In 1994, he moved with his family to Seattle and supposedly "enjoyed" retirement since 1998. In a 2006 interview, Al revealed that he was not actually retired, but had spent well over a year secretly designing a new game Sam Suede: Undercover Exposure, an action comedy game developed by iBase Entertainment, which he co-founded with Ken Wegrzyn. Unable to locate a publisher to promote and distribute Sam Suede, iBase Entertainment shut down in December 2006. Following this setback, Lowe expressed serious doubts whether he'd ever reenter the gaming industry again. As of January 2007, the website for Sam Suede developer iBase Entertainment lists the project as postponed pending acquisition of additional development funding.
In 2010, Lowe produced and directed Al Lowe's Comedy Club, developed by The Binary Mill for iOS devices. He has since been recruited by Replay Games to work on high-definition remakes of six of the first seven Leisure Suit Larry games (the fourth game in the series was never developed). On December 11, 2013 it was announced that Lowe has left Replay Games and returned to retirement. Where Replay Games' official statement claimed that Lowe's departure was amicable, Lowe himself disputed this, stating that the parting did not happen on good terms.
Lowe has played saxophone professionally since age 13 and still performs with local jazz bands, including MOJO. He has been a model railroader for several decades and is a member of the Board of Directors of the 4th Division of the Pacific Northwest Region of the National Model Railroad Association. In November 2007, he was the guest of honor at the Alternative Party 2007 in Helsinki, Finland and played saxophone live with David Hasselhoff Big Band. He also runs a website, Al Lowe's Humor Site, and CyberJoke 3000, a daily joke mailing list.