Silicon Knights has gotten another heaping helping of bad news: a court order to cease production of and destroy all games that use the Unreal Engine. The document, signed by district court judge James C. Dever III on Wednesday, requires that the company destroy all versions of game code that used Unreal Engine 3 by no later than December 10, 2012.

Read more: Destroy game code, recall and destroy remaining copies »

Troubled developer Silicon Knights has confirmed additional layoffs following its loss against Epic Games. The X-Men Destiny developer sued Epic Games for troubles it faced working with the Unreal Engine during development of Too Human. Not only did Silicon Knights lose the case, Epic Games' countersuit will cost the company nearly $5 million in damages.

Although Silicon Knights has expressed intent on appealing the decision, it appears the company is continuing to downsize. "Silicon Knights has unfortunately had to lay off a small number of people," studio head Denis Dyack confirmed.

Read more: Focusing on 'future opportunities' »

Silicon Knights sued Epic Games in 2007 for "technical problems" with the now widely-adopted Unreal Engine. The Too Human developer had modified the middleware so much that it called it the "Silicon Knights Engine." The original claim asked for $58 million in damages, however after the judge threw out Silicon Knights' "unreliable and speculative" damage assessment, the developer now faces a significantly reduced judgment.

Read more: Judge got tired of waiting »

A federal judge's ruling in the ongoing "Too Human" lawsuit brought against Epic Games does not bode well for developer Silicon Knights. (The case was granted a federal jury hearing back in May of this year.) In it, Chief District Judge James Dever III, excludes the testimony of Silicon Knights' expert witness Terry Lloyd, a Certified Public Accountant and Chartered Financial Analyst retained to provide an expert opinion on the damages alleged in the suit.

Read more: Advantage - Epic Games »

Silicon Knights, developer of games like Too Human, Metal Gear Solid: Twin Snakes, and Eternal Darkness, is rumored to have undergone "massive layoffs." The Canadian development studio, having just shipped X-Men Destiny, has apparently laid off all but 25 employees today.

While it's common for contract employees to be terminated once a game ships, the alleged size of the cuts points to something far more drastic.

Read more: Denis Dyack's wife supposedly laid off »

Despite a lukewarm critical reception, developer Silicon Knights is keen on completing the planned Too Human trilogy. "We intend to finish the trilogy but no comment beyond that..." Silicon Knights boss Denis Dyack told Industry Gamers.

Released on August 19, 2008, Too Human ended the month of August with sales under the 200,000 unit mark. According to the NPD Group, Too Human achieved sales of 168,200 units during its release month. Too Human was the eighth best-selling title of the month. Read more »

The legal dispute between Silicon Knights and Epic Games has been fairly quiet since subpoenas were issued in 2008. Now things have started rumbling again, thanks to recent court action that allows the Too Human developer to present its case before a federal jury.

Kotaku reports that a federal court has granted Silicon Knights the ability to present many of its allegations against Epic Games to a federal jury. Those include fraud, negligent misrepresentation, unfair competition, breach of contract, and breach of warranty. The court did dismiss some claims, including intentional interference and unjust enrichment. Read more »

Silicon Knights president and founder Denis Dyack commented on the legal struggle between the Too Human (360) and Unreal Engine purveyors Epic Games, expressing optimism that "justice will be done" in the ongoing court battle.

"The trial is proceeding," Dyack told Develop. "We feel really good about our claims, and we're hopeful that justice will be done. We all feel really strongly that they have defrauded us, and a major portion of the industry." Read more »

Silicon Knights founder and president Denis Dyack believes that the success of the studio's upcoming Xbox 360 action-RPG Too Human could have a profound effect on Niagara, Ontario, where the studio is based.

"If Too Human does what we expect it will [in the marketplace], then it can change the world for St. Catharines and Niagara," Dyack told the St. Catharines Standard. Read more »

With Silicon Knights' long-in-development action-RPG Too Human (360) due out next Tuesday, publisher Microsoft has issued new footage showcasing character Hemdall.

Publisher Microsoft today announced that Silicon Knights' oft-delayed action-RPG Too Human has entered the manufacturing process and will hit the Xbox 360 on August 19.

Microsoft further revealed that the online-enabled Too Human demo has seen over 900,000 downloads since it hit the Xbox Live Marketplace the week of E3 2008 on July 14. The demo has since become one of the most played titles on Xbox Live. Read more »

Microsoft has announced that it will provide coverage of next week's E3 Media and Business Summit via the Xbox 360's Xbox Live online service, offering a playable demo of Silicon Knights' Too Human (360) and other downloads.

Rounded up as E3: Bringing It Home, the new content will kick off on Monday, July 14. In addition to the Too Human demo, Xbox 360 owners can expect playable versions of other games on the E3 show floor, similar to previous Bringing It Home events. Videos, Xbox 360 dashboard themes and other content will also be on offer. Read more »

A new development diary video from Silicon Knights' upcoming action RPG Too Human (360), showcasing elements from the game's cooperative combat.

The oft-delayed title will finally be unleashed on store shelves August 19. For more on Too Human, check out our hands-on impressions. Read more »

Microsoft has released new screenshots of Silicon Knights' long-in-development action-RPG Too Human (X360), giving a deeper look at the game's enemy roster and combat.

The game's infamously lengthy development will finally see a release to retail shelves August 19. For more on the game, check out our hands-on impressions.

The good news? Silicon Knights is finally bringing its long, long in development action RPG Too Human (X360) to retailers on August 19.

The bad? The player count for the game's co-op mode has been halved. Initially planned to allow four players, it now only supports two-person play. For a closer look at co-op in Too Human, scope out this video publisher Microsoft sent along: Read more »