The statement came at Valve HQ, where Newell himsef was giving a presentation on the company's upcoming Dota 2 themed card game known as Artifact. Either way, though, it sounds like Valve is back in the games business. It set out to destabilise that.
This focus on expanding beyond just software then gave way to Valve co-developing the HTC Vive.
This new hardware knowledge, alongside the software prowess that the Valve has, will result in more than just brand new video games from Valve.
Back in January 2017 Newell confirmed that Valve was also working on at least one new single-player game during a Reddit AMA.
Interestingly, Nintendo's game development prowess was one reason for why Valve chose to steer itself down such a winding path.
Newell says that the studio now has three big VR titles, though we don't know anything about them now. He feels most strongly about this in the VR space - making me very excited to see what they've been cooking up in their development kitchen.
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"When Miyamoto is sitting down and thinking about the next version of Zelda or Mario, he's thinking what is the controller going to look like, what sort of graphics and other capabilities", explained Newell.
"You can see that Microsoft was like, wow, how can we make Windows more like [Apple]?" Newell hinted that may impact how they treat their game designs going forward. We can design chips if we need to, we can do industrial design, and so on.
Perhaps it'll be different when these titles finally release, but considering the hype that already circulates around "Half Life 3", it'll be very hard for this game to live up to expectations if it ever does reach store shelves. "It's not about being in hardware, it's about building better games".
Artifact probably won't be that game.
Valve isn't done with hardware though, but now it'll go "hand-in-hand with software design", meaning you should really keep an eye on what Valve is up to in the coming months.
Valve's next game, Artifact, is a free-to-play digital card game that won't in any way be pay-to-win according to PC Games N.