Half-Life 2: Episode Three

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Half-Life 2: Episode Three was the planned third and final installment in the Half-Life 2 episodic trilogy. It was announced in May 2006 with a projected release in late 2007 or 2008. Over the years, it became one of the most highly anticipated but ultimately unreleased titles in gaming history — often cited as a classic example of vaporware[1].

With the release of Half-Life: Alyx in 2020, which altered or replaced key narrative threads from Episode Two, the possibility of Episode Three being released grew increasingly unlikely. The game was **officially confirmed as cancelled** on November 16, 2024 — the 20th anniversary of Half-Life 2 — when Valve released a retrospective update and behind-the-scenes content detailing the history and eventual cancellation of the project[2][3].

Footage included in the update showed several assets developed for the episode, including two previously unseen weapons:

  • an unidentified weapon, which featured a model later reused in Portal 2 as a cut Paint Gun.
  • The Ice Gun, a weapon capable of freezing Combine Soldiers, forming ice walls, and creating ramps to traverse environmental obstacles.

Development and setting

It was hinted in a 2007 CVG interview that Episode Three would have been set in or near an Arctic Research Base[5]. This location was intended to follow up on the Borealis mystery revealed in Episode Two and wrap up the ongoing narrative arc of the Resistance, the Combine, and the fate of Gordon Freeman and Alyx Vance.

Valve stated that Episode Three would conclude the story arc of Half-Life 2, but not necessarily the Half-Life franchise as a whole[6].

Source code leak and confirmation

As of February 18, 2025, portions of Episode Three's code were found in the updated Team Fortress 2 branch Source SDK repository on GitHub. The relevant files are located in the following directory: `🖿game/server/episodic/Episode3`

These files contain entity definitions, scripted sequences, and early gameplay logic, confirming that a working build existed internally during development.

Legacy

While Episode Three never materialized as a finished product, its legacy has remained strong in the Half-Life community. Multiple interviews with former Valve developers, including Marc Laidlaw, and content creators have shed light on various narrative drafts and gameplay concepts developed between 2006 and 2011.

The 2024 20th Anniversary update remains the last and most definitive statement from Valve about Episode Three's fate.

See also

References

References