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Was half life 3 actually teased, or is it just a meme? I'm legitimately curious at this point.
The lead writer at Valve published the script for it after he left the company a while back. He changed the names around to obfuscate things but it looks like they made him take it down anyways.
I think it's still floating out there somewhere.
Latest theory is that Source 2 engine can't handle it. Yet.
Could be. Honestly, I figured valve made more money off of steam than off of making in-house games anyway, so they just said "fukkit" after portal 2 and focused more on that and hardware.
There have been some people digging into Source 2 files showing that Valve has been working on a Source 2 game involving Xen and HEV suits, but Valve themselves have been mum on the subject.