Valve's recent tacit admission that they were developing hardware has been slightly clarified in a blog post from one of Valve's founders, Michael Abrash. In his blog post Abrash reveals that he is working on 'wearable computing', "mobile computing where both computer-generated graphics and the real world are seamlessly overlaid in your view".
Abrash explains that "we’ve gone from desktops through laptops and notebooks to tablets (...) the logical endpoint is computing everywhere, all the time – that is, wearable computing". How this relates to finally announcing Half-Life 3 is not yet known, but with a company like Valve putting resources behind this, it's a very exciting time for gamers everywhere.
Source: Valve Software
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