Oh dear. Just when you thought that things couldn't get any worse for Silicon Knights (who laid off all but five of their employees following allegations of shady business practices and lacklustre games) it looks like their unsuccessful lawsuit against Epic Games has backfired spectacularly. According to a newly-discovered courthouse document, Dyack and crew are legally obliged to destroy all source code and unsold copies of every game they've developed using the Unreal Engine.
Before next month.
Silicon Knight's legal action against Epic Games started back in 2007, which essentially blaming Epic for spending money on the Gears Of War franchise rather than Unreal Engine development. This ostensibly lead to problems with the engine that impacted on Too Human's quality and budget.
Sadly for Silicon Knights, the lawsuit failed, and backfired big style. According to case court documents [found by NeoGAF user Xenon via EG], the studio has been compelled to destroy all software they developed using Unreal Engine 3 - including all source code and unsold copies of Too Human, X-Men Destiny, The Sandman, The Box and Siren In the Maelstrom. They'll have to do it at their own expense before December 10th.
'Ouch' doesn't even begin to cover it. Still, the value of Too Human is about to skyrocket...
Last month, reports emerged that Silicon Knights secretly diverted resources and developers away from Activision-backed X-Men Legends to develop a pitch demo for Eternal Darkness II, leading to two hopeless products and a tarnished reputation.