Today I bring the grimmest of news for Half-Life fans. Those staunch folks still holding out hope for Episode 3, let alone a full-blown sequel. A Valve insider has broken ranks on company culture, saying there is no such thing as Half-Life 3 and that any Half-Life projects “ultimately just starve to death”. Gulp.

"There is no such thing as Half-Life 3," says the source, in a decidedly firm answer. "I’ve heard that some teams have had two to three people working on it, and they eventually ran into a wall, and some teams may have gotten up to 30 or 40 people before it was scrapped."

At the same time however, the source does say that the only broken promise is the three additional episodes for Half-Life 2. We’re still waiting on the last of these to cap off the story, but it looks like it’ll never come. As for a sequel, “Anything else that we might think about as a full game or sequel has never been promised.”

Valve was indeed planning to make more Half-Life it turns out, yet a number of other projects began to steal the limelight. “All of that is getting more gravity than this third episode of Half-Life.”

The source is of course referring to the likes of Steam, Counter-Strike, Portal and DOTA. Ultimately Valve has limited resources and it’s chosen to focus the majority of its resources on its most lucrative asset - Steam. Basically, because you’ve gone and bought hundreds of games on Steam you’ve given Valve no reason to make a Half-Life sequel. Shame on you for supporting Valve. The only solution, it would seem, is to force Valve’s hand by investing less in Steam.

All of this comes from an unnamed source of Game Informer (A US games magazine owned by retail store GameStop), so make of that what you will. They haven’t managed to get an independent verification but they do seem to trust their source.

The cold hard fact seems to be that Half-Life 3 is never going to happen, or at least for the foreseeable future. Perhaps it's time we all moved on. So who's up for Knights of the Old Republic 3 then, eh?