Remember when images of Valve Software’s Left 4 Dead 2 recreated using the Source 2 Engine has been leaked by renowned NeoGAF insider CBOAT? It now seems that there is indeed more going on at Valve that goes beyond the usual Steam Machines, SteamOS and what have you.

A new image posted on NeoGAF indicates some of the files for a Source 2 director. See anything you like in that list?

Along with Counter Strike 2, Left 4 Dead 3 and Dota references, you can plainly see the initials “HL3”. There are only two folder directories – perhaps an indication of just how much work has been done? – but Lord knows it’s better than nothing.

Which is pretty much what Valve has offered us regarding Half Life 3. There has been winks and nudges, along with outright admissions that the developer doesn’t want to rush the third game. But the evidence continues to mount that Valve is doing something with the game. What could it be? Stay tuned.

Lambda Generation is reporting that Gabe Newell has confirmed the existence of Source Engine 2. The first version was released in 2004 along with Half Life 2 and went on to become one of the most flexible engines on the PC due to less resources required and fantastic adaptability to different hardware configurations.

Source Engine has aged but Portal 2 showed that the engine still has some juice left. It’s not clear whether Half-Life 3 is in development on the newest engine but you can rest assured that Valve will definitely make a Half Life game again.

Of course, I don’t know what I am talking about and am just hoping that’s the case.

“We’ve been working on new engine stuff for a while. We’ve just been waiting for a game to roll it out with,” Gabe said in a video that was released on Youtube. 4Chan visited Valve and this was the outcome of that visit.

Thanks, Lambdageneration.