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

Five years have zipped by since Half-Life: Alyx transformed virtual reality gaming, yet Valve continues to quietly play an influential role in the VR industry. Without much fanfare, the company has steadily improved SteamVR, collaborated with standalone headsets like the Quest, and hinted at potential new hardware and games. As we reflect on Alyx’s fifth anniversary, the big question looms—Is Valve still deeply committed to the VR frontier, or are they slowly stepping back from the world they helped define? Let’s examine what’s really happening.

Time flies—even when a global pandemic adds a few unexpected twists. Half-Life: Alyx is celebrating five years, though it seems like only a couple for many of us.

The pandemic almost delayed its launch. Released in March 2020, Alyx premiered just as the U.S. began widespread stay-at-home mandates to combat COVID-19. Many businesses faced chaos, scrambling to adapt remote operations in what was far from a typical business environment.

Valve Software, the creator of Half-Life: Alyx, was nearly thwarted by the lockdowns. The launch might have been postponed if shutdowns came just weeks earlier. The pandemic did lead to the cancellation of Valve’s sole press preview for the game, but they managed to release it on March 23 as planned.

Widely acclaimed as not just the best VR game, or the best Half-Life game, but as one of the greatest games of all time, Half-Life: Alyx still holds the 24th spot on Steam250’s list of top-rated Steam games today.

Valve didn’t stop at crafting one of the best VR games. Their Index VR headset was considered top-tier for PC VR, and Steam’s extensive VR support has become an essential element of the PC VR industry over the last five years.

Yet, despite steering significant developments in the VR space, Valve has been notably silent about their future plans. There have been virtually no major official announcements regarding new VR games or headsets.

So, what exactly is Valve’s current stance on VR advancement? Here’s what we’ve uncovered.

What’s Next for Valve in VR

Don’t overlook SteamVR’s role as the cornerstone PC VR platform. Valve’s updates may be gradual but are impactful. Notably, in late 2023, they introduced the Steam Link app for Quest headsets, allowing users to play SteamVR games wirelessly from their PCs.

Valve seems to be expanding Steam Link’s reach, as recent datamining hints that they are working to bring the service to the Vive Focus headsets from HTC and Pico headsets by Bytedance.

Moreover, Valve appears committed to enhancing wireless PC VR for standalone headsets. Recent software hints at a “SteamVR Link Dongle,” anticipated to be a USB device establishing a dedicated link between PC and headset.

Currently, using Steam Link involves connecting your headset to a router, which then links to the PC. While this works if all devices are close to the router, subpar setups can lead to stuttering or pixelation issues.

The SteamVR Link Dongle could establish a direct PC-to-headset connection, bypassing the router, and offering an optimally seamless PC VR experience. Datamined evidence suggests it may employ Wi-Fi 6E technology.

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

Valve’s Next VR Headset

Following 2019’s Index launch, hints of a new Valve VR headset surfaced with the 2020 patent filings. These patents outline concepts including a standalone headset and ergonomic improvements.

Five years since, while no official announcement confirms a new headset, a consistent drip of clues suggests active development might be underway, albeit on Valve’s famously flexible timeline.

Recently, a 3D model of unseen VR controllers, thought to be crafted for Valve’s upcoming headset, appeared within the latest SteamVR updates. Not only does this rekindle hope for new headset development, but it also hints at a possible market positioning.

The rumored ‘Deckard’ or maybe ‘Index 2’ is anticipated to be a standalone headset streaming content from a PC running SteamVR. This mirrors the Quest and Steam Link setup.

Curiously, the leaked Deckard controllers feature a conventional layout with a d-pad and four face buttons, suggesting Valve’s ambition may extend to both VR gaming and flatscreen VR viewing.

Since SteamVR already supports flatscreen gaming via a virtual screen but faces controller compatibility issues, a traditional gamepad layout could streamline the transition between VR and flatscreen gaming experiences.

Additionally, whispers from a credible leaker put a potential launch of this new headset in 2025, pegged at $1,200.

While we can’t confirm this independently, there’s some supporting evidence it might hold water.

Renowned dataminer Brad Lynch recently found references to “Deckard EV2” in the latest SteamVR. “EV2” implies the second “Engineering Validation” stage—closer to production. Although additional evaluations could follow, Lynch speculates a reveal within the year.

Valve’s Next VR Game

Five years post-launch, Half-Life: Alyx stands as a quintessential VR game. However, its commercial success relative to production investment remains ambiguous.

Valve’s commitment to a similarly large-scale VR game remains undecided. But here’s what’s brewing.

Last month, the same source predicting the Deckard release also hinted at nearly-ready games or demos tied to Deckard.

This aligns with Valve dataminer Tyler McVicker’s findings. Less than a year ago, he discovered that alongside Deckard development, another VR game was being assembled, likely another Half-Life installment—but potentially two.

McVicker believes the game could be an asymmetric co-op experience, pairing a flatscreen PC player, as Gordon Freeman, with a VR player, as Alyx Vance. Each experiences interconnected narratives with cooperative elements.

Perhaps Valve envisions this as the bridge connecting its Steam Deck and Deckard endeavors?

For Valve’s part, they remain tight-lipped about a new headset or VR game. When asked about their future VR moves coinciding with Alyx’s anniversary, they responded:

“We don’t have anything new to share right now but… we’ve loved seeing the incredible creations uploaded to the Half-Life: Alyx Workshop,” a Valve spokesperson told Road to VR.

Valve is Unlike Almost Any Other Company

Understanding Valve’s unique structure sheds light on the broader picture. The company’s flat management model differs from any comparable peer, providing employees substantial freedom to choose and influence projects.

According to Valve’s Employee Handbook, initiatives depend on employee interest and collaboration. If a project fails to inspire, it stalls.

However, once a project gains momentum, those involved are deeply committed to its success. Valve’s rich talent pool and unique ethos enable it to punch above its weight, despite its comparatively modest workforce.

While Valve might not churn out new VR releases annually, consistent SteamVR enhancements and subtle hints of ongoing exploration imply a dedicated faction within the company remains optimistic about VR’s future.