HanbitSoft has lashed out against Flagship Studios in the Korean press, in the wake of the recent turbulence at the San Francisco-based game development studio calling them “selfish and irresponsible”. Details are as follows:
Bill Roper and Directors of Flagship Studios Bear Responsibility
- HanbitSoft making good progress in securing intellectual property rights for Hellgate: London
- HanbitSoft is preparing for a lawsuit against Bill Roper and the founding directors of Flagship Studios.
Last weekend, Flagship Studios announced that former employees were fired and HanbitSoft mentioned that all measures were proceeding as planned to the benefit of players (in Korea) to ensure that continued service of Hellgate: London would be seamless despite the current problems at its development studio. In addition, HanbitSoft holds the executives of Flagship Studios fully responsible for the incident towards the rights and interests of the users and stakeholders, including shareholders and other parties involved. HanbitSoft is considering taking strong legal action against Flagship Studios in order to take them to task for their responsibilities.
HanbitSoft does not expect to have any difficulty in securing the exclusive intellectual property rights related to Mythos. HanbitSoft is prepared to deal with Comerica bank in a local visit to them next week in order to secure and acquire the intellectual property rights of Hellgate: London. HanbitSoft believes that the game has nothing to do with the aforementioned bank as HanbitSoft already holds the rights to the game in Asia. HanbitSoft believes it has a strong possibility of acquiring the intellectual property of Hellgate: London in the United States and the rest of the world.
HanbitSoft stated that they will be devising a plan to continue work on the games with local (Korean) game developers in order to see the game through.
HanbitSoft’s CEO Kim Ki-Young stated, “Hellgate: London has a strong possibility of being ‘reborn’ into an excellent game with an outstanding product life,” he continued to say that “With more than 500 people at its disposal, both in-house and outsourced contracts who are veteran developers of every genre ranging from casual games to hardcore MMORPGs, we are ready to recreate Hellgate: London into an excellent game.”
He continued, “We don’t have to recruit existing developers, however if we could do so, we could shorten the time for analysis and developing for users. Although we are trying our best, since Flagship Studios doesn’t want to cooperate, we have no choice.”
According to HanbitSoft, they offered several methods and the means to keep Flagship alive in consideration of the users, but Flagship majorly lacked in effort. Hanbitsoft already has offered large amounts of investments but Flagship replied with ridiculous counter-offers and the negotiations went south. Even so, HanbitSoft continued to make investment offers which were all rejected, leading to the lay-offs of all of the Flagship employees.
HanbitSoft also stated, “Flagship not only lacked effort, but were only looking for personal gain. Firing all of the Flagship employees in order to protect the personal interests of its founding members only shows how selfish and irresponsible they are.”
Flagship Studios is an incorporated company. Hence if any problems occur within this company, it doesn’t affect the finances of any of Flagship Studios’ founders.
HanbitSoft said they are going to take legal proceedings as Flagship Studios is legally responsible for a serious breach of duty in not protecting their stockholder’s rights. The legal proceedings will be done against Flagship’s founders and management people for their intellectual property. HanbitSoft currently owns a 9.5% stake in Flagship Studios.
Korean news website TheGames.co.kr got in touch with HanbitSoft chief executive, Kim Ki-young regarding the recent reports of Flagship Studios’ demise and asked him to clarify the situation with Hellgate: London and Mythos.
As it’s known to the general public that Flagship Studios dismissed developers of ‘Hellgate: London’ and closed down the office, HanbitSoft is trying to prepare countermeasures.
According to game industry news on the 14th, HanbitSoft is checking whether the rumor is true that Flagship Studios has determined to dismiss employees. HanbitSoft announced that this incident is totally unrelated with ‘Hellgate: London’ and ‘Mythos’ services.
HanbitSoft owns intellectual property rights of ‘Mythos’, and ‘Hellgate: London’ is also provided to investors of Flagship Studios and HanbitSoft, so it’s impossible that Flagship Studios receives investments from third parties, or sign contracts with any other companies regarding these products.
HanbitSoft said they have been preparing various business models, required game development and other improvements to compensate for Flagship Studios’ crisis.
According to Kim Ki-young of HanbitSoft, he said that ‘if we can take intellectual property rights of relevant products from Flagship Studios, we have confidence to develop the games ourselves based on T3 Entertainment’s advanced technology’ and ‘we believe we can service fresh and interesting games to online gamers by getting intellectual property rights and development. This crisis could be an opportunity for us’.
HanbitSoft is about to start thorough examination to get intellectual property rights for ‘Hellgate: London’ and ‘Mythos’ once Flagship Studios petitions for bankruptcy
HanbitSoft said although they have suggested mutual conditions regarding investments in Flagship Studios, Flagship requested that HanbitSoft provide better terms, leading to hesitation on HanbitSoft’ part in aiding Flagship.
In breaking news, Korean news website TheGames.co.kr reports that HanbitSoft is taking full control over the Hellgate: London intellectual property from Flagship Studios. At present, HanbitSoft co-owns the IP, which was developed by Flagship Studios and published by Electronic Arts in Europe and the United States.
HanbitSoft states that the reason it is pursuing this course of action is because “It is hard for us to accept Flagship Studios’ requests for continued support in capital and funding any longer and because Flagship was being difficult”, and because it co-owns a direct stake in the IP, it therefore “has a say in reviewing and determining any course of action to be taken with Hellgate: London.”
HanbitSoft is expected to take full control over the IP. HanbitSoft goes on to state that in doing so, it will be able to “properly manage and develop Hellgate: London into a good game with proper content”, with its own in-house team of developers.
The report further states that the online service of Hellgate: London, which started in January 15, 2008 acquired 100,000 early users within the first two weeks of operation during which time HanbitSoft earned 3 billion won (approximately 3 million USD) for the sales of Hellgate: London in Korea. However, the number of players in the game significantly declined due to the lack of general out-of-the-box content and the sparsity of ongoing content updates. Since its Open Beta launch, Hellgate: London has gone from being the 9th most played game in Korea to 52nd post-commercial launch. (Source)
It’s anyone’s guess at this point as to what will happen to the Hellgate: London development team at Flagship Studios in San Francisco and how this will affect the development of Mythos, Flagship’s other game.
UPDATE: Flagship Studios has sent Hellgate Guru an official response via e-mail with regards to the story:
This story is an outright lie. We have no idea where they are getting their information from and have asked legal counsel to pursue the issue. We are mystified by Hanbitsoft’s conclusions and any attempt to take over the IP will be met with a strong and swift response, to “illegally take over the IP”. All right title and interest in Hellgate; London resides in Flagship Financing, LLC a wholly-owned subsidiary of Flagship Studios. We are outraged that Hanbitsoft would attempt to completely tarnish the reputation of its most vital developer. Hanbitsoft’s new management clearly does not understand the terms of its relationship with Flagship.
Because the story is already public, we feel that we would be doing a great disservice to the public by removing it from existence. We do however feel that it is only fair for us to publish an official response from Flagship Studios itself.
UPDATE #2: Respected industry website GamaSutra has confirmed massive layoffs are taking place at Flagship Studios today.
Gamasutra has received confirmation from a Flagship Studios representative that the Hellgate: London developer has seen significant staff cuts.
This morning, Gamasutra obtained information from a source close to the company indicating that staff at both the Flagship development team as well as online services subsidiary Ping0 were let go. Both companies operate out of the same building.
UPDATE #3: Someone claiming to be a lawyer representing HanbitSoft has requested for us to remove the story. We are ready to comply, but only if other websites and news sites reporting the story agree to do so as well:
We are U.S. attorneys for HanbitSoft. Your story is a repeat of a quote that is not accurate and we request that you pull it down. At the request of Flagship’s attorney, we must correct the record:
Please understand that the facts are (1) HanbitSoft is an exclusive licensee of both Hellgate and Mythos in Asia, with rights to sublicense the games; (2) in addition, HanbitSoft is a secured creditor who has been pledged the Mythos (but not the Hellgate) intellectual property as collateral for a loan; (3) Comerica, another secured lender, has been pledged the Hellgate intellectual property as its collateral for a loan; (4) Flagship Studios does not currently own the intellectual properties to either game, which are held in separate companies subject to the security interests of lenders, and Flagship Studios’ interest in those companies is also pledged to its lenders; (5) it is unfortunate that Flagship turned down additional investments HanbitSoft offered to make that would have allowed it to keep its doors open, but HanbitSoft hopes to work with Comerica and some of the team at Flagship to see if there is a way to continue to generate content to keep Hellgate online in Asia and to finish the development of Mythos.
UPDATE #4: Several of our readers have sent in word that the Subscription options within the Accounts page on the official website have disappeared, as has the ability to unsubscribe.
UPDATE #5: VE3D got in touch with Scapes
In a telephone conversation Flagship’s Community Manager, Evan “Scapes” Berman, refused to comment on the current situation at the studio, or whether he was still in the employment of the company. Instead, he insisted that I direct all questions to ex-Blizzard man, Bill Roper. As of this time neither Bill Roper, Tricia Gray (Flagship’s PR representative) or HanbitSoft’s lawyers have responded to email inquiries.
Well, not really. But they are on the official Korean website, which means that we can officially post them now!
I can’t embed them as they are in Windows Media Player, but if you go to the link you can either open them from there or download them.
The first video on the list is the Patch 2 trailer, but now in a much higher resolution and the second is the 1.3 trailer, also in a much higher resolution (1280 by 720 for both) than before (however it has Korean subtitles now).
EDIT: Just to add, the video is titled China Joy 2008, which means it’s being shown at the large China Joy game’s even in China. So guess the marketing for the game is starting with Patch 2 over there in time for the launch which I would think is some time soon.
This article just made it’s way through my Google Alerts not too long ago:
A bold entrepreneur’s ambition of making South Korea the vanguard of the computer game industry has ended as an unaccomplished mission.
HanbitSoft CEO Kim Young-man on Monday sold two thirds of his shares to a relatively unknown game company named T3 Entertainment, making it the new largest shareholder of Hanbit.
We know Hanbitsoft as being the publishers of Hellgate London in Korea.
Kim, who founded Hanbit in 1999 as a local distributor of hit game “StarCraft,” said he will remain as the chairman for a while. But when reporters asked him about Hanbit’s future on Wednesday, he passively handed over the questions to Kim Ki-young, the chief executive of T3.
“I decided to sell the shares because the two companies share the same vision of becoming a leader in the global game market,” the outgoing CEO said in a press conference held on Wednesday.
It’s interesting to note that Hanbitsoft made such losses last year when they went with Hellgate London and while the article does not specifically blame Hellgate alone, it seems to imply that it was one of the strong factors for the loss.
As the next step, Kim decided to finance a massive game project called “Hellgate: London,” which was developed by the same team that created “StarCraft.” He expected it would be a new milestone of Korean game industry’s history. But the new game didn’t do very well, yet, and Hanbit recorded a 7.2 billion won loss last year.
Now having yielded about two thirds of his shares to the newcomers from T3, Kim showed that he no longer has the same power he used to have.
When a reporter asked whether there will be downsizing of the organization, the old Hanbit boss said the company will need more manpower, not downsizing. But an executive of T3 immediately rebutted his remark by saying “T3 aims to have a small but strong organization. We will reduce the organization where there is a need.”
Sad to see the company have to sell a lot of it’s shares as it seemed to be quite a strong force in the Korean market. Good luck to their new ownership though and hopefully they can do well in the future with whatever game projects they decide to take on. Also good luck to Kim with whatever he decides to do.
GameMeca once again has early concept art from the new Abyss chronicles. The text that goes along with them just says that they are concept art from what Google translator comes up with.
Joystiq, VideoGamer.com and a few other sites have an article up that talks about how Hellgate London did in Korea in tems of sales and accounts that signed up for it.
Bill Roper and company have announced that in the two weeks since the Korean launch of the Hellgate beta more than a million accounts have been registered. According to Flagship, this makes the MMO the most successful online game launch in Korea in the past three years.
Hellgate’s beta officially kicked off in Korea on January 15, and according to Korean online game tracking service Gametrics, the game quickly found an audiences with gamers in PC Cafes, ranking ninth among online games, fifth among RPGs, and was the most popular beta being played. This was followed by a commercial release on February 22, a launch that Flagship boasts achieved “record sales”
UPDATE: Kotaku also has the news up, but they follow it with an official press release:
Flagship Studios’ HellgateTM: London Celebrates The Most Successful Online Korean Launch In Three Years
San Francisco, CA (April 11th, 2008) - Flagship Studios today announced that its action role-playing game Hellgate: London has become the most successful online video game launch in Korea of the past three years with over 1 million accounts registered within the first two weeks of its open beta test. Hellgate: London is the first online game in over three years to use a monthly subscription business model.
After launching the open beta on January 15th, Hellgate: London quickly rose to the ninth most played online game, fifth most popular RPG and most popular online beta game in PC Cafes*, with over 1 million accounts. Hellgate: London was released commercially on February 22nd, and achieved record sales in its first week of presales.
“To become the most successful launch in Korea for over three years is an incredible achievement,” said Bill Roper, CEO of Flagship Studios. “This milestone wouldn’t have been possible for us to achieve without the incredible support of our publishing partner, Hanbitsoft, and our dedicated community in Korea. We look forward to expanding the Hellgate universe and building upon this success in the future.”
“Flagship Studios are well aware of how the Asian market operates very differently to the Western territories” said Alex Kim, CEO of HanbitSoft, “By listening to players’ feedback and through constant updates to the game, Hellgate: London will continue to be an incredible success throughout Asia.”
Hellgate: London combines the depth of role-playing games and the action of first-person shooter titles, while offering infinite playability with dynamically generated levels, items, enemies, and events. Whether online or off, a player creates a heroic character, completes quests, and battles through innumerable hordes of demons to advance through experience levels and branching skill paths. A robust, flexible skill and spell system, highly customizable appearances, and a massive variety of randomly generated equipment allow players to create their own unique hero.
For more information please visit the official Hellgate: London site at www.hellgatelondon.com
*According to Gametrics and Game Report
We’ll leave this one as a rumour for now, as I am not sure if the pictures are real or just ones with a Hellgate Logo plastered over them. But going by Game Meca’s usual record, I would say the pictures are real.
They reveal a new monster and new area, and some text that has been roughly translated by Google Translator states that this new area is rumoured for patch 1.3 which is due on the 14th of April. So yes, until we get official word from FSS take this with a grain of salt.
Global Forum Update helgeyiteu April 14th peojyeoit a rumor that the matter.
Patch 1.3 regard to the new map, perhaps, would not disclose. Prudent to speculate …
Boseumop added to the spirit of a fallen seusyat marketing of the clergy in the Holy Land and keonsepahteu
The new map of the Holy Land is estimated to degenerate.
GameMeca has recently been reporting on a number of events in Korea which some of the Hellgate employees have attended (I think it’s Max and Erich there, but I could be wrong). There appear to be interviews with the employees, but these are in Korean so while links are provided below, there is no translation for them.
The thing that will get most of you excited though is a whole bunch of concept art pictures that have also surfaced on Game Meca from what appears to be the same event.
Hellgate Guru was founded in mid-2005 and has ever since been one of the most popular fan sites and forums devoted to Hellgate: London, catering to a wide range of interests, as well as having a dedicated team of staff members who keep the website full of constant updates, news and generate activity and hype around the game. More
