With Hellgate: London (PC) and Mythos (PC) developer Flagship Studios having laid off most of its staff and halted work on the free-to-play action-RPG Mythos, those responsible for Mythos have formed a new development company, Runic Games.

The team "intends to continue to use their expertise in the Action-RPG MMO genre to create the best games in this market," according to the press release, with more details due "in the coming days."

As with Flagship, the Runic staff involves numerous action-RPG veterans, including Fate (PC) creator and Mythos project director Travis Baldree, as well as Max Schaefer, co-founder of Diablo creator Blizzard North and Mythos executive producer.

While Flagship is essentially shut down, work on Mythos and Hellgate: London support are expected to continue through Korean publisher T3, which holds a controlling stake in former Flagship business partner HanbitSoft.