SILICON KNIGHTS SUES EPIC OVER UNSATISFACTORY PERFORMANCE OF UNREAL ENGINE 3
ST. CATHARINES, ONTARIO, CANADA, July 19th, 2007 - Video game developer Silicon Knights, Inc. has filed suit against Epic Games, Inc. for breach of contract, fraud, and several other tort claims in federal court in Greenville, North Carolina. In the lawsuit, Silicon Knights alleges that it has lost revenue as a result of the considerable delay in developing its video game for the Xbox 360, Too Human, because Unreal Engine 3, a game engine licensed from Epic, did not work as Epic represented it would and, moreover, Epic has been unable or unwilling to fix it.
As Denis Dyack, President and Founder of Silicon Knights, explained, "Our strong preference is to focus on making games, not be in court. Unfortunately though, as explained in our lawsuit, we have had extensive problems with the Unreal Engine 3 that Epic has been unwilling or unable to rectify. For more than a year, we have been trying to reach an agreement with Epic to resolve these issues without resorting to litigation, but were unable to come to reasonable terms with Epic. Regrettably, we are now forced to go to court in order to achieve satisfaction. We remain hopeful, however, that we can reach a reasonable business resolution with Epic at some point."
The lawsuit further alleges that Epic in fact never intended to deliver Unreal Engine 3 as a fully functional game engine as promised. Instead, Epic collected licensing fees from Silicon Knights and others in order to fund the development of its own video game, Gears of War. "No doubt Gears is a fun and phenomenally successful game, but as we alleged in our complaint against them, we strongly believe that from the perspective of someone waiting for a game engine that Epic promised it would deliver almost two years ago, it seems pretty clear that Gears was built on the backs of the Unreal Engine licensees. We certainly stand by our allegations in the lawsuit that instead of using our licensing fees to develop and support the Unreal Engine 3, Epic used that money to build Gears," said Mr. Dyack.
Based on Epic's website and press releases, it appears that Epic has sold licenses to Unreal Engine 3 to over 150 video game developers and publishers. For more information about this lawsuit, contact Chris Holland, Partner at the law firm of Krieg, Keller, Sloan, Reilley & Roman, LLP in San Francisco, California.
