Polygon is reporting that Silicon Knights still exists, though it is down to just a handful of employees. The company reportedly unloaded its office equipment and game assets, and has closed its offices in St. Catharines, Ontario. Last summer the company reportedly laid off most of its staff and then a core group of Silicon Knights employees including SK founder Denis Dyack created a brand new studio called Precursor Games.
Meanwhile Silicon Knights' chief financial officer Mike Mays, tells Polygon that the few remaining Silicon Knights employees are "very busy" and the studio is "definitely alive." While the studio may be a shadow of its former self, the company has not filed for bankruptcy, according to Polygon who confirmed that fact with David Smith, president and co-founder of Personal Bankruptcy Canada Inc.
As for Precursor Games, it claims that it has no affiliation with Silicon Knights, despite hiring the studios' core group of developers.
"Silicon Knights was selling off extra assets to laid-off employees and we, along with others, purchased some of them," Precursor Games CEO Paul Caporicci told Polygon. "Like so many others who have been laid off in this difficult economy, we are simply trying to turn a tough situation into something positive. This helps gives us an opportunity with Shadow of the Eternals to give the gamers something that have been wanting."
Caporicci also emphasized that the company is not a party to the Epic Games lawsuit against Silicon Knights, which recently put the studio on the hook for $4.45 million judgment that favored Epic related to Too Human and licensing Unreal Engine 3.
"We are a completely separate and independent entity and always have been," Caporicci said. "Precursor is not and never has been a party to that case, and is not involved in it whatsoever. We purchased completely wiped clean machines, that is all. There is no basis for any liability or any claim against Precursor Games."
Check out Polygon's extensive report for even more details on this story.