Silicon Knights Ordered to Destroy All Unreal-Powered Games

Canadian developer Silicon Knights can’t catch a break: this morning, Joystiq reports that the studio behind last year’s flop X-Men: Destiny has been ordered by courts to recall and destroy every copy of its games that were made using Epic’s Unreal Engine. The order is part of the judgment against Silicon Knights in their failed bid to sue Epic over allegations of breach of contract concerning their license of the Unreal Engine. After many years, Silicon Knights lost the case and was ordered to pay Unreal $4.5 million in damages—a number that’s been increased to $9 million.

According to the post, the court’s destroy order calls for all unsold copies of Too Human and X-Men: Destiny to be recalled, while all code the developer’s built utilizing the Unreal Engine must also be destroyed. Unfinished projects, too, are included in the destroy order…all conditions of Epic’s countersuit against Silicon Knights, which alleged that SK had illegally created games using the Unreal Engine 3. Earlier this year, Silicon Knights lost its suit, while Epic won theirs.

Said Epic Games on the ruling:

“Epic Games appreciates the court’s careful consideration of the motion and is cgratified by the order.”

Clearly this is yet another blow to the Canadian developer that many speculate is already at death’s door. I wouldn’t be surprised if we heard that the company was filing for bankruptcy before the end of the year. “This is the way the world ends: This is the way the world ends: This is the way the world ends: Not with a bang but a whimper.”

Via Joystiq