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Source is pretty expensive due to the mandatory Havok fee.

Does Source ship nowadays with a recent Havok physics library nowadays?

I heard they used to use an decade old physics library that just got bought by Havok company in the meantime and has nothing to do with the Havok physic engines everyone knows.

No, it's still using Valve's fork of that old library (Ipion Virtual Physics) that's referred in the documentation to as VPhysics.

What are the numbers?

Is Havok really mandatory? Wouldn't it be possible to replace Havok with Bullet or some other related system?

$25,000. Valve doesn't distribute Source without it, as far as I know. Replacing Havok would take a lot of effort which is better spent elsewhere.

Valve has been working on a physics engine called Rubikon since at least 2012. [1] Maybe it will be used to fully replace Havok in Source 2.

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[1] https://www.youtube.com/watch?v=YTC0V0LWeGI

[1] http://media.steampowered.com/apps/valve/2014/Sergiy_Migdals...

[1] http://media.steampowered.com/apps/valve/2015/Migdalskiy_Ser...

Source 2 is another matter altogether. Valve doesn't share it with third-party developers at all, whether you pay or not. There were plans back in 2015 to make it free with the condition that any game made with it has to be published to Steam non-exclusively, but that still hasn't happened yet.

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