Doug Lombardi of VALVe Software just announced, that Arkane Studios' next project will also use the Source Enginve developed by VALVe for Half-Life². A releasedate for the game isn't announced until now.

The whole press release can be found by reading on...

Rectificcation:
The Source Engine will certainly not be included in Arx Fatalis since this game is already out. In the next game of Arkane Studios, the Source Engine will be included. This game still has no name. Again, sorry for the confusion.

ARKANE STUDIOS DEVELOPING ON SOURCE

Arx Fatalis Creator Licenses Valve's Source Engine

February 3, 2004 – Valve, developer of best selling games and leading edge technologies, today announced a Source Engine licensing partnership with Arkane Studios, creators of Arx Fatalis. Already in development, Arkane's Source-based project is targeted for the PC.

Valve's Source Engine Technology, the same used to create Half-Life 2, gives developers the ability to create expressive digital actors and physically simulated worlds. It also offers advanced rendering capabilities and the industry's most convincing artificial intelligence.

"It is a very comfortable feeling for a developer to be able to concentrate on the content of its game and have access to a set of stunning features and capabilities," said Raphael Colantonio, CEO of Arkane Studios. "Source is solid, performant and extremely complete in terms of the amount of innovative features. But more important, it is also open and flexible enough to allow us to build creatively upon, without having to bare the technological risks. Working with Valve is not only a fan's dream, but also an excellent opportunity to be one of the fortunate developers in the world to benefit from the Source engine's most impressive features."

Arkane Studios joins Troika Games as the second announced Source licensee. Source is designed for the creation of games and MODs from all genres, and contains a host of proprietary tools for level editing, character direction and more.

"The Half-Life technology was pushed well beyond our expectations by the MOD development community," said Gabe Newell, Valve's managing director. "This provided invaluable knowledge for producing a cutting edge, flexible, and easy to use set of tools and engine technology."

About Valve
Founded in 1996, Valve creates entertainment software titles, including Half-Life®, Counter-StrikeTM, and Team Fortress®. Valve's portfolio accounts for over 10 million retail units sold worldwide, and over 88% of the online action market. More information about Valve is available through the company's Web site at www.valvesoftware.com.

About Arkane Studios
Arkane Studios is an independent game development studio created in 1999 and based in Lyon, France. The studio released its first game worldwide in 2002: Arx Fatalis for the PC, which was critically acclaimed and received several awards, the team itself was nominee as 'Rookie studio of the year' at the GDC awards. The studio focuses on developing innovative action-immersive-RPGs. For more information, visit the studio's Web site www.arkane-studios.com.