It’s not very often we get insight into Valve’s thought process, as the company tends to let actions speak for themselves. But at a ‘Steam Indie Connect’ event in Korea, the company says it still believes in VR, and outlined some of the challenges ahead.

We still believe in virtual reality,” Giardino said. That said, Giardino noted Steam Frame users are mostly now playing standard flatscreen games rather than VR titles.

One of VR’s biggest challenges is a ‘chicken-and-egg’ dilemma, Giardino said: developers wait for the VR market to expand, while players wait for more VR games. Meanwhile, flatscreen games continue to grow more diverse and compelling, making it more difficult to justify making VR games. That, and expensive, popular flatscreen games launch every week, which is the biggest hurdle facing VR developers, Giardino said.