As the Flagship's Community Manager, Taylor Balbi's revelation, Flagship Studios has closed its doors according to a report by Voodoo Extreme,will all the staff of Ping0 and Flagship Studios made redundant. This notification was out at a company meeting to employees and the offices officially closed on Saturday. It was known that all employees will be provided one month of pay by personalty of three studio's top.

The developing team of Hellgate may be changed by HanbitSoft, with the ex-members let go from the company.

"Word of the studio closure reached Korean distributor HanbitSoft, leading to the release of a statement regarding intellectual property control and the subsequent clarification by their American lawyers that included the following sentence: "It is unfortunate that Flagship turned down additional investments HanbitSoft offered to make that would have allowed it to keep its doors open."

As also referenced in the legal release, HanbitSoft hopes to independently continue development of Mythos, to which it owns the rights thanks to a loan agreement enacted with Flagship. Comerica now owns the Hellgate: London rights through a similar loan agreement, and will likely continue Asian development with HanbitSoft. As for English-language releases of the two games, it is possible that the Asian companies would continue development, though in the case of Hellgate: London it is unlikely (Mythos has a far better business model and is attracting extremely positive press). Alternatively, the rights may be sold to Electronic Arts or other interested parties."

Here comes to be a headline! A rumor was spreaded on web that Flagship could re-form into a new company, as early as this week! Okey, all we can do just cross our fingers and, wait. 

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Resource: Voodoo Extreme