According to Valve News Network insider Tylver McVicker, who is usually well versed in Valve facts, he currently is. Development from Half-Life 3 It will almost stop because steam surface. In fact, the main teams of the company will deal with titles suitable for the new devices (a hybrid between a PC and a portable console), ignoring the traditional ones.
As already mentioned, in Half-Life 3 there may be a very small team, which in any case will have difficulty making significant progress and will not have the support of the company.
McVicker «The question everyone is asking is whether a true sequel to Half-Life 2: Episode Two is in development within Valve Software. The End of Half-Life: Alyx, for those who haven’t played it, suggests a sequel to the Gordon Freeman story. The problem is, right now, not many teams are working on anything other than software specifically designed for hardware. Valve is trying to release a Steam Deck which, as many have seen, has been more successful than expected, which is why Valve is investing heavily in it.
Half-Life 3, Half-Life 2 Episode 3 and any type of FPS mouse and keyboard are not in development at Valve. If so, it would be in the hands of a few people, whose superiors would not disdain for not being able to generate added value.«
Citadel may be one of the projects in development at Valve, while others are shady at the moment.