Artifact is a new Dota 2-themed card game that Valve has been working on, but it isn't the only new game the company has been developing. In early 2017 Valve confirmed it was working on a single player game and later that year we learned it was working on three fully-fledged VR titles. He explicitly said that it's "the first of several games" coming from the studio.
Newell gave some background on Valve's projects from the last few years, like SteamVR and the Vive headset, explaining that the company was anxious about the PC heading in the direction of an iPhone-esque closed ecosystem.
As for why Valve moved away from games, Newell frankly said he was concerned about PCs becoming more of a closed system.
It's impossible for Valve to take about software with fans immediately jumping to Half-Life 3.
This new hardware knowledge, alongside the software prowess that the Valve has, will result in more than just brand new video games from Valve. Sure, that means a solid level of production quality when the game eventually releases, but future releases are probably still at least half a decade a way based on Valve's standard development speed. Either way, though, it sounds like Valve is back in the games business.
Is this a good news? "We aren't going to be talking about it today", he said, "but sort of the big thing, the new arrow we have in our quiver, really, is our ability to develop hardware and software simultaneously".
"We've always been a little bit jealous of companies like Nintendo". He can introduce new capabilities like motion input because he controls both of those things. Valve saw the likes of Microsoft and Facebook (with the Oculus purchase) attempting to build closed ecosystems in Windows and VR and Valve wanted to head that off at the pass.
Valve or Newell did not say anything about Half-Life 3 at any point during the presentation. "So that is something we've been jealous of, and that's something that you'll see us taking advantage of subsequently". Since the release of Dota 2, Valve's gaming efforts have been focused mostly on supporting it and Team Fortress 2.