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7/14/08 at 8:09pm
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http://www.1up.com/do/newsStory?cId=3168695

Quote:
Flagship Studios Shuts Its Doors Hellgate: London developer lays off all employees, loses IPs.

By Kat Bailey, 07/14/2008 at 15:25
 It looks like even some of the industry's top talent wasn't enough to keep Flagship Studios from going to the bottom. Voodoo Extreme is reporting that the home of executives who had once had a hand in classic Blizzard titles like WarCraft 2, StarCraft and Diablo, closed its doors Saturday. All employees were sent home with 30 days of pay, which came directly from the pockets of executives Bill Roper, Max and Erich Schaefer, and the future of their intellectual properties is now up in the air.
Flagship is best known for its action role-playing game Hellgate: London, which was highly anticipated thanks to the pedigree of the developers involved in the project. But mixed reviews, launch problems and a retail reception that didn't meet expectations took its toll, and rumors began to surface of staff cuts and employees "leaving in droves." On the Something Awful forums, one employee from Flagship subsidiary Ping0 wrote, "I feel bad for some of the talented guys on the staff who busted rear end to try and get a game out on a ridiculous schedule, but I think we all kind of saw this coming after the game came out and basically bombed. Flagship bit off way more than they could chew and made a lot of development and structural mistakes in how they went about things."

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I knew hellgate wasn't doing that well but holy crap.
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