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Rumour: Nintendo cancels Eternal Darkness 2; Fact: Silicon Knights hit by layoffs

A Human Becoming

More than a Member
Feb 4, 2007
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In February 2008, Silicon Knights was granted $500,000 by the Ontario Media Development Corporation (OMDC) through its Video Game Prototype Initiative. Using this funding, they were to create a prototype for a "third-person action/psychological thriller".

In April 2010, it was announced that the company would receive nearly $4 million through the Canadian government's Community Adjustment Fund. The purpose of the loan was to allow the hiring of 65 new staff members, who would be working on a new game targeting multiple platforms. The game was estimated to take two to five years to complete.

In July 2011, Silicon Knights was awarded $2.5 million to be distributed over five years in provincial funding to improve its technology, create new products and become a self-publishing company. The investment will allow the company to improve its technology, hire 80 new people while keeping 97 current jobs and allow the company to become "self sustaining." As of Nov 5, 2011, Silicon Knights has not received any of this funding.
 

Aaron Strife

Banned
Oct 10, 2006
26,804
3
0
Factor 5 survived because of the star wars license.
If Lair was Called Rogue Squadron 3 they would have been around longer.


?

I wouldn't have minded seeing that Rogue Squadron Trilogy thing for Wii pan out. Those were some damn fine games.
 
Aug 6, 2006
13,029
6
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I bet it was. By lucasarts who actually published their games. But their games division went through such a downsizing this generation, I'm not surprised they canceled the Rogue trilogy for wii and chose to let them die.
True, Lucasarts certainly shares some of the blame there. One more reason to dislike them... I try not to think much about how far they've fallen from their late-'90s high. :(
 

bridegur

Member
Sep 8, 2004
3,306
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What if Nintendo passed off the Eternal Darkess IP off to Retro somehow? I wonder how that would turn out.

There is no Nintendo franchise I'd rather see Retro work on less. The first Eternal Darkness was average at best; I really don't understand why people are so desperate for a sequel.
 

Neon_Icarus

Member
Jan 10, 2010
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What if Nintendo passed off the Eternal Darkess IP off to Retro somehow? I wonder how that would turn out.

While this would be nice, it's not going to happen. The only reason Nintendo probably
greenlighted ED2 anyway, was because they really needed Western exclusives (and it's
not like quality Western development studios are lining up to work with them).

Nintendo knows Retro has the talent to make a mainstream hit. The Eternal Darkness IP
doesn't have the mainstream appeal to be one. Nintendo will have Retro working on something else.
 

border

Member
Jun 7, 2004
31,945
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I can believe the layoffs.

I cannot believe that Nintendo would have funded a next-generation Eternal Darkness. The IP is over a decade old and sales of the original were quite poor by Nintendo standards (maybe mediocre by industry standards of the time).
 

Aostia

El Capitan Todd
Sep 2, 2011
18,552
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"We are scaling back to a core group and focusing all our efforts on future opportunities."

Weren't they already down to a "core group" after the layoffs back in 2011?

Yes. this sentence simply means that there is no cancellation set by Nintendo on the game. nothing more and nothing less. probably no game exist, developed by SK, up to now..
 

v1oz

Member
Apr 11, 2010
2,378
81
905
"We are scaling back to a core group and focusing all our efforts on future opportunities."

Weren't they already down to a "core group" after the layoffs back in 2011?

They keep laying off and hiring people. They can't make their minds up.
 

Skiesofwonder

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I hate to be that guy, but it seems like if SK wasn't working on a new Eternal Darkness, Dyack would of just came out and said Eternal Darkness 2 doesn't exist/they aren't working on it.
 

SmithnCo

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Feb 1, 2010
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I hate to be that guy, but it seems like if SK wasn't working on a new Eternal Darkness, Dyack would of just came out and said Eternal Darkness 2 doesn't exist/they aren't working on it.

And what else could be their "most requested IP?" Not a whole lot of options.

It would be nice if it wasn't cancelled but his statement could be taken a couple different ways.
 

Cygnus X-1

Member
Mar 7, 2007
4,626
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The big problem is my opinion now is that Nintendo still holds stock of Silicon Knights. So, they cannot ignore the situation forever.

There are two possibilities:

1) They sell the remaining stock as they did with Rare. But this is not viable and was never viable in the last years because SK kept declining after Eternal Darkness. SK's popularity among the industry is nowhere as near is it was Rare when it was sold to Microsoft. So, Nintendo would sell overall at a loss.

2) They take the same approach they did with Retro Studios when the company was led by Jeff Spangenberg and later by Steve Barcia. It was a giant mess and thus Nintendo bought entirely the company from Spangenberg, fired Steve Barcia, reorganized everything with massive layoffs, and put one of their man as president: Michael Kelbaugh. From this moment on, Nintendo was the only owner of Retro and everything went well. Indeed after that, of the five games in development only one was completed, but this one was Metroid Prime.

Bottom line: Nintendo should buy the remaining shares from Dyack and reorganize everything. Like they did with Retro. If they still haven't done that, the reason is probably because Dyack do not want to sell. I wonder for how long at this point. Either he sells, or the company will sink with him.
 

Gamer @ Heart

Member
Aug 16, 2007
13,029
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Puerto Rico
The big problem is my opinion now is that Nintendo still holds stock of Silicon Knights. So, they cannot ignore the situation forever.

There are two possibilities:

1) They sell the remaining stock as they did with Rare. But this is not viable and was never viable in the last years because SK kept declining after Eternal Darkness. SK's popularity among the industry is nowhere as near is it was Rare when it was sold to Microsoft. So, Nintendo would sell overall at a loss.

2) They take the same approach they did with Retro Studios when the company was led by Jeff Spangenberg and later by Steve Barcia. It was a giant mess and thus Nintendo bought entirely the company from Spangenberg, fired Steve Barcia, reorganized everything with massive layoffs, and put one of their man as president: Michael Kelbaugh. From this moment on, Nintendo was the only owner of Retro and everything went well. Indeed after that, of the five games in development only one was completed, but this one was Metroid Prime.

Bottom line: Nintendo should buy the remaining shares from Dyack and reorganize everything. Like they did with Retro. If they still haven't done that, the reason is probably because Dyack do not want to sell. I wonder for how long at this point. Either he sells, or the company will sink with him.

The nintendo of today doesn't do acquisitions outside of japan it seems. To much talent turnover in the west.
 

Cygnus X-1

Member
Mar 7, 2007
4,626
40
1,320
In February 2008, Silicon Knights was granted $500,000 by the Ontario Media Development Corporation (OMDC) through its Video Game Prototype Initiative. Using this funding, they were to create a prototype for a "third-person action/psychological thriller".

In April 2010, it was announced that the company would receive nearly $4 million through the Canadian government's Community Adjustment Fund. The purpose of the loan was to allow the hiring of 65 new staff members, who would be working on a new game targeting multiple platforms. The game was estimated to take two to five years to complete.

In July 2011, Silicon Knights was awarded $2.5 million to be distributed over five years in provincial funding to improve its technology, create new products and become a self-publishing company. The investment will allow the company to improve its technology, hire 80 new people while keeping 97 current jobs and allow the company to become "self sustaining." As of Nov 5, 2011, Silicon Knights has not received any of this funding.

Holy crap. That's why the Governments should stay out of private business: they kept alive a company that did not produce anything valuable during last years.

The nintendo of today doesn't do acquisitions outside of japan it seems. To much talent turnover in the west.

Agreed, but this is a special case because they already have invested in Silicon Knights long ago: either they drop the ball or they buy it entirely. If they let things remain like that, sooner or later SK will go bankruptcy and Nintendo will lose every dollar. I don't know if they would want that.
 

Forever

Banned
Jul 7, 2010
6,717
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Agreed, but this is a special case because they already have invested in Silicon Knights long ago: either they drop the ball or they buy it entirely. If they let things remain like that, sooner or later SK will go bankruptcy and Nintendo will lose every dollar. I don't know if they would want that.

It's called cutting your losses. Your way is called throwing good money after the bad.