"In Half-Life, it was a model built around the MP5sd, which is the silenced version, which is funny because it wasn’t silent in the game. That was always something that drove me crazy, but people just didn't like it silenced." For Half-Life 2, Ted brought in the successor, the MP7. “It was brought to the market just recently. It is actually kind of a revolutionary gun. In the real world, it uses kind of a smaller caliber bullet than the MP5 does. This one has a custom round that goes along with it, and we have further modified it to have it be more like its predecessor and have a small grenade launcher underneath it."
Ted Backman, Uncorrected Proof, page 327.
They wanted a fancier more futuristic gun, mp5 was in almost every game and movie of early 00s.