such an endeavor might just be Valve’s vision to unify its groundbreaking hardware—the Steam Deck and Deckard. While Valve has yet to divulge any official information about their VR future, a company representative stated: “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’s unique company structure helps put these speculations into perspective. The firm operates under a rare ‘flat’ management system, not typically found among its industry peers. This setup grants Valve’s employees more freedom to pursue projects they’re passionate about. As outlined in the Valve Employee Handbook, employees are encouraged to seek partners within the company to bring their ideas to life. Projects lacking team support typically don’t advance.

But when a project gains momentum, it’s built by a team genuinely dedicated to its success. This approach, combined with financial resources to attract top-tier talent, marks Valve as a powerhouse, punching well above its weight despite its relatively small team size compared to industry giants.

Valve might not churn out headsets or VR games annually, but their continued enhancements to SteamVR and whispered hints of innovation behind closed doors, indicate there are enthusiasts within the company, driven by a belief in the future of VR.