Valve: We're still figuring out Episode Three
 

Valve Software is still working out exactly what it's going to do with Half-Life 2: Episode Three. "We don't know entirely what's happening in the next episode, but we're gonna figure it out!", a laughing David Speyrer, Episode Two project lead, has told PC Zone magazine. "There are always things we want to do that we can't because of the constraints of either the story or the arc we've laid out for the gameplay - or just time", he continued in a feature dissecting Valve's Orange Box, part one of which you can read on PC Zone's site here. "So we shelve them and carry on. Ideas fly around here quite a bit, so we have this huge laundry list of things to try for the next thing...", Speyrer concluded. Don't expect Episode III any time soon then by the looks of it.

Source: ComputerAndVideoGames.com

I'm dying for HL2 E3. Everyone was hoping for it to come out X'Mas '07. Maybe they're updating their engine? Maybe we'll see SM 3.0?

Strange sort of marketing own-goal that comment from Value. Better to say, "We've got LOADS of new stuff and improved gameplay and, yes, not as linear; we've learned from the open maps of FryCry and the many MP FPS games that people LOVE open terrain and not corridors. We guarantee E3 will be better than anything you've ever played, ever".

But no, they say something wimpering instead, "We're not sure yet what to do, we're arguing amongst ourselves about priorities, and we are behind schedule, and we arent going to get everything in that we wanted to... meaning you might be a bit disappointed once we finally cobble something together".

They need a new PR team.

NO i dont think they need a new team... I think they just need to try harder with alot of effort

I think his comments were refreshingly honest. I am sure this is how their development cycles go every time they make a game of expansion.

Valve can afford to be honest, because when they release something it does not dissapoint.

I would not read into his words that Episode 3 will somehow be a lesser product.

I do hope that E3 ends the HL world. It's not that I don't like HL, it's great.
I would just like to see them move onto something completely new before people start tiring of the story and their rep suffers because of trying to milk too much out of that particular IP.

when are they going to make Half life three?

no idea but i cant wait. I dont want them to ever stop making Half Life, heck i want them to make more.

EP1 Ep2 Ep3 = hl3

Wow, this completely defeats the purpose of having episodes.

I love valve, HL, and the episodes, but I remember when they said they wanted to do episodic content so they could release a new game every 2 or 3 months.

In a magazine article/interview with Gabe and the team working on Episode Two and Left 4 Dead. Valve have said, they won't be moving to DX10 for a long time yet as it's pointless. Instead they're working on making the Source engine completely multithreaded.

So I'm guessing SM3.0 or even 4 support won't be added just yet.

Agreed.
That is what they did originally say.
However, as I remember, episode II took a while too, but they did add extra games like Portal and TF2.
Maybe they will add games along with this release :)

Valve needs to finish off half-life 2 with episode 3. Don't mess with the engine too much just worry about tying up all the loose ends in the story. At the end though make sure to introduce a big cliff hanger that will lead to Half-Life 3. Then is the time to mess with the engine and add more innovation.

Anyways I am dying for episode 3. I finally got the time to finish episode 2 a few ago in the 360 and it just left me wanting more, so much more!!!

HL, HL2, EP1, EP1, HLDM, HL2DM the best games in my life, without doubt i spent the best hours of my life playing HL1 DM and HL2 DM its so cool. I love Valve