hellgate Following up on word of major layoffs at Flagship Studios, multiple reports are circulating on the Internet that the Hellgate: London developer has shut down and that all employees have been let go.

While both Kotaku and Voodoo Extreme report of the closure, Flagship community manager Taylor Balbi has denied these reports, saying that the company is still afloat. Quite interestingly, subscribers to Hellgate have been unable to cancel their subscriptions for the past day, according to Flagshipped.

If the studio closes, the Mythos intellectual property will go to Korean company HanbitSoft, with Hellgate going to Comerica Bank as part of a past loan agreement.

Tags: Business, PC