A short while back, as mentioned in Flagship Sinks, the studio had pretty much dropped everyone from the company. Now the Seattle branch has come up from the depths and reformed itself into Runic Games.

Runic is headed by Travis (Fate) Baldree and Max (Blizzard North) Schaefer. Flagship Seattle was the group working on Mythos. Does this mean Mythos is still alive? That’s a good question, with no answer as yet.

The company has a website up, and a small announcement about the formation of the new studio. It mentions future projects, but no specifics. There is no other information on the site otherwise.

This might mean that Runic was created to continue development on Mythos, once the Hanbitsoft/Flagship IP business is settled. Or it just could be that Travis, et al. have decided to do their own startup, and that has nothing to do with the game. Only time will tell.

Runic Games website