Valve Working On Source 2?

Valvetime.net posted up a bit of some snooping work in the Source Film Maker script films and dug up lines that refer to a Source 2 engine. '''Return an str with the current engine version. If key doesn't doesn't exist, assume 'Source', otherwise invalid -- assume next-gen 'Source 2'.''' This would make sense considering Source has been used since the release of Half Life 2. While the engine has been upgraded and improved over time, it is about time they moved on with an improved version of Source. Probably explains why Half Life 2 Episode 3 is taking forever. My guess is that it's been changed to Half Life 3. This is no official word from Valve, so take it as a rumour.

Source: Valvetime.net