1up reports that Valve is apparently developing a title for the Xbox 360
. From the article: "In addition to enhancing their custom Source engine with improvements taking advantage of the Xbox 360 hardware, Valve's focusing on incorporating future releases into Microsoft's Xbox Live service. Xbox Live sure would make an enormous amount of sense with the studio's episodic content plans for Half-Life 2."
As the article notes, this is a big turnaround for outspoken developer Gabe Newell.