Facepunch Studios Announces New License with Steam to Join the Engine Market

The spiritual successor to Garry's Mod is officially arriving, as s&box was announced by Facepunch Studios, and it's set to release very soon. This in-Steam game engine is built on Source 2, and it allows creators to come up with all sorts of experiences, sharing it with the world.

However, it has grown a little bit beyond the scope that players have been anticipating, as Garry has been working in the background to create a license with Valve. As mentioned in the s&box Update 26.03.25, we learn that Facepunch Studios has successfully made a deal with Valve to turn the "game" into proper software.

Joining the market and competing against the likes of Unity, Godot, and Unreal Engine 5, s&box will now officially be offering a standalone feature. With the license signed the week of posting, players will now be able to export their games created within the software and publish them directly as a Steam game, and this is without owing any fees to either Facepunch Studios or Valve.

It's a big shock, as Valve and Facepunch Studios coming together to create a brand-new engine wasn't something that players had been expecting. Yet, a new, and affordable, option amidst the controversies that Unity has had and Epic Games (creators of Unreal Engine 5), it's a welcome — and convenient — change of pace.

It's currently a work-in-progress with a select few people, with the first game expected to come out using s&box as an engine to be My Summer Cottage. Developed and published by Small Fish, it's a title where players take on the role of a Finnish after losing their job.

s&box becoming an official engine is pretty big news, and it'll come with all-unique features that players can engage with. For those who wish to check it out, the spiritual successor to Garry's Mod will release on the 28th of April 2026, and it might become the choice engine of many developers around the world.