The lights are on
File names and icons for Valve's unannounced next-generation game engine Source 2 were reportedly discovered in Source Filmmaker, the new movie-making program.
Website Valvetime.net discovered over 60 references to the new engine. "There are references to Source, Hybrid, and Source 2 in this file," the website says. "We speculate that Hybrid is the base for which Source 2 is sitting on."
There is also one possible reference to Half Life 2: Episode 3:
Valve has been contacted for comment. We'll update this story if we hear back.