An anonymous reader writes "In a Q&A session on Reddit last night with Valve's Gabe Newell, the founder confirmed that the company is in the process of getting the highly anticipated Source 2 game engine 'working well with VR.' Valve's Alex Vlachos, Senior Graphics Programmer, is apparently leading the charge. Still no word on when the engine may ship. Valve, who is openly collaborating with Oculus VR, demonstrated a VR headset prototype in January at Steam Dev Days. The company also launched a beta version of SteamVR which offers Steam's 'Big Picture' mode in a format compatible with the Oculus Rift VR headset. A developer who got to experiment with Valve's VR prototype says it's very impressive, even more so than the original Oculus VR dev kit."