Half-Life 3 is rumored to not be on the way anytime soon, YouTuber Tyler McVicker revealed in a video covering what projects are reputed to be in development at Valve. According to the Valve sources McVicker talked to, "There is not a major development team working on anything outside of the few pieces of software specifically tailored for hardware."

The reason reportedly is because Valve's Steam Deck--launching early 2022--has become the current focus for the company. "Right now, Valve is trying to get the Steam Deck out... Valve is throwing a lot at it," McVicker said. "Half-Life 3, any kind of traditional mouse and keyboard first-person shooter at Valve, is not taking place. If it is, it's a very small group of people."

McVicker also commented on Citadel, another in-progress project at Valve. "[Citadel] is a Half-Life-based, FPS/RTS hybrid, that is cooperatively based. Think about Left 4 Dead, Alien Swarm, and an RTS, and Half-life all having a baby," stated McVicker. "It's being created with the Steam Deck in mind due to how the game is supposed to be controlled. Originally there was supposed to be a VR asymmetrical cooperative component, however due to Valve's lackluster view on VR in the current day, it's very possible that it's set aside."