Silicon Knights has responded to Epic Games' rebuttal and motion to dismiss the Canadian developer's lawsuit regarding its grievances with the Unreal Engine 3 during the development of Too Human (X360).

Filed by Silicon Knights on September 7, the 29-page document specifically addresses Epic's attempt to get the case thrown out and its claims that the company has nothing to gain if it delivers lacking technology to licensees.

"For Epic to attempt to dispute the merit of those allegations [of the original suit] under the auspices of a motion to dismiss is improper," it reads, according to Next-Gen.biz. "Therefore, Epic’s Motion to dismiss should be denied in its entirety, Epic should be ordered to answer the Complaint, and this case should proceed to discovery and trial.

"The profits Epic assured for itself by having Gears of War as the marquee title for the Xbox 360 dwarf any gain Epic would receive from Silicon Knights purchasing a subsequent licenses for the Engine," it continues. Silicon Knights has accused Epic of holding back Unreal Engine 3 optimizations ... Read more

There's an interview with Mark Rein on Eurogamer, chatting with the Epic Games VP at the Leipzig Games Convention. Topics include Gears of War, id Software's new technology, Unreal Engine 3 and the Silicon Knights complaint.

In a surprising move, Epic Games today announced it had acquired a majority interest in Poland-based studio People Can Fly, the creator of the Painkiller series and recent developer of the Gears of War PC port.

The deal apparently came about when People Can Fly was evaluating Epic's Unreal Engine 3 for a new project. Epic then hired the developer for Gears of War PC, and began working with them on a new IP.

"PCF showed us their early prototypes within only a few weeks and we were totally blown away," said Epic vice president Mark Rein. "The quality of their work was extremely high, and knew we had to find a way to work more closely with them in the future."

"Their work was outstanding," added Epic president Dr. Michael Capps. "The multiplayer levels they created for Gears PC look as good or better than the original. How could we not jump at the opportunity to work together on a long-term basis?"

Unreal Engine 3 developers wishing to allow cross-platform multiplayer between PC and PlayStation 3 users now have a streamlined solution to integreate the feature. Multiplayer technology provider GameSpy today announced it has joined Epic's Integrated Partners Program for UE3, making the features available to licensees.

"GameSpy is committed to working together with Epic to address a broad range of needs for the connected gamer, including multiplayer matchmaking, in-game and out-of-game messaging, persistent player communities, and competition systems," said Jamie Berger of GameSpy parent IGN Entertainment.

Following the announcement, Epic Games confirmed to Shacknews that GameSpy's announcement of cross-platform play is available to licensees of both Unreal Engine 3 and GameSpy's technology, but noted Epic has not yet decided whether it will feature cross-platform multiplayer in its own Unreal Tournament 3.

With id Software slowly unveiling more of its internal projects, including the Mad Max-esque Rage and the id Tech 5 engine that powers it, the studio that once led the PC engine licensing game is sending a clear message that it intends a return to form. As part of a longer discussion at QuakeCon, the rest of which will be published on Shacknews in the coming days, I spoke with id Software CEO Todd Hollenshead about his company's revitalized push into the high-end tech licensing world--a world most would agree is currently largely occupied by Epic and its widely-licensed Unreal Engine 3.

Hollenshead spoke on the flexibility of the technology, id's changing attitude towards developer support and tools, when the engine will be ready--and he even painted a notable contrast to rival Epic, which has been in the news lately for licensing-related matters.

"In terms of an engine licensing philosophy, Epic has a philosophy to license to everyone they can. That will not be our strategy. We will go with a lower number of what we think are high-value licensees and games, and try to service those, and not overcast our resources in providing support. ...If you look at Quake as a reference point, we would rather have Call of Duty, Medal of Honor, and Half-Life as our licensees than thirty games nobody remembers."
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Update: Legal documents issued by Epic's attorneys at the firm of Hunton & Williams amount to a bristling rebuttal of Silicon Knights' original motion.

"Silicon Knights wants to take Epic's Licensed Technology, pay nothing for it, and use it any way it pleases," the counter-motion reads. "Having exploited Epic's intellectual property to its advantage, Silicon Knights now seeks to renege on its payment obligations under the License Agreement. It is Silicon Knights, not Epic, that has engaged in deceit, infringement of Epic's intellectual property rights, breach of contract, and unfair business practices."

Responding directly to the point that Epic had neglected its licensees in favor of working on its own Unreal Engine 3-powered title Gears of War (PC, X360), the document reads, "By employing its synergistic model... Read more

I don't think anyone was really expecting that Grand Theft Auto IV delay, but you gotta give the Activision executives credit for trying to slip that Metallica thing by us when we were supposed to be looking the other way. Oh, and just as Maarten foretold last week, zombies totally invaded QuakeCon.

Meanwhile in brief-land, we have news of downloadable demos and a Blast Factor add-on for PS3, a Fatal Inertia demo on Xbox Live, a new vice president of production at Secret Level, Insomniac sharing PS3 development tips, and the new Fallout 3 (PC, PS3, X360) site. ... Read more

Today's delicious roundup of news bytes includes Left 4 Dead at QuakeCon, an update for City of Heroes, new DLC on the Xbox Live Marketplace, games at Comic-Con, word on the Oddworld Stranger's Wrath (Xbox) soundtrack, and a status update for Factor 5's Lair (PS3).

On the subject of Comic-Con, our own Chris Remo will be moderating a panel about episodic gaming with Penny Arcade, Telltale Games, and Hothead Games. Titled "Episodic Games and Comics--Made for Each Other," it begins Thursday at 11:30 AM in room 1AB and lasts for an hour. Telltale will be announcing new details on the recently announced Sam & Max Season Two (PC), so if you happen to be at the event, this might be worthy of your time. ... Read more

In our second ShackCast, we discuss Silicon Knights' recent lawsuit against Epic Games regarding Unreal Engine 3, and provide even more behind-the-scenes details on the situation from developer sources.

We also discuss this week's Metal Gear Solid 4 (PS3) gameplay video, Chris Faylor gives some impressions of Atlus's Shin Megami Tensei: Persona 3 (PS2) and Mistwalker's Lost Odyssey (X360). We've got discussion of the roleplaying game genre as well as video game trailers and marketing in games such as Irrational's BioShock (PC, X360) and BioWare's Mass Effect (X360). Finally, we mention some of the games out this week and next, accompanied by our opinions of several of them.

Play now, download, access it through iTunes (should update momentarily), subscribe to the RSS feed, or check out the full breakdown. ... Read more

In the wake of last week's explosive news regarding Too Human developer Silicon Knights' lawsuit against Epic Games, Shacknews spoke to several developers with Unreal Engine experience, asking them to weigh in on the lawsuit and on licensing the Unreal Engine 3 in general. Do Silicon Knights' claims of negligence hold water? How do other devs feel about the engine? Read on and find out.

"It is true that Epic was very late in delivering key features to UE3 during the development of Gears of War," he said. "They had promised one of the most important feature of UE3, the multi-threaded renderer, many many months before it was finally delivered. Since the key to having fast performances on the Xbox 360 is multi-threading, it made the engine somewhat subpar if you wanted to run your game with good graphics on a console."
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(Updated/reorganized) Silicon Knights, developer of upcoming Microsoft-published Xbox 360 action game Too Human, has sued Epic Games due to grievances with Epic's handling of its widely-licensed Unreal Engine 3. News of the suit came from Epic Games, which notified the press of the legal action. Silicon Knights issued a press release, and the full lawsuit was made available by San Francisco-based law firm Krieg, Keller, Sloan, Reilley & Roman LLP. Microsoft has claimed a lack of involvement in the suit.

The thrust of the complaint seems centered around E3 2006, where Too Human was demonstrated and subsequently criticized for, as the lawsuit describes, "technical problems and generally unpolished appearance." Silicon claims that Epic withheld a "very useable version" of the Xbox 360 engine for its own purposes, only delivering a fully functional version of the software in November of that year--roughly eight months past the original March 2006 deadline.

Silicon seeks several concessions from their licensor, including a negation of the original licensing agreement, the unrestricted legal right to alter the engine, and, most significantly, forfiture of all profits gained through sales of Epic's Gears of War to Silicon Knights in the form of awarded damages.

Reads the lengthy lawsuit: "The damage to Silicon Knights... Read more

Console fans looking to play the next entry in Epic Games' multiplayer shooter series will need to wait until 2008, unless they own a PlayStation 3.

During Sony's E3 press event this morning, the company announced that both Epic's Unreal Tournament 3 (PC, PS3, X360) and Free Radical Design's shooter Haze will be console exclusives on the PlayStation 3 this year. The two titles will be debuting on the system this November. The exclusivity does not apply to the PC, as Unreal Tournament 3 will be released concurrently on the PS3 and PC.

In regards to the deal, Epic's Mark Rein was adamant that no back-alley deals were stuck with Sony to secure the release of Unreal Tournament 3 the PS3 ahead of the Xbox 360 version.

"There's nothing sinister about it. It's just the PS3 and PC version of the games are compatible, because Sony has an open-source platform," Rein said, according to Gamespot.

SCEA also announced a deal with both Midway and Epic to optimize the Unreal Engine 3 for use on the PlayStation 3. The agreement will affect all games in development that use the engine.

Following the recent formation of Recoil Games and the subsequent announcement of its first title, the sci-fi themed first person shooter Earth No More (PS3, X360, PC), I caught up with studio founder and director, Samuli Syvahuoko (pictured left). The former managing director and co-founder of Max Payne creator Remedy Entertainment, Syvahuoko has only recently returned to PC and console development after having spent six years specializing in mobile technology and games, providing him with a fresh view of the current gaming landscape.

With this in mind, we spoke on variety of topics, including the company's relationship with 3D Realms, its use of Unreal Engine 3, digital distribution, the future of the PC and console market, and the effects of piracy. Check it out.

Samuli Syvahuoko: Having been "away" from the PC/console space for several years, I was somewhat shocked to notice that--apart from eyecandy--things in games had not progressed all that much. And having always been a big fan movies and television serials (in other words great storytelling and believable characters), I started to see a clear gap that needed filling.
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Independent developer Chair Entertainment announced it has licensed Epic Games' Unreal Engine 3 for use in its PlayStation 3, Xbox 360, and PC projects, joining EA, Square Enix, Sega, Activision, Gearbox, BioWare, and just about every other developer under the sun.

As revealed earlier this year, the first Chair Entertainment title to utilize Epic's technology will be the upcoming Xbox Live Arcade underwater shooter Undertow. Based on the childhood drawings of Chair Entertainment creative director Donald Mustard, Undertow depicts fast-paced underwater battles and supports up to 16 players online. Along with the inspirational ... Read more

3D Realms' latest title is a sci-fi themed FPS named Earth No More, company co-founder Scott Miller has confirmed to Shacknews. Developed by the recently formed Recoil Games and powered by Epic's Unreal Engine 3, the game will arrive on PlayStation 3, Xbox 360, and PC in 2009.

Initial details on Earth No More surfaced in the latest issue of Game Informer, which is set to hit stores and subscribers later this week. Beginning in a small, quarantined New England town, Earth No More's antagonist comes not from space, but from nature. As a result of mankind's constant pollution of and experimentation with the environment, a growth of deadly red vines and mutating spores have overtaken the world, perverting whatever they encounter.

When reached for comment, Miller told Shacknews that ... Read more

Walt Disney Co. just can't wait to be king of the video game business.

The media giant will seek to triple their current $100 million yearly investment in the video game industry, Disney executive Thomas O. Staggs (pictured left) said on Friday. "Over the next five years or so we are ramping up to about a pace of $350 million per year in video game investment, principally consoles and hand-helds," he stated, according to the LA Times.

Last year Disney made several moves to increase its stock ... Read more

TimeGate Studios--responsible for the Kohan series and the recent F.E.A.R expansion, Extraction Point--has revealed that it is currently developing three games for unknown platforms. The company plans to announce the titles sometime this year.

"TimeGate is hard at work on three new games, each of which is poised to smash through the competition thanks to the company's ability to create engrossing new worlds and to seamlessly blend genres to deliver the best games possible," said Evolve PR director Tom Ohle, whose company now handles public relations for TimeGate.

TimeGate's website lists three games in development: two unnamed FPS projects, as well as an MMO. One of the games is likely to be the ... Read more

German site PC Games Hardware has posted an English language interview with Tim Sweeney. The Epic Games programmer is asked about Unreal Engine 3 and its use in Unreal Tournament 3.

There's a thread on the Epic Games forums, where a German article from PC Games Hardware about the technical features of Unreal Engine 3 has been translated. Included is a Q&A with Tim Sweeney about support for things like SLI/Crossfire, DirectX 10 and Vista 64. Thanks Vooodo Extreme.

TimeShift Reborn: Competing in the Post-Unreal Engine 3 World is an IGN interview with TimeShift producer Kyle Peschel, asking him about throwing out a nearly complete game and starting from scratch (we asked about that too).