Flagship Studios’ co-founder Max Schaefer has finally conceded and announced that the Hellgate: London developer is “for all intents and purposes” closed. What does that mean? It means that they’re still open so they can “take care of the final affairs.”

Flagship Studios has been in turmoil for weeks now, which culminated with the infamous “We’re not dead, we just fired everyone” proclamation. Recently the developer was forced to cancel development on their MMORPG Mythos, and both the rights to Mythos and Hellgate: London have since been picked up by T3 Entertainment.

It’s never fun to report the closing of a studio. Hopefully the staff of the now-defunct Blizzard North will be able to bounce back in the future. Lord knows they have the talent.

Flagship Studios has halted development on their free MMORPG Mythos. Possibly because making a free game is a bad idea when you’re out of money.

Combatting the many, many rumors that the studio has shut down and that they have lost the rights to Hellgate: London, Flagship Studios CEO Bill Roper has issued a statement that says that Flagship Studios has not shut down — only that they’ve fired everybody.