Half Life: Episode 4 was being developed by Arkane studios but it is now cancelled

A report has put up information about the “Half Life 2: Episode 4 project” rumoured to be titled as “Return to Ravenholm” that was being developed by Arkane Studios. The game is now reported as cancelled.
Valve time’s source provided screenshots of the cancelled game.

Valve’s Marc Laidlaw confirmed the existence of the Episode 4 project last year while speaking to Lambda Generation.

During the interview, March said the following:

“We are big fans of Arkane and wanted to come up with a project we could work on together. We threw ideas around, they built some cool stuff, but we eventually decided that it didn’t make sense to pursue it at the time. As I recall, we felt like a lot of the staples of Ravenholm – headcrabs and zombies! – were pretty much played out, and the fact that it would have to take place sometime before the end of Episode 2 (so as not to advance beyond where Valve had pushed the story) was a creative constraint that would hamper the project… and Arkane.”

One part of these leaked pictures that raised genuine questions was the new  HUD counter function on the screenshots called “Absorption”.

Via: PC Gamer