Half-Life 2 developer Valve Software is remaining unsurprisingly cagey in conversations about Half-Life 2: Episode 3. Speaking with G4, the company's managing director Gabe Newell said, "There are very good reasons why we're not talking about Episode 3, which I can't talk about yet."

When pressed on the possibility of hearing more about the game by the end of 2009, Newell downright dismisses the question and, instead, chooses to speak about the "rhythm" the team working on Episode 3 is developing. Does that mean Valve's working on the long-awaited rhythm/music component to Half-Life 2? We can only dream.

[Via Big Download]

We've found some fairly unwise applications for $500 in the past, including (but not limited to) a few pyramid scheme investments and a number of unused gym memberships -- if only we'd followed the example of the upstart indie filmographers at Purchase Brothers, who recently spent five Benjamins on an extremely worthwhile cause: Producing the first two episodes of a Half-Life 2-inspired miniseries, titled Escape from City 17.

The Purchase Brothers recently dropped the first episode onto an unsuspecting internet -- we've got it posted after the jump. If you've played the series (we find it difficult to believe there are people who haven't, at this point), you really need to check it out. A touch of naughty language and a healthy dose of gunshootery might make it a bit NSFW, but we think you'll agree -- it's worth risking your employment to watch this video with all available haste.

[Via DailyGamesNews]

PrimePlus has a fairly interesting piece about the current state of black characters in video games. The editorial maintains a very moderate approach to the charged subject, covering the differences between Western and Eastern development, along with how black characters have been portrayed over the years.

The piece mostly focuses on upcoming titles and games from the last decade, like Mass Effect, Half-Life 2, Gears of War and GTA: San Andreas. Without getting "politically correct" or preachy, the editorial notes that representation isn't an "exclusive concern to the population of black individuals." It points out that "more socially imaginative avenues of inspiration" would be welcome, which is something we can agree about.

[Via Edge]

If you're a fan of PC games, then of course you've heard of the Source engine. It powers Half-Life 2, which is the bee's knees. Well, an ambitious bunch has decided to use the Source engine to code a new Mario Kart racing game, Mario Kart Source. The best part about this project is that the team is looking at all of the previous games in the series and is attempting to take just the best bits for their new game. Our verdict? Awesome.

Sadly, Nintendo won't likely be as excited to hear about the project, so we're sure they'll step in at some point or another and intervene.

[Via Go Nintendo]

Put down that blood-soaked cleaver. After quizzing 2,670 "frequent" gamers and conducting four different experiments with more than 300 university undergraduates, researchers at University of Rochester discovered that, cool as it may be, violence doesn't make games more fun. Except, we assume, for those players who, you know, abhor puppy dogs and rainbows in what they play.

The findings were based on what researchers described as a "good deal of violent content" in games such as Team Fortress 2 (alright), Halo 3 (we're with you so far) and World of Warcraft (okay, you lost us). According to a report by the Canadian Press, one portion of the study involved using a modified version of Half-Life 2 with brutality ratcheted up and another with violence nerfed, after which scholars found that "on average, violent content didn't add to motivation for play."

Only about 5 percent of respondents showed a preference for violent games, individuals who were later quietly taken into the back room and summarily beaten to death with spoons. Or so we're told.

Half-Life application Garry's Mod celebrated its two-year anniversary of being on Steam last week. On his blog, creator Garry Newman celebrated by divulging the sales figures of the software so far on Steam: 312,541 copies. At about $10 per copy, that amounts to over $3 million. Not too shabby for the 26-year old English developer -- even if Valve takes a piece of the pie. Maybe now he can make a suit of money.

Speaking of Valve, who as a general rule is very secretive with its sales figures (especially regarding Steam), the company has released its worldwide lifetime-to-date retail sales (via Gamasutra). Pre-Steam release Half-Life is on top at 9.3 million, followed by Half-Life 2 at 6.5m and Counter-Strike at 4.2m. These figures don't include Steam sales, which CEO Gabe Newell has said he expects to typically surpass retail sales. Full list after the break.

It's been over ten years since Valve's Half-Life was released on PC, changing FPS gaming forever. In 2009, the fan-made Black Mesa will do more than just revisit the classic Valve game – from the looks of this newly released trailer, Black Mesa will reimagine the game with modern tech and modern production values. (Update: The project was originally called Black Mesa Source, but Valve requested a name change to not as confuse it with an official Valve project.)

The spirit of Black Mesa is true to the original; however, we're stunned by the ambitious goals for this project. The new character models and textures used in this Source Engine-powered mod urge us to give them money. The addition of multiplayer modes, such as co-op, make us think Valve will downright buy the team (if they haven't already!).

Black Mesa won't require Half-Life: Source to play. So long as you have any Source Engine game on your PC, you'll be able to download and play this amazing total conversion when it comes out.

[Thanks, Andrew H.!]

Even more terrible news, folks: CERN, the group responsible for the Large Hadron Collider, have only received one crowbar. In a message to Joystiq, "Large Hadron Rap" creator alpinekat (who also happens to work with CERN on the project) told us, "To my knowledge, there has been only one crowbar sent to CERN. I tried to track down that man, but he's impossible to find."

"That man" she is referring to is the Gordon Freeman, of Half-Life infamy, we saw in the picture above. The Large Hadron Collider is currently halted until Spring 2009 due to a "magnet failure" ... or was it? With a supposed malfunction and a missing Gordon Freeman, we need not worry: at least he's got a crowbar.

In their most recent weekly news update, Valve announced that starting next week, Steam will begin hosting certain user-created mods of Source engine titles such as Half-Life 2 and Team Fortress 2. Owners of any Source title will be able to download these mods for free -- what's more, Valve has promised automatic updates and stat tracking for the mods they add to the download service.

The first five mods to be highlighted by Steam are Age of Chivalry, a medieval HL2 mod (pictured above); Synergy, another mod for HL2 which adds a co-op mode to the campaign; D.I.P.R.I.P., a multiplayer vehicular combat game; Zombie Panic, a spiritual precursor to Left 4 Dead; and Insurgency, a "total conversion" mod that takes players out of City 17, and places them on a modern battlefield. Sadly, our Source-based Burgertime mod didn't make the cut. Hopefully Valve will get wise and pick it up with the next batch.

[Via Big Download]

Actually, we've just had our second viewing of "The Combine Interview," which re-imagines Cruise's Scientology diatribe as a scary statement of purpose from an anonymous member of the Combine. And now, we think it puts the Combine in a new light, as the one force on earth capable of taming Maverick himself (Kelly McGillis notwithstanding).

Rather than crank out another Tom Cruise gag (we've got plenty of them, we assure you) we'll opt to mention how well-made and creepy the short film actually is, and how Valve should really already have Tom Hall on the payroll. Take a look after the jump and see if you don't agree.

[Via Digg]

Part of this year's Into the Pixel collection is a sketch from "Half Life EP3" (wonder what that could be), coming to Xbox 360, PC and PlayStation 3. We're not exactly surprised to learn there's concept art for Episode 3, but it's still nice to a glimpse. We're still not betting on a surprise E3 performance. Check out the highlights for today:

Joystiquery
BigDownload plays conference-wide PC bingo
DS Fanboy Lite: July 5 - July 11
Joystiq Podcast 057 - Girls or vacations edition
Nintendo E3 2008 press conference: Let's play bingo
This Week in Review is preparing for the storm
WRUP: One million polygons per second edition

News
Mainstream jumps on Xbox 360 price cut bandwagon
505 Games sinks its teeth into new DS Buffy game
Major features cut from Warhammer Online
Sega announces console-specific RTS in Stormrise
Midway launches online arcade, digital storefront
Don't be sad, but a Far Cry 2 demo isn't happening
Variety: Microsoft to show 'singing game' at E3 (read: Lips)
We just noticed: Rhythm Tengoku Gold coming to Japan July 31
Sony CFO: PS3 'plan is to not reduce the price'
Flagship Studios confirms layoffs, extent unknown
Ion reveals $299.99 price for premium Rock Band drums
MTV Games finds Konami's Rock Band lawsuit 'surprising'

Rumors & Speculation
Rumor: Motus Games' Darwin is Xbox 360's motion controller
Rumor: Animal Crossing, Punch-Out!! Wii being revealed at E3
Rumor: Xbox 360's 'Lips' microphone, box art leaked

Culture & Community
Bethesda to host post-apocalyptic film festival in August

Half-Life 2: Episode 3. The mere mention of the game makes our inner Valve-loving, Combine-hating, Crowbar-swinging heart go aflutter. That's why when mention of actual Valve supplied Episode 3 "Advisor" concept artwork appearing at E3's Into the Pixel art exhibition, we began to weep with excitement. Then we realized that the artwork had the descriptor reading "Platforms: PC, PS3 and Xbox 360". Our weeps soon turned into a joyous outburst of all out waterfall tears. Episode 3, it may be revealed at E3, but is guaranteed to eventually be hitting the 360. Yippy!

[Via IGN]

Although Valve's distaste of the PS3 is well-known, the Half-Life series has still found its way to Sony hardware courtesy of EA. It looks like the franchise will continue on PS3 as well, as this initial piece of Episode Three concept art reveals. The piece, by Valve artists Ted Backman, Jeremy Bennett and Tristian Reidford, shows an ominous advisor from Episode One and Two flying forward at Gordon Freeman in a stunning cavern. We can't grasp any real details on Valve's upcoming finale to the Half-Life 2 saga, but the platforms listed clearly include the PS3 as well.

Check out Into the Pixel for a high-res version of this piece. PS3 fans would also take note to check out the spectacular high-res WipEout HD art also available in their gallery.

[Thanks, MC Fresh Beatz! Via Shacknews]