Gabe Newell confirms that Source 2 Engine is under development

Great news everyone as Gabe Newell has confirmed that Valve is currently developing the next-generation version of its Source Engine. A couple of days ago, member of /v/ (aka 4chan) visited Gabe Newell to wish him happy birthday. 4chan’s members brought with them a huge birthday card and Newell had to pay $2.5 for the key to unlock it. After that hilarious event – and Newell wearing a combat helmet that was his birthday present – Valve’s co-founder talked a bit with the fans about the company’s plans.
During that chat, Gabe revealed that Valve has been working on a new engine for a while, and they’re waiting for a game to roll it out with. When a fan asked whether this new engine was an extension to the Source Engine or an entirely new engine, Gabe responded and said that it is a completely new engine.
In other news, Gabe said that Valve wants to move on to DRM-free releases, and that it is testing 3 prototype controllers to sell.
You can view the video from 4Chan’s visit below and special thanks to our reader ‘Toufas’ for spotting it.