Valve have officially severed all ties with its San Francisco office, according to reports from IGN. The duo team, Todd Semple and Jeff Gates struck a deal with Valve back in December last year to be under the wing of Valve while developing something that remains unclear at this current time. But now that both developers have parted ways, the duo have now formed Temple Gate Games and not only this, they are allowed to independently work on their project and continue to have their own office that Valve supplied them with. Temple Gate released this statement:

"Jeff and I are working on indie games again. We were working for Valve in a remote office in San Mateo. It turned out that there weren't many benefits for either side in that arrangement. Valve was super cool about it and is letting us continue to work on our game, and is also giving us the office."

Surprisingly Valve also chipped in and responded.

"We were big fans of their prior work. We worked with them during their startup phase, but they're independent now and still working on their game. We wish them the best of luck."

Fancy that! Usually a breakup of a titanic publisher and small development studio would mean the studio would get gobbled up to recoup losses, not in this case, this is a happy ending folks.