It’s looking like Hellgate: London, and probably Mythos, too, are in big trouble. For that matter, Flagship Studios appears to be in big trouble.

News broke earlier today that there have been big layoffs at Flagship. Gamasutra was able to obtain confirmation, but no numbers or specifics on how many or who is being let go.

Then Hanbitsoft, the Korean licensee for HellGate, announced it was taking over the IP. This was followed by a release from Flagship, calling the announcement a lie.

Finally (so far), the Hellgateguru site received an email from purported attorneys for Hanbitsoft, setting out the supposed agreement between Flagship and its funding parties. If that email is true, then it’s possible Flagship no longer owns (or soon won’t own) either Hellgate or Mythos.

The situation is very messy, and the layoffs could be the beginning of the end for Flagship. As for the games, only time will tell.

Hellgate saga on hellgateguru

Flagship layoffs on Gamasutra