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

Five years have zoomed by since Half-Life: Alyx revolutionized the VR realm, but Valve continues to operate in the background, subtly influencing the virtual reality industry. Though they’re not making a lot of noise, they’ve quietly been updating SteamVR, collaborating with standalone headsets such as Quest, and there are murmurs about new hardware and potential games. As we mark Alyx’s fifth anniversary, a pressing question emerges: Is Valve fully committed to VR, or are they stepping back from the very frontier they helped shape? Let’s delve into what we understand so far.

It’s almost hard to believe, but thanks to a global pandemic, Half-Life: Alyx is now five years old. For many, it feels like just two or three years have gone by. The pandemic nearly jeopardized the game’s release entirely, as Alyx launched in March 2020, coinciding with lockdowns across much of the U.S. Companies scrambled to adapt, and Valve was no exception. If lockdowns had hit just a little earlier, the game’s launch might have been delayed. Despite canceling its only press event for the game, Valve released Alyx as planned on March 23rd.

Heralded as not only the premiere VR experience but also one of the finest games ever, Half-Life: Alyx continues to shine, holding a strong spot among the top-rated games on Steam’s list five years on. However, Valve’s influence extends beyond this single game. Their ‘Index’ VR headset has been a top choice for PC VR enthusiasts, and Steam’s thorough support has become the heartbeat of the PC VR industry over the past five years.

Yet, Valve has been largely silent regarding its future plans in VR over recent years. No grand announcements about new games or headsets have emerged, which begs the question: What exactly is Valve doing about VR? Here’s what we’ve gathered.

Firstly, it’s crucial to appreciate that SteamVR stands as the foremost platform for PC VR. Valve has been making gradual yet significant updates. A remarkable addition occurred at the close of 2023 when the company surprisingly released the Steam Link app for Quest headsets. This advancement made it easier for Quest users to wirelessly enjoy SteamVR games on their PCs.

But that might not be the end of it. Reliable sources from datamining suggest Valve is developing Steam Link for new devices, including HTC’s Vive Focus headsets and Bytedance’s Pico headsets. There’s also evidence pointing to a “SteamVR Link Dongle,” anticipated to be a USB device forming a dedicated wireless connection between a user’s PC and their headset.

Currently, using Steam Link involves connecting your headset to your router, which then links to your PC. This setup works adequately if you’re near the router, but in less ideal setups, connectivity issues such as stuttering or pixelation aren’t uncommon. A SteamVR Link Dongle could bypass this by establishing a direct connection, presumably using Wi-Fi 6E, between PC and headset, optimizing the experience.

It’s uncertain whether this dongle will support third-party headsets like Quest or if it’s exclusively designed for Valve’s rumored ‘Deckard’ headset.

After Valve’s Index headset in 2019, speculations around a new headset began swirling, fueled by patents in 2020. These documents suggested Valve was contemplating standalone headsets and ergonomic designs. Though there’s been no official word since, there are hints—courtesy of data mines and Valve’s leaks—that a new device is in the works, even if progressing on Valve’s unique timeline.

Recently updated SteamVR files unveiled a 3D model of new VR controllers believed to be for Valve’s next headset. This has reinvigorated belief in the development of their next VR venture. Rumors suggest the ‘Deckard’ headset, possibly branded as ‘Index 2’, would primarily be used as a standalone device streaming content from a PC.

The leaked Deckard controllers borrow from traditional gamepad layouts, implying a versatility for both VR and flatscreen gaming on virtual screens. Now, stepping from a VR to a flatscreen game often requires swapping VR controllers for standard gamepads. Retaining such a familiar layout in Deckard controllers might simplify transitions between different gaming formats.

A recent leak suggests Valve might release its next headset, priced at around $1,200, in 2025. Though unverified, evidence hints this may not be fantasy. A known dataminer, Brad Lynch, spotted “Deckard EV2” references in recent SteamVR releases, suggesting steps toward production. Valve’s Steam Deck OLED had reached EV2 before moving to mass production, strengthening belief in the headset’s gradual progress.

Moving to VR games, Half-Life: Alyx wowed players when it launched, setting a gold standard in VR. Yet, the question remains if Valve was satisfied with its sales against the effort it demanded. Whether they’ll develop another immersive VR experience at that scale is yet to be answered.

However, recent leaks imply Valve has nearly finished work on games or demos tailored for the Deckard headset. Tyler McVicker, a seasoned Valve dataminer, hinted at the possibility of a new VR game—potentially a part of the Half-Life series—being developed alongside Deckard.

He speculated on an asymmetric co-op experience—one aspect for a flatscreen player as Gordon Freeman and the other for a VR player as Alyx Vance—suggesting a blend of narratives for both Playstyles. Perhaps Valve’s vision marries this with its latest hardware endeavors?

Valve remains coy about confirming any upcoming VR projects. When approached for comments during Half-Life: Alyx’s five-year anniversary, a representative shared: “We have no new information to release, but… we’ve really appreciated the creativity folks have shown in the Half-Life: Alyx Workshop.”

To understand Valve’s unique position, it’s important to appreciate its unconventional management style. A flat structure allows employees significantly more freedom to pursue passions, choosing their projects and leading their peers. Valve doesn’t adhere to typical corporate hierarchies and doesn’t rush VR products to market each year.

Yet, improvements to SteamVR and subtle indications of future projects suggest there’s a group within Valve deeply invested in VR’s potential. While Valve might take its time, their unique culture and significant resources lead one to believe they’re still in the game, crafting a future for VR.