2:26 Valve's Gabe Newell is now on the stage to show us an updated trailer for Half-Life 2: Episode 2. There are some new images of a strider and smaller walker-like enemies decimating a group of human fighters in the forest. Otherwise, this is pretty much the same trailer we saw at the end of Episode 1.

Newell talks about getting players out of City 17 in the next episode (duh), as well as giving them new weapons and new enemies to use them against. Looks like the Source engine will be getting a lot of upgrades in Ep 2. A "cinematic physics" system is coming from former Weta Digital employee Gray Horsfield, along with new particle systems, better foliage, and more.

2:34 Newell's gone on to discuss the episodic-gaming business model. Short version: Valve likes it. It will even let them explore new types of gameplay in a new upcoming game called Portal (which seems to be a working title). It looks like they took the portal concept from Prey and slapped it on a gun--you can shoot them into walls and floors to solve all kinds of crazy puzzles, teleporting objects around and stuff. Looks like a total mindbender.

TEAM FORTRESS 2. WHERE DID THIS COME FROM? Hey, they're still making it! It's got a totally exaggerated, crazy art style now. Looks a little like Spy vs. Spy or No One Lives Forever, kind of a '60s spy feel. It's going to be the included multiplayer mode in Episode 2! Class-based, etc. You know the drill. Great news for shooter fans. We all thought this game was dead years ago.

And hey, Half-Life 2: Ep 2 will ship for Xbox 360 and PS3 simultaneously with the PC. The console games will basically include all of the HL2 back content, so you'll get everything on there that you can get on the PC. Who expected all this Valve news?