The development team at Blue Omega, responsible for the Unreal mod-turned-game Damnation (PC, 360, PS3), has been entirely laid off.

"The entire Blue Omega team was laid off today (well, starting Friday)," wrote former Omega programmer Geoff Rowland on his Twitter account last week.

Legal documents dug up by Shacknews also show that Blue Omega's demise was prefaced by an ugly period involving multiple subcontractors and lawsuits.

Blue Omega had hired two developers in 2007, Velvetelvis Studios and Point of View, to do contract work on Damnation--relationships which both ended in legal disputes.

One lawsuit filed by Blue Omega on January 20 shows that Damnation publisher Codemasters had at one time forcefully removed the developer from... Read more

With Blue Omega's mod-inspired shooter Damnation (PC, PS3, X360) hitting stores within the next few days, publisher Codemasters has issued some new screenshots.

While the few reviews of Damnation published thus far has been rather harsh, those in Europe and the UK will be able to make up their own minds tomorrow, May 22.

And though the retail PC, PlayStation 3 and Xbox 360 editions won't head off to North American stores until May 27, the Steam edition is unlocking tomorrow, and packs a free copy of Free Radical's shooter Second Sight as a pre-order bonus.

Remember when everyone thought Valve was destroying videogames through its nefarious Steam? Damnation's Prescott Standard Industries (PSI) operates in much the same way, but its steam is used to power robots and artillery--and is, in fact, evil.

Damnation hits the PC, Xbox 360 and PlayStation 3 late this month.

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A new Damnation developer diary and screenshots show off the steampunk platforming shooter's acrobatic movement and offer a teasing glimpse at its co-op multiplayer.

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Damnation began life as an Unreal Tournament 2004 mod, which placed second in Epic Games' 2004 Make Something Unreal contest. And has a jet trike... Read more

In a new Damnation trailer, developer Blue Omega Entertainment reveals its level design process for the dizzying steampunk-influenced platformer-shooter.

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Ogle the results in these new screenshots of the PC, Xbox 360 and PlayStation 3 title.

Published by Codemasters, Damnation is due out in Europe May 22. No date has been confirmed for the North American release, though GameStop currently lists May 26.

Codemasters sends along a few new screenshots of Damnation, showcasing more of the western steampunk shooter currently in development at Blue Omega. Originally expected to arrive late last year, Damnation--first conceived as a UT2004 mod--is now slated to hit PC, PlayStation 3, and Xbox 360 by the end of June 2009.

Publisher Codemasters has delayed two of its holiday titles, Liquid Entertainment's action-RPG Rise of the Argonauts and Blue Omega's vertical shooter Damnation.

While Rise of the Argonauts will miss its projected November release, Codemasters told Eurogamer that it still hopes to ship the PC, PlayStation 3 and Xbox 360 RPG by Christmas. A demo will not be released, as the studio believes a limited demonstration of the game's sprawling story would not do it justice.

Damnation, however, has been pushed out of this year and is now expected to hit PC, PS3 and 360 in early 2009. All three platforms will see a downloadable demo of the vertical action game prior to its retail debut.

"[Damnation] will be much stronger and better as a result [of the delay], and will also give people time to get all the pre-holiday releases out the way--ready for the fresh (and vertical) gaming experience that Damnation offers," Eurogamer was informed.

A slew of new screenshots and a pair of trailers have arrived for Blue Omega's vertically-oriented shooter Damnation (PC, PS3, 360) featuring something unique: a really cheerful narrator.

Originally conceived as an Unreal Tournament 2004 mod, the Codemasters-published steampunk-fantasy-western game is set to arrive later this year.

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For a preview of the single-player game, check below... Read more

Publisher Codemasters has issued the following trailer and screenshots from Blue Omega's open world-esque shooter Damnation (PC, PS3, 360), meant to highlight the "verticality" of the upcoming holiday release.

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With the Leipzig Games Convention in full swing, publisher Codemasters has unleashed several new screenshot batches from Blue Omega's vertical steampunk shooter Damnation (PC, PS3, 360).

The media includes a sole shot of the PC version, along with single-player pictures and multiplayer images.

Originally crafted as a Unreal Tournament 2004 mod, Damnation hits retail this winter.

An earlier version of this story incorrectly stated that the PC screenshot was running in Windows Vista, an error that stemmed from the description of the image as a "vista shot." Shacknews apologizes for the confusion.

Publisher Codemasters has provided a new trailer and some new screenshots from Damnation (PC, PS3, 360), Omega Blue's vertical-oriented action shooter.

Originally a "steampunk fantasy-western" Unreal Tournament 2004 mod, Damnation has been beefed-up for its standalone release, which is expected later this year.

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A beefed-up version of Blue Omega's Unreal Tournament 2004 mod Damnation will receive a separate retail release later this year, publisher Codemasters has revealed. The project prototype placed second in Epic Games' 2004 Make Something Unreal Contest.

Once again handled by Blue Omega, the game will retain its original title in the transition to retail, where it is slated to appear as a stand-alone release on PC, PlayStation 3 and Xbox 360.

Described as a "steampunk fantasy-western" at the time of its initial release, the latest evolution of the vertically-oriented shooter promises "frenetic combat, daredevil acrobatics, and high-octane vehicle-based stunts."

According to today's press release, each level can take up to three hours to complete, with the game's multiplayer component said to "take full advantage" of the large arenas.