Five Years of ‘Alyx’: What Lies Ahead for Valve in the VR Landscape?

Five years on from the game-changing release of Half-Life: Alyx, Valve still plays a significant, albeit understated, role in the world of VR. The company hasn’t made loud announcements, yet it continuously influences the VR domain with its updates to SteamVR, compatibility with standalone devices like the Quest, and ongoing suggestions about new hardware and gaming projects. With Alyx’s fifth birthday behind us, one question remains pertinent: Is Valve fully committed to VR, or are they slowly withdrawing from the field they once transformed? Let’s delve into the details.

Thinking back, it’s astounding how swiftly time flies—especially when a pandemic sneaks in. It feels like Half-Life: Alyx debuted just a couple of years ago, but here we are, marking its fifth anniversary.

The COVID-19 pandemic almost led to the game being postponed. Launched in March 2020, Alyx’s release coincided with the onset of lockdowns across the U.S. aimed at curbing the virus’s spread. Many industries experienced overnight adaptations, and Valve Software, Alyx’s developer, was no exception. Had the lockdowns arrived a little sooner, the game’s launch might have been derailed. The pandemic forced Valve to cancel its sole press preview for Alyx, but against the odds, the game still hit its launch date on March 23rd.

Since its release, Half-Life: Alyx has been praised not just as an exceptional VR title or a top-notch Half-Life installment, but as one of the finest games in history. Five years on, it occupies the 24th spot on Steam250’s list of best-rated games on Steam.

Valve’s contribution extends beyond Alyx. Their Index VR headset set a high standard for PC VR, and let’s not overlook how Steam’s robust VR support has kept the PC VR sector thriving over these five years.

Despite its substantial impact, Valve has remained relatively silent about its future intentions in VR. No major announcements about new games or hardware have been forthcoming.

So, what’s happening behind the scenes at Valve regarding VR? Here’s what we can share.

Valve’s Future with VR

It’s essential to recognize SteamVR’s ongoing role as a cornerstone for PC VR. Valve has incrementally enhanced SteamVR over time—a notable advancement being the addition of the Steam Link app for Quest headsets in late 2023, simplifying wireless gameplay for Quest users.

Valve isn’t stopping there with Steam Link. Datamined information indicates the company is working to make Steam Link compatible with upcoming headsets like HTC’s Vive Focus and Bytedance’s Pico headsets.

Furthermore, Valve reportedly plans to refine wireless PC VR for standalone headsets. Recent software analysis hints at a new "SteamVR Link Dongle," anticipated as a USB device aimed at establishing a dedicated wireless link between PCs and headsets.

Currently, using Steam Link requires the headset to connect through your router, which then links to the PC. Within close range, this setup works well, but for those with less optimal wireless setups or wishing for maximum bandwidth, issues like stuttering or pixelation aren’t uncommon.

A SteamVR Link Dongle, if successful, would foster a direct line between the PC and headset, eliminating the router as a middleman. This could grant Valve the opportunity to optimize the wireless connection for an impeccable VR experience. Speculations suggest this dongle might deploy Wi-Fi 6E.

It’s uncertain if the dongle will support third-party headsets like Quest or if it’s designed as an accessory for Valve’s rumored ‘Deckard’ headset.

On to Valve’s Next VR Headset

Following the 2019 launch of the Index, clues about Valve’s experimentation with a new VR setup emerged through patents filed in 2020. These patents illustrated various concepts, including a standalone headset and ergonomic design improvements.

Even without any direct confirmation of a new device, a steady stream of leaks and discoveries from Valve and dataminers indicate ongoing work on a new VR headset, albeit at Valve’s own leisurely pace.

Recently, a 3D model of unseen VR controllers, purported to be intended for Valve’s next headset, surfaced from recent SteamVR updates. This discovery not only suggests Valve’s continued involvement in VR headsets but also offers clues about their intended market.

The mysterious ‘Deckard’ headset, possibly to be branded as ‘Index 2,’ is thought to be an independent VR device primarily streaming content from a SteamVR-capable PC—much like using a Quest headset with Steam Link.

The leaked Deckard controllers, which feature a traditional gamepad layout, could mean Valve aims to cater to both VR and large-screen flatscreen gaming experiences.

SteamVR already supports flatscreen gaming through virtual screens. Yet, because modern VR controls don’t perfectly match typical gamepads, compatibility isn’t assured. Transferring between VR and flatscreen games often requires swapping to a conventional gamepad.

If the Deckard’s controllers adopt a gamepad format, transitioning between VR and flatscreen gaming could be seamless for users.

Recently, leaks imply Valve’s new headset might hit the market in 2025 with a price tag of $1,200. While unverified, some evidence supports this timeline.

Brad Lynch, a well-regarded source of Valve-related insights, found recent references to “Deckard EV2” within the latest SteamVR updates. This “Engineering Validation” status suggests that while more iterations might occur, production seems forthcoming, with a potential reveal hinted at for this year.

What About Valve’s Next VR Game?

Upon release in early 2020, Half-Life: Alyx achieved critical acclaim and remains a uniquely extensive and polished VR experience today. However, it’s uncertain how Valve perceived its commercial success against the development investment.

Whether Valve will embark on another VR project of similar scope remains an open question, yet some details have surfaced.

Last month, a known Valve leaker indicated that games or demos, reportedly on the verge of release, will accompany the Deckard headset.

These assertions align with insights from Tyler McVicker, a seasoned Valve dataminer who, in the past, unearthed key information leading up to Alyx’s launch.

Under a year ago, McVicker discovered that Valve was concurrently developing another VR game while working on Deckard. He speculates their next VR endeavor might expand the Half-Life universe—or possibly be two related titles.

McVicker proposes that this game will feature asymmetric co-op, with one player experiencing the game on PC as Gordon Freeman, and another in VR as Alyx Vance, intertwining their narratives through collaborative gameplay.

Could Valve be plotting this game to merge its latest hardware advances, including the Steam Deck and the Deckard?

Valve hasn’t confirmed new projects yet. When we reached out for comments on future plans coinciding with Alyx’s milestone anniversary, a Valve spokesperson mentioned, “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.”

Valve: An Unorthodox Innovator

Gaining perspective on Valve’s unique approach is crucial to understanding their trajectory. Different from other giants, Valve embraces a unique flat management structure, allowing more autonomy for employees to choose and propel projects.

According to Valve’s Employee Handbook, team members decide independently on projects and rally others to assist. Projects that fail to gather interest organically arise unlikely to advance.

When a project gains momentum, it’s typically driven by those with genuine commitment to the endeavor. This autonomy, coupled with the ability to attract top-tier talent, positions Valve to achieve disproportionate success compared to its workforce size.

Although Valve may not unveil headsets or games annually, its ongoing enhancements to SteamVR and the occasional peeks behind the curtain illustrate that there’s a dedicated segment within Valve passionate about VR’s future.