Valve making a new game engine perhaps?

Valve making a new game engine perhaps?

Taken from here.

Gabe Newell: We’ve been working on Valve’s new engine stuff for a while, we’re probably just [incomprehensible, subtitled as: “waiting for a game to roll it out with”]

Fan: Is it going to be more than just an extension to Source? Is it an entirely new engine?

Gabe Newell: Yeah!

Hmmmmmm… Episode 3 anyone? 😛