According to this Voodoo Extreme report, all Flagship Studios staff have been laid off and the Hellgate developer’s office will be officially closed down today. From the piece:
Word of the studio closure reached Korean distributor HanbitSoft, leading to the release of a statement regarding intellectual property control and the subsequent clarification by their American lawyers that included the following sentence: “It is unfortunate that Flagship turned down additional investments HanbitSoft offered to make that would have allowed it to keep its doors open.”
It would now appear that the firm has completely run out of steam, will all staff fired, IP lost, offices closed.
Flagship Studios: we salute you.