The recent Reddit flare-up of Valve’s progress log showed the currently unannounced Left 4 Dead 3 and Source 2 engine and was quickly followed by the reveal of the company’s internal Jira archive that included the infamous Half-Life 3 as an alleged project. Unsurprisingly, the photo leak sparked yet another straw-grasping notion that the long-awaited sequel is finally in development. To the dismay of conspiracy nuts everywhere, an inside mind on the Half-Life series has shut down that possibility entirely.
Half-Life voice actor John Patrick Lowrie responded to the horde of comments reading “HL3 confirmed” with staunch dismissal: “Sorry, I’m afraid that the opposite is true. HL3 is not being worked on at this time as far as I know.”
Luckily, in lieu of a dry "NO," Lowrie was also able to shed a little light on the reasons for the sequel’s absence. Speaking on the success of Half-Life 2, he explained that “one of the great things about HL2 is that all of the characters that you meet actually look at you when they talk to you no matter where you go or stand.” However, “with mo-cap you can’t do that, at least not yet.”
In addition to motion capture difficulties, Lowrie cites Valve’s current agenda of other titles and Steam shenanigans as “pretty full up,” and therefore without room for a project as big as Half-Life 3.