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Valve Confirms Source Engine 2

A few months back, we found out that there may be a Source Engine 2 in production and Valve has now confirmed that this is indeed happening.

The references that we referred to last time were confirmed by Joystiq in a video that can be seen below.

Gabe Newell, Valve CEO and founder, said that the team is working on a new engine and the team has been waiting for a game to roll it out with. It’s an entirely new engine and is labelled ‘next-gen’. Newell also confirmed that Ricochet 2 is in development using the engine.