As most of you are well aware, the Source engine is still in circulation and powers the likes of Counter-Strike Source, Team Fortress 2, Portal, Left 4 Dead and of course Half Life Episode 1 and 2. So far there has been no information on Valve potentially moving to a brand new engine for Half Life 3, but we could have had the first piece of information on this with a new rumor.

As discovered inside Source Filmmaker files by ValveTime, Valve are seemingly now working on their new engine Source 2 and it could explain the enormous wait and silence that PC users have had to put up with. The Source engine is now eight years old, so in a way it would be very logical to assume that the likes of Half Life 3, Portal 3 and Left 4 Dead 3 would all come on a fresh engine.

Don’t expect Valve to comment on the rumors, but there’s no denying the line of code that can be read over at ValveTime. The words ‘next gen’ are also located in the code as well, so this is obviously very exciting news indeed for the whole PC community. Half Life 3 on a brand new engine is mouthwatering stuff, not to mention a possible new Counter-Strike game that may come bundled along as well.

After the unveiling of Half Life 3 concept art, we’d say that this is the most exciting HL3 rumor we’ve seen so far. How does Half Life 3 on a next-gen Source 2 engine sound to you? Let us know in the comments.

If you have already seen the images, you’ll know that there is a lot of debate going on right now as to whether the images, although they look very authentic, are actually just elaborate photoshops. When we first saw them ourselves, we too had doubts given the length that some crazed fans would go to.

However, we’ve spotted over on the Steam boards that a few Valve moderators simply can’t hide their excitement on the concept images, with two specifically confirming that the images are real. The images, featuring Alyx wearing Eli’s jacket can be seen in their entirety over at the ValveTime Facebook page – so no signs of any Valve takedown yet.

After the images were revealed, Valve moderator ‘Smash’ posted in this thread that ‘this is official art’ and that he is ‘shocked that this day has come.’ When asked to prove why he thinks it’s official art, he then went on to say because he knows the source who leaked the concept art, but isn’t willing to disclose due to ‘exclusivity reasons’.

Later on, another Valve moderator by the name of ‘Sierra Oscar’ decided to chime in on the same thread, again confirming that the images are real and pondered whether Valve will now officially come out and comment on the images. Just to point out to you, if the images are real, remember that they were designed back in 2008 and may not be an accurate look at how Half Life 3 or HL2: Episode 3 looks at the moment in its current state.

After a drought in HL3 rumors though – this is exciting isn’t it folks? Let’s hope Valve do decide to comment on them. Take a look at the full gallery and give us your thoughts on them.

Let’s start with the news about the T-shirt shall we, as Twitter user Ekanaut posted an image of the unnamed Valve employee sporting the Half Life 3 tee at a recent Seattle developer event, as reported from VG247. According to Chandana Ekanayake, the user responsible for the Twitter account he had been given ‘permission’ to take the picture by Valve, obviously implying that the company did not mind him taking a picture of a Valve employee being associated with the words ‘Half Life 3′.

So, was this Valve’s way of sparking mass fan excitement by revealing the t-shirt in preparation for an official announcement, or was it simply a ‘troll’ by the company, designed purely to tease fans? Surely Valve wouldn’t do such a thing would they?

Now then, a report we’ve read over at StickSkills reveals that Half Life 3 could be the surprise announcement at this years Video Game Awards. You may remember that at last year’s event, Bethesda’s Todd Howard took to the stage to announce the next Elder Scrolls game Skyrim much to everyone’s surprise, so the VGAs are definitely building a reputation for bombshell game announcements and Half Life 3 would certainly fit in that category.

Apparently, a Half Life 3 teaser trailer will be shown at the 2011 VGAs and Valve will reveal a release date for the game shortly afterwards. Combine this rumor with that Half Life 3 t-shirt picture and we have a very exciting rumor for sure. The VGAs will take place on December 10 this year on Spike TV, so make sure you are tuned in and strapped in for a potential night to remember.

If you are a die-hard Half Life fan, what are your thoughts on the Valve t-shirt and possible VGA announcement whispers – do you think it will happen?