Troubled PC action-RPG Hellgate: London will soon be entirely free-to-play in Asia, Korean publisher HanbitSoft has confirmed, with the game's international fate unknown.

Gamasutra claims the that game "will continue on here [in the West]", though HanbitSoft's official blog does not specify territories for the forthcoming updates.

North American and European publisher Namco Bandai previously said that it would shut down the multiplayer servers in those territories on January 31, 2009, adding that "the servers will never exist in the US and EU again" as Hanbit does not have the rights.

According to Namco, HanbitSoft "owns the IP and rights to publish anywhere other then the US and EU." Following the closure of Hellgate developer Flagship, Hanbit described itself as "the publisher and distributor of Hellgate: London in Asia."

Korean publisher HanbitSoft has revealed that it is working on an downloadable expansion for Hellgate: London, and confirmed that it now holds the rights to the troubled PC action-RPG franchise.

The update is meant to "surpass The Abyss Chronicles" content that arrived earlier this year, according to a HanbitSoft statement noticed by Gamasutra. The studio noted that development is occurring in its US studio, likely referring to the new development studio recently founded by HanbitSoft majority shareholder T3 Entertainment.

The expansion will be distributed through the HanbitSoft website. North American co-publisher Namco Bandai recently noted that it will shut down the game's online servers come February 2009, which follows the closure of Hellgate developer Flagship.

Though HanbitSoft did not directly address the online server shutdown, the studio expressed its hope to deliver "good news shortly" and its intention to "continue developing the world's best game."

Update: Flagship community manager Taylor Balbi has denied Voodoo Extreme's report that he confirmed the studio's closure.

"I didn't say this at all, and I have never spoken to [Andrew Burnes at Voodoo Extreme] or recall ever speaking to [Andrew Burnes at Voodoo Extreme] about anything ever," Balbi wrote on the company's forums. "I'm sorry, but this news article is just not from me."

Meanwhile, multiple Flagship staff members--including Guy Somberg, Patrick Harris, Amol Deshpande, Chris Schillinger, Jesse Jones and Ray Li--have updated their LinkedIn accounts to show they are no longer with the company.

In curious related news, Hellgate: London subscribers have been unable to cancel their subscriptions for the past day, according to Flaggshipped.

Original Story: Following up on word of significant layoffs at Hellgate: London (PC) developer Flagship Studios, multiple reports are now circulating that the studio has shut down and all employees have been let go.

Left, Hellgate: London. Right, Mythos.

A Kotaku report on the studo's closure cites an anonymous source, while Voodoo Extreme sources Flagship community manager Taylor Balbi. Balbi apparently claimed that three of the studio's executives used their personal funds to provide employees with 30 days of pay.

Formed by the ex-Blizzard North staff responsible for the acclaimed Diablo series, Flagship released its first title, the action-RPG Hellgate: London, last fall... Read more