Valve has announced a new product named Source Filmmaker.
Source Filmmaker can be used to create movies inside the Source gaming engine.
They use this tool themselves to create such movies and now you can get access to the same technology to create your own movies.
Valve is currently inviting beta testers to join this program to get access to this tool. They plan to make it available publicly for free to anyone wants it.
Valve spoke about this new project:
The Source Filmmaker (SFM) is the movie-making tool built and used by us here at Valve to make movies inside the Source game engine. Because the SFM uses the same assets as the game, anything that exists in the game can be used in the movie, and vice versa. By utilizing the hardware rendering power of a modern gaming PC, the SFM allows storytellers to work in a what-you-see-is-what-you-get environment so they can iterate in the context of what it will feel like for the final audience.