Valve Software

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How Valve made Half-Life 2 and set a new standard for future games


From physics to greyboxing, Half-Life 2 broke a lot of new ground.

This article is part of our 20th anniversary of Half-Life 2 series. Credit: Aurich Lawson

It’s Half-Life 2 week at Ars Technica! This Saturday, November 16, is the 20th anniversary of the release of Half-Life 2—a game of historical importance for the artistic medium and technology of computer games. Each day up through the 16th, we’ll be running a new article looking back at the game and its impact.

There has been some debate about which product was the first modern “triple-A” video game, but ask most people and one answer is sure to at least be a contender: Valve’s Half-Life 2.

For Western PC games, Half-Life 2 set a standard that held strong in developers’ ambitions and in players’ expectations for well over a decade. Despite that, there’s only so much new ground it truly broke in terms of how games are made and designed—it’s just that most games didn’t have the same commitment to scope, scale, and polish all at the same time.

To kick off a week of articles looking back at the influential classic, we’re going to go over the way it was made, and just as importantly, the thought that went into its design—both of which were highly influential.

A story of cabals and Electronics Boutique

Development, design, and production practices in the games industry have always varied widely by studio. But because of the success of Half-Life 2, some of the approaches that Valve took were copied elsewhere in the industry after they were shared in blog posts and conference talks at events like the Game Developer’s Conference (GDC).

The cabals of Valve

Valve is famous for influencing many things in gaming, but it was most influential in its relatively flat and democratic team structure, and that played out even during Half-Life 2’s development in the early 2000s. While many studios are broken up into clear departments big and small for different disciplines (such as art, level design, combat design, narrative design, AI programming, and so on), many parts of Valve’s Half-Life 2 team consisted of a half-dozen multi-disciplinary small groups the company internally called “cabals.”

Each major chapter in Half-Life 2 had its own unique four-to-five-person cabal made up of level designers and programmers. These groups built their levels largely independently while frequently showing their work to other cabals for feedback and cross-pollination of good ideas. They all worked within constraints set in a pre-production phase that laid out elements like the main story beats, some of the weapons, and so on.

A resistance soldier shoots at a Strider in the streets of City 17

Each major chapter, like this battle-in-the-streets one toward the end of the game, was designed by a largely independent cabal. Credit: Valve

Additionally, similarly sized design cabals worked on aspects of the game’s design that crossed multiple levels—often made with representatives from the chapter cabals—for things like weapons.

There was even a “Cabal Cabal” made up of representatives from each of the six chapter teams to critique the work coming from all the teams.

Ruthless playtesting

Many game designers—especially back in the ’80s or ’90s—worked largely in isolation, determining privately what they thought would be fun and then shipping a finished product to an audience to find out if it really was.

By contrast, Valve put a great deal of emphasis on playtesting. To be clear: Valve did not invent playtesting. But it did make that a key part of the design process in a way that is even quite common today.

The Half-Life 2 team would send representatives to public places where potential fans might hang out, like Electronics Boutique stores, and would approach them and say something along the lines of, “Would you like to play Half-Life 2?” (Most said yes!)

A group of game developers sits on couches and takes notes while a PC gamer plays Half-Life 2

A photo from an actual early 2000s playtest of an in-development Half-Life 2, courtesy of a presentation slide from a Valve GDC talk. Credit: Valve

The volunteer playtesters were brought to a room set up like a real player’s living room and told to sit at the computer desk and simply play the game. Behind them, the level’s cabal would sit and watch a feed of the gameplay on a TV. The designers weren’t allowed to talk to the testers; they simply took notes.

Through this process, they learned which designs and ideas worked and which ones simply confused the players. They then made iterative changes, playtested the level again, and repeated that process until they were happy with the outcome.

Today’s developers sometimes take a more sophisticated approach to sourcing players for their playtests, making sure they’re putting their games in front of a wider range of people to make the games more accessible beyond a dedicated enthusiast core. But nonetheless, playtesting across the industry today is at the level it is because of Valve’s refinement of the process.

The alpha wave

For a game as ambitious as Half-Life 2 was, it’s surprising just how polished it was when it hit the market. That iterative mindset was a big part of it, but it extended beyond those consumer playtests.

Valve made sure to allocate a significant amount of time for iteration and refinement on an alpha build, which in this case meant a version of the game that could be played from beginning to end. When speaking to other developers about the process, representatives of Valve said that if you’re working on a game for just a year, you should try to get to the alpha point by the end of eight months so you have four for refinement.

Apparently, this made a big impact on Half-Life 2’s overall quality. It also helped address natural downsides of the cabal structure, like the fact that chapters developed by largely independent teams offered an inconsistent experience in terms of the difficulty curve.

With processes like this, Valve modeled several things that would be standard in triple-A game development for years to come—though not all of them were done by Valve first.

For example, the approach to in-game cutscenes reverberates today. Different cabals focused on designing the levels versus planning out cutscenes in which characters would walk around the room and interact with one another, all while the player could freely explore the environment.

A screenshot of Combine soldiers fighting antlions in Nova Prospekt

Nova Prospekt was one of the first levels completed during Half-Life 2‘s development. Credit: Valve

The team that focused on story performances worked with level designers to block out the walking paths for characters, and the level designers had to use that as a constraint, building the levels around them. That meant that changes to level layouts couldn’t create situations where new character animations would have to be made. That approach is still used by many studios today.

As is what is now called greyboxing, the practice of designing levels without high-effort artwork so that artists can come in and pretty the levels up after the layout is settled, rather than having to constantly go back and forth with designers as those designers “find the fun.” Valve didn’t invent this, but it was a big part of the process, and its in-development levels were filled with the color orange, not just gray.

Finding the DNA of Half-Life 2 in 20 years of games

When Half-Life 2 hit the market via the newly launched Steam digital distribution platform (more on that later this week), it was widely praised. Critics and players at the time loved it, calling it a must-have title and one that defined the PC gaming experience. Several of the things that came out of its development process that players remember most from Half-Life 2 became staples over the past 20 years.

For instance, the game set a new standard for character animations in fully interactive cutscenes, especially with facial animations. Today, far more advanced motion capture is a common practice in triple-A games—to the point that games that don’t do it (like Bethesda Game Studios titles) are widely criticized by players simply for not taking that route, even if motion capture doesn’t necessarily make practical sense for those games’ scope and design.

And Half-Life 2’s Gravity Gun, which dramatically built on past games’ physics mechanics, is in many ways a  concept that developers are still playing with and expanding on today. Ultrahand, the flagship player ability in 2023’s The Legend of Zelda: Tears of the Kingdom, could be seen as a substantial evolution from the Gravity Gun. In addition to offering players the ability to pick and place objects in the world, it gives them the power to attach them to one another to build creative contraptions.

There’s also Half-Life 2’s approach to using environmental lines and art cues to guide the player’s attention through realistic-looking environments. The game was lauded for that at the time, and it was an approach used by many popular games in the years to come. Today, many studios have moved on to much more explicit player cues like the yellow climbing holds in so many recent triple-A titles. As you’ll see in an upcoming article this week written by someone who played Half-Life 2 for the very first time in 2024, Half-Life 2’s approach may have set the stage, but modern players might expect something a little different.

A trainyard in City 17

Environments like this were carefully designed to guide the player’s eye in subtle ways. Today, many triple-A games take a less subtle approach because playtesting with broader audiences shows it’s sometimes necessary. Credit: Valve

One thing about the environment design that Half-Life 2 was praised for hasn’t been replaced these days, though: a commitment to subtle environmental storytelling. World-building and vibes are perhaps Half-Life 2’s greatest achievements. From BioShock to Dishonored to Cyberpunk 2077, this might be the realm where Half-Life 2’s influence is still felt the most today.

A legacy remembered

Looking back 20 years later, Half-Life 2 isn’t necessarily remembered for radical new gameplay concepts. Instead, it’s known for outstanding execution—and developers everywhere are still applying lessons learned by that development team to try to chase its high standard of quality.

Even at the time, critics noted that it wasn’t exactly that there was anything in Half-Life 2 that players had never seen before. Rather, it was the combined force of quality, scope, presentation, and refinement that made an impact.

Of course, Valve and Half-Life 2 are also known for multiple memorable cultural moments, some of the industry’s most infamous controversies, and playing a big part in introducing digital distribution. We’ll explore some of those things as we count down to the “Red Letter Day” this Saturday.

Photo of Samuel Axon

Samuel Axon is a senior editor at Ars Technica. He covers Apple, software development, gaming, AI, entertainment, and mixed reality. He has been writing about gaming and technology for nearly two decades at Engadget, PC World, Mashable, Vice, Polygon, Wired, and others. He previously ran a marketing and PR agency in the gaming industry, led editorial for the TV network CBS, and worked on social media marketing strategy for Samsung Mobile at the creative agency SPCSHP. He also is an independent software and game developer for iOS, Windows, and other platforms, and he is a graduate of DePaul University, where he studied interactive media and software development.

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mysterious-“black-mesa”-website-says-it’s-“not-secretly-working-on-half-life-3”

Mysterious “Black Mesa” website says it’s “not secretly working on Half Life 3”

That’s what they want you to think —

It’s “actually a real company in the Boston area”—or is that just a cover?!

Kind of a weird image to post if you're trying to convince people you're not involved in a <em>Half-Life</em> ARG…” src=”https://cdn.arstechnica.net/wp-content/uploads/2024/08/blackmesa-800×449.jpg”></img><figcaption>
<p><a data-height=Enlarge / Kind of a weird image to post if you’re trying to convince people you’re not involved in a Half-Life ARG…

Here at Ars, we’re always on the lookout for hints and actions that suggest the long, long wait for Half-Life 3 may eventually come to an end. So when users across the Internet started making note of the mysterious and intriguingly named BlackMesa.com recently, our ears perked up for signs of a new promotional alternate reality game (ARG).

Alas, this seems like yet another false alarm. BlackMesa.com is simply the website for Black Mesa, which confirmed in a public statement that it is “actually a real company in the Boston area… working hard to assure and secure vaccine and other biological manufacturing production.”

HALF LIFE 3 MIGHT BE GETTING ANNOUNCED ON SEPTEMBER 30THhttps://t.co/hSytiq2GoR Just went live and it has a countdown at the bottom of the page, that ends on September 30th. When it finishes it will display a white text saying “That’s it.” pic.twitter.com/MK3QveRc6R

— PеQu (@ImPeQu) August 9, 2024

The BlackMesa.com domain name dates back to at least 2006, when the address was filled with search engine optimization ads by an outfit called MDNH, Inc. But in 2022, a page advertising the domain’s availability for purchase was suddenly replaced by a mysterious logo that bears a striking resemblance to the fictional Black Mesa logo in the games. And then there’s the hard-to-read cipher at the bottom, the kind of thing that an ARG might use to hide important information in plain sight.

The site stayed like that, to little wider notice or suspicion, until August 8, when Valve fans on social media began to “[wake] up to a Black Mesa website” that had suddenly been updated with a new header declaring, “Science requires process. Our insight defends it.” Others on social media were quick to note the old cipher text as a well as a new, obfuscated JavaScript countdown function with the internal name “Lambda Incident”. That countdown seemed to be pointing toward something happening on September 30, which seems like as good a time as any to announce Half-Life 3, right?

Truth is less interesting than fiction

The old Black Mesa web site, as it appeared for roughly two years, until last week. Note the cipher text on the bottom.

Enlarge / The old Black Mesa web site, as it appeared for roughly two years, until last week. Note the cipher text on the bottom.

The Valve faithful hoping this was a new version of the old Portal 2 Potato ARG had their hopes quickly dashed, though. Internet sleuths soon found a digital paper trail for Charles Fracchia, a research scientist who is listed on LinkedIn and elsewhere as the founder of “Black Mesa, a stealth company developing technologies that create provable assurance for advanced manufacturing workflows” since back in 2022. And by last Friday, the Black Mesa team put up a blog post quashing any game-related rumors that might be circulating.

“As much as we would be honored to be part of any Valve game—we do not work in this sector at all,” the blog post reads. “We are not secretly working on Half-Life 3, Project White Sands (whatever that is/may be) or any other Valve title—we’re just nerds working to secure the global bioeconomy.”

The team went on to thank the Half-Life community that had sent in “a ton of messages of support and curiosity” about the company, as well as “thousands of fake inquiries” that “made us laugh.” As for that old ciphertext? Turns out solving it simply unlocked a recruitment message seeking “engineers, cybersecurity professionals, and biologists” for the company. “KingPotatoVII please reach out, we’ve been trying to send you some swag for cracking the cipher a while back,” the Black Mesa team wrote with a smiley face emoji.

Any excuse to repost this video is a good one.

Despite the revelation of the real Black Mesa corporation, some hangers-on haven’t quite given up hope that this is all still just an extremely subtle bit of stealth marketing. “What if [actual scientist Charles Fraschia] is such a huge fan of Half-Life, like us, and decided to use his image/likeness to do this ARG for the game?” one Reddit user wrote last week. “Maybe he reached out and absolutely went full madlad with Valve to make this a magnum opus of an ARG. … Could be simply someone is heavy trolling us, and to be honest I’m not even mad because this is fun af!”

Keep hope alive, Valve faithful! Half-Life 3 is obviously just around the corner, no matter what anyone says! The truth is out there for those with eyes to see it!

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portal-64-is-an-n64-demake-of-valve’s-classic,-now-available-as-a-“first-slice”

Portal 64 is an N64 demake of Valve’s classic, now available as a “First Slice”

For the consoles that are still alive —

It’s shocking how good the Portal Gun feels on late 1990s tech.

The Portal Effect, or seeing oneself step through sideways.

Enlarge / Remember, this is the N64 platform running a game released at least five years after the console’s general life cycle ended.

Valve/James Lambert

James Lambert has spent years making something with no practical reason to exist: a version of Portal that runs on the Nintendo 64. And not some 2D version, either, but the real, blue-and-orange-oval, see-yourself-sideways Portal experience. And now he has a “First Slice” of Portal 64 ready for anyone who wants to try it. It’s out of beta, and it’s free.

A “First Slice” means that 13 of the original game’s test chambers are finished. Lambert intends to get to all of the original’s 19 chambers. PC Gamer, where we first saw this project, suggests that Lambert might also try to get the additional 14 levels in the Xbox Live-only Portal: Still Alive.

So why is Lambert doing this—and for free? Lambert enlists an AI-trained version of Cave Johnson’s voice to answer that question at the start of his announcement video. “This is Aperture Science,” it says, “where we don’t ask why. We ask: why the heck not?”

The release video for Portal 64’s “First Slice”

Lambert’s video details how he got Portal looking so danged good on an N64. The gun, for example, required a complete rebuild of its polygonal parts so that it could react to firing, disappear when brought up to a wall instead of clipping into it, and eventually reflect environmental lighting. Rounding out the portals required some work, too, with more to be done to smooth out the seeing-yourself “Portal effect.”

To try it out, you’ll need a copy of Portal on PC (Windows). Grab the “portal_pak_000.vpk” file from inside the game’s folder, load it onto Lambert’s custom patcher, and you’ll get back a file you can load into almost any N64 emulator. Not all emulators can provide the full Portal experience by default; I had more luck with Ares than with Project 64, for instance.

  • “It’s just so much better,” Lambert says of the latest version of the portal gun.

    Valve/James Lambert

  • The “Portal Effect,” as seen inside the Ares N64 emulator.

    Valve/James Lambert

  • Remember, this is the N64 platform running a game released at least five years after the console’s general life cycle ended.

    Valve/James Lambert

  • How that familiar title screen looks, circa 2000-ish.

    Valve/James Lambert

  • On the Project 64 emulator, I couldn’t see through the portals.

    Valve/James Lambert

  • A bit more polygonal flavor for you. Note that I bumped the resolution way, way up from the N64’s original for these latter screenshots.

    Valve/James Lambert

How does it run? Like the nicest game I ever played on Nintendo’s early-days-of-3D console. It does a lot to prove that Portal is just a wonderful game with a killer mechanic, regardless of how nice you can make the walls. But the game is also a great candidate for this kind of treatment. The sterile, gray, straight-angled walls of an Aperture testing chamber play nicely with the N64’s relatively limited texture memory and harsh shapes.

Lambert has a Patreon running now, and support does a few things for him. It allows him to pay a video editor for his YouTube announcements and regular updates, it could pay for a graphics artist to polish up the work he’s done by himself on the game, and it could even free him up to work full-time on Portal 64 and other N64-related projects.

His fans are already showing their appreciation. One of them, going by “Lucas Dash,” helped create a box and cartridge for the game. Another, “Bloody Kieren,” created an entire Portal 64-themed N64 console and controller. These people have put serious energy into imagining a world where Valve produced Portal in a completely different manner and perhaps fundamentally reshaped our timeline—and I respect that.

Portal 64 is an N64 demake of Valve’s classic, now available as a “First Slice” Read More »