Alyx Turns Five: What’s Next for Valve in VR Evolution?

Five years after Half-Life: Alyx transformed our understanding of what virtual reality gaming could be, Valve continues to subtly, yet significantly, influence the world of VR. While the company doesn’t grab headlines on a daily basis, its ongoing updates to SteamVR, the integration with standalone headsets like the Quest, and the quiet chatter about new hardware and games showcase its impact. Now, as the anniversary of Alyx passes, we’re left pondering a critical question: Is Valve still wholeheartedly invested in VR, or are they gradually stepping back from this frontier they helped shape? Here’s what’s on our radar.

Hard to believe, but it’s been half a decade since Half-Life: Alyx wowed us. We all know how the COVID-19 pandemic made time behave strangely, compressing years into fleeting moments. Originally launched in March 2020, Alyx premiered just as the world was locking down. Stay-at-home orders were rolling out in the US, disrupting countless businesses overnight. Companies that could adapt to remote operations scrambled to keep the wheels turning.

Valve Software, the minds behind Half-Life: Alyx, was among those navigating this upheaval. Had the lockdowns started even slightly earlier, it could have derailed the game’s release. Their press preview event was a casualty, but remarkably, Alyx still launched on its planned date of March 23rd.

Critics and players alike have hailed Half-Life: Alyx as a masterpiece, not just in VR or the Half-Life saga, but as one of the best games ever. Five years later, it proudly holds the 24th spot on Steam250’s top-rated games list. Yet, Valve’s contributions to VR extend beyond creating a top-tier game. Their Index VR headset set the standard for PC VR experiences, and Steam’s comprehensive VR support has been the backbone of the PC VR industry these past five years.

Despite their influential role, Valve has been notably reticent about its long-term vision for VR. There have been virtually no official declarations about big-ticket plans like new VR games or headsets.

So, what is Valve’s current agenda with VR? We’ve pieced together some insights.

Firstly, let’s not overlook the significance of SteamVR, which remains a cornerstone in PC VR. Valve has rolled out steady, meaningful updates over the years. The end of 2023 saw a surprise launch of the Steam Link app for Quest headsets, allowing seamless wireless gameplay of SteamVR titles from PCs.

It appears Valve isn’t done with Steam Link. Data miners have uncovered that Valve is potentially expanding Steam Link’s compatibility to new headsets, including HTC’s Vive Focus and Bytedance’s Pico.

Moreover, Valve seems committed to enhancing wireless PC VR, particularly for standalone headsets. References found in recent software hint at a “SteamVR Link Dongle”—likely a USB device to create a direct, dedicated wireless connection between your PC and headset.

Currently, utilizing Steam Link means your headset connects via your router, which then connects to your PC. In an ideal setup, like being near the router, this works smoothly. But for those with less-than-stellar networking equipment or who wish to maximize bandwidth for top quality, performance hiccups like stuttering can occur.

A SteamVR Link Dongle could eliminate the intermediate router, establishing a direct link and paving the way for a fine-tuned, flawless PC VR experience. Speculations suggest this dongle will use Wi-Fi 6E technology.

It remains uncertain if this dongle will accommodate third-party headsets like the Quest or be an accessory for Valve’s long-speculated ‘Deckard’ headset.

Speaking of Valve’s next VR headset, after launching Index back in 2019, whispers of a new device began with a series of patents filed in 2020. These patents hinted at a standalone headset and several ergonomic designs.

Despite the silence since those patents surfaced, drips of leaks and ongoing data mining efforts indicate that Valve is inching forward with a new headset, even if it’s unfolding in their famously relaxed “Valve Time™.”

Just recently, we saw likely designs for new VR controllers in updated SteamVR files, believed to be intended for Valve’s upcoming headset. This discovery not only fueled hopes for the new headset but also gave insights into its potential capabilities.

The rumored ‘Deckard’ headset, or possibly ‘Index 2’, appears likely to be a standalone device primarily streaming VR content from a SteamVR-equipped PC, similar to the Quest’s current utilization.

Interestingly, the new controllers revealed have a traditional console-like layout, featuring a D-pad and face buttons. This suggests that Valve might be designing the headset to support both VR experiences and playing traditional games on a giant virtual display.

Currently, SteamVR already allows you to play flat-screen games in virtual reality. Yet, most VR controllers aren’t designed like standard gamepads, leading to potential compatibility issues. With the traditional layout of these new controllers, switching between VR and flat-screen games could become seamless.

Moreover, a reliable leaker suggests the new device might debut in 2025 with a $1,200 price tag, though this remains unverified. But considering the ongoing updates in SteamVR code referring to “Deckard EV2,” the headset appears to be progressing toward production.

Turning to games, Half-Life: Alyx, launched in 2020, set a high bar for VR gaming. It remains a standout with its craftsmanship and detail. However, it remains to be seen if Valve feels the commercial success justified the enormous development effort.

The same leaker who predicted a 2025 release for Deckard also hinted that Valve is close to releasing some finished games or demos, crafted specifically for Deckard. This narrative aligns with dataminer Tyler McVicker, who had previously uncovered details ahead of Alyx’s launch.

McVicker speculates Valve is developing another VR game, possibly in the Half-Life universe, with a split experience—one part played on a flatscreen PC and another in VR. Imagine playing as Gordon Freeman on PC while a VR player embodies Alyx Vance, interacting and cooperating throughout their individual narratives.

Maybe Valve sees this as a way to unify its newest hardware ventures: the Steam Deck and the Deckard headset?

Valve, however, remains mum about any VR advancements. When pressed on the fifth anniversary of Alyx for comments on future plans, a spokesperson stated, “Nothing new to share right now,” but appreciated the community’s creative contributions to the Half-Life: Alyx Workshop.

Understanding how Valve operates, however, provides context. Their flat management style allows employees significant liberty in choosing and pursuing projects. It’s a unique corporate culture where projects thrive or falter based on internal passion and interest.

While Valve may not have a yearly release cycle for hardware or games, persistent improvements to SteamVR and continuous hints of deeper projects suggest a nucleus of the company still passionate about VR.

In the world of gaming, where most players follow rigid strategies and timelines, Valve continues to chart its own course.