In the documentary of Half-Life 2’s 20th anniversary, the development team was interviewed, revealing information about Half-Life 2 Episode Three, which was canceled for the first time. Valve decided not to proceed with Episode Three back then because they couldn’t find a compelling enough storyline for it. The team’s proposals didn’t satisfy Gabe Newell, Valve’s CEO, and the development side was unsure about how long Episode Three should be, considering Episode Two was longer but required a longer development time.
As expectations for Episode Three grew, the team still lacked a great idea. Additionally, the Left 4 Dead project demanded resources, so the Half-Life team shifted their focus to work on Left 4 Dead instead. After completing Left 4 Dead, they felt it was too late to return to Episode Three and believed they needed to start afresh, eventually leading to the development of Source 2 in 2015. Meanwhile, Valve was busy with other projects like Left 4 Dead 2, Portal 2, and the rising trend of multiplayer games, diverting the Half-Life team’s attention.
Looking back now, the development team realizes they made a mistake by not pushing forward with Episode Three. Gabe himself acknowledges this misstep, as at the time, they felt creating Episode Three wouldn’t advance Valve’s game portfolio (resulting in Half-Life: Alyx, a VR storytelling experience). While delivering a sequel that fans were eagerly waiting for wasn’t a monumental challenge, Gabe explained that if they had focused on Episode Three then, we might not have seen DOTA as we know it today.
Status of Episode Three was in a preliminary stage, with some models created and storyline points written but not yet organized cohesively. The development team mentioned that given another 6 months, the game’s concept would have been more fleshed out before undergoing serious development, which would have taken another 1.5-2.5 years to complete.
The concept of Episode Three, as revealed in the documentary, takes players on an adventure in a world covered in snow and ice, with Gordon Freeman and Alyx continuing their journey together. A new weapon, the Ice Gun, can create ice walls to defend or create pathways to traverse obstacles. The new enemy idea introduced in this installment, called a blob, resembles a slime monster that moves across surfaces, consumes other monsters, disperses, and regenerates.
The details about Episode Three are towards the end of the documentary.
TLDR: Valve’s decision not to proceed with Half-Life 2 Episode Three left the development team regretting the missed opportunity, leading to the focus shifting to other projects. Despite initial setbacks, the team acknowledges the mistake and the potential for a revamped approach to complete Episode Three in the future.
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