Half-Life: Xen Reportedly Tipped as a Steam Machine Launch Title, According to Leaks

Half-Life has once again become the centre of industry speculation, with fresh rumours suggesting Valve's long-awaited sequel could launch alongside the company's upcoming Steam Machine hardware.

Many had hoped that the next game, reportedly tagged as Half-Life Xen, would've finally made an appearance during TGA 2025. However, the event passed without even a mention of it. Fans shouldn't be too disappointed though as the project has new developments.

No Steam Machine Release Date, No Half-Life Xen

According to new rumours, the game's release is tightly tied to the release of the Steam Machine. At least that's according to comments made by Insider Gaming Weekly journalist Mike Straw.

He claims to have spoken to multiple undisclosed sources who insist that Half-Life 3 is real and is planned as a launch title for Valve's next-generation Steam Machine.

Straw also hinted on social media that the game's absence from TGA 2025 could be linked to uncertainty around the hardware's final pricing and release schedule.

Valve's Steam Machine has been the subject of growing speculation in recent months. The device is expected to function as a high-end PC and console hybrid, making it closer to traditional gaming PCs than subsidised consoles.

While Valve has yet to officially confirm pricing, reports suggest the system could launch in the first quarter of 2026. This would position Valve in a nice spot considering that the next generation of consoles is yet to arrive, so competition isn't tight.

The lack of a confirmed price may explain Valve's silence. If Half-Life 3 is intended to be the star of the Steam Machine's launch, its reveal may be timed to coincide with the opening of pre-orders, allowing Valve to use the long-awaited sequel as a major selling point for the new hardware.

Industry observers have raised concerns that the Steam Machine could be costly. Tech YouTuber Linus Tech Tips recently estimated that the hardware could retail for around $699 (£545 GBP) based on component costs, though other speculation places the price closer to $800 (£625 GBP).

Valve has reportedly indicated that the system will follow a PC-like pricing structure, with final details likely to be announced closer to launch.

If current rumours prove accurate, Valve's strategy could involve showcasing the Steam Machine's price and pre-order window early in 2026, followed by the official announcement of Half-Life Xen.

Additional trailers and gameplay reveals could then build momentum ahead of a launch window reportedly set between March and April.

There is also speculation that Half-Life Xen could initially be exclusive to the Steam Machine, a move that would significantly boost the platform's appeal despite potential backlash over pricing.

Given the franchise's enduring popularity, some analysts believe the game could rival major releases like GTA 6 in terms of hype and cultural impact.

Fans had initially thought that a sequel wouldn't be possible because the game was allegedly cancelled in 2013 due to game engine issues. It's good to know that Valve is pushing through with the project, even though it took over two decades to get it done.

For now, Valve has not commented on the rumours. As with previous Half-Life 3 speculation, fans remain cautious, but the convergence of Steam Machine reports and renewed insider claims has reignited hope that one of gaming's most elusive sequels may finally be on the horizon.