Silicon Knights: Epic Sabotaged Us

Silicon Knights was kind enough to send along both their formal press release concerning their suit against Epic and the actual suit itself.

According to the suit, which seems more than $75,000, Epic Games misrepresented the abilities of their Unreal Engine 3 when selling the license agreement to Silicon Knights. The suit says that Epic failed to "provide a working game engine" to Silicon causing them to "experience considerable losses."

[Mucudadada]

Too Human is going to suck!

Edit: I don't see how Epic could have sabotaged them. The article does not make sense. To me it seems like lazy devs who have no idea how to run the hardware. I mean, really, did anyone have high-hopes for this game after the awful reviews the demo at last years E3 got? Oh and power of Green, spell "hole" right next time. It might make you sound more intelligent.

[Lyberator]

I hope this doesn't cause a delay.

[Vojkan]

I agree, there is a lot of RAGE in that inreview....it doesn't sounds good. Anyhow they sound like donkeys! Unreal Engine has to be the most used engine for 360/PS3 games and funny thing is that they are the only studio that has been "sabotaged" out of some many studios that use UE3.
Morons!

[power of Green]

Did you read the hole news post?. Click on the link and try it!, ITS FUN!!!.

[ShiftyLookingCow]

if what Silicon Knights is saying is true, then both PS3 and 360 are affected.

[nextgengaming18]

Will be delayed forever. I don't see this game coming out before 2009 now.

[HowarthsNJ]

Two games that come to mind are Fatal Inertia and Coded Arms. I'm sure there are others.

Sony is working with Epic on this right now.

[darkside]

I was really looking forward to this game!!!! but in the end It's going to suck donkey balls

[computer]

I hope they settle this soon =(

[Maddens Raiders]

classic.

btw - Silicon Knights is fuct. Sorry guys.

[power of Green]

Xbox 360 Tag: - NONE
PS3 Tag: - uberXan86
Mii Tag (Wii): - NONE

Hmmm?..

EDIT: below LOL...

Wouldn't it be easier to just leave it despite what console you're playing?, so when the heavy hitters come out for the 360 you'll repost your gamer tag?. I don't really care i just think some of you people lie!!!!!!...

[ShiftyLookingCow]

alright I haven't been playing much 360 recently thats why I removed it, its the same uberXan86

[TheXgamerLive]

Too Human, if anyone saw the E3 demo, was incredible, so I have faith in SK that they will rise above it all and sell 3 million copies easily.

Anf for those that don't read the post, the game is looking great and is already running on Silicone Knights own engine. They began work on there own 2 months after Epic failed to supply them with the UE3 updates that they were supposed to give, but no prob., Too Human is looking easily like a 10 out of 10.

EDIT: SK stated they already have there own engine running, and will delete all UE3 code as soon as game is finished, I think this will sit very well w/the courts considering they havent been given proper support as promissed, In other words, there will NO starting over on this game.

[nextgengaming18]

Refuse to license them the unreal engine 3 now. It is going to restart their whole development on a different engine.

[hazeblaze]

The game still looks pretty sucky to me! I was hoping that was b/c of their UE3 problems... but if the most recent vids our on their new engine then there's just no hope for this game :-(

[power of Green]

Xbox 360 Tag: - NONE
PS3 Tag: - Mucudadada
Mii Tag (Wii): - NONE

Hmmm?...

[nextgengaming18]

It is just pure spam. :(. anyways, mine is
nhh123 for xbl
nhh1 for psn :).

[Mucudadada]

That's why you have 3 bubbles, my friend.

[zonetrooper5]

The news does sound a little weird but it could be true, maybe it was a stunt to get a little hype going for Too Human. As for the picture its from kotaku.

[Xi]

pretty much
Epic released the engine to SK before it met the proper TCR's required to run a game on the 360 (TCR's are requirements that a game must be released, like initial loading times, fps for ui, etc) these were unable to be met when silicon nights began working on too human while using the ut3 engine.

[PS360PCROCKS]

wow that is crazy if true...and to the haters why don't you back up and read the story before posting...maybe Epic really did fuc* them over? it's a competitive world

[SKUD]

I love that song.

[WilliamRLBaker]

like someone said i suck at driving so ill sue ford/toyota...ect

[ShiftyLookingCow]

well I guess then we can sue God if we suck at life

[PS360PCROCKS]

haha and thank you for changing your avatar, this one is much cooler

[AllroundGamer]

i worked with the U3 engine for some time (believe it or not, i don't care), and the truth is, that's it not the most stable engine out there... why do you think Gears had so many bugs hmm?

[fopums]

wonder how this is going to turn out for both of them, gimping the engine so that SK would have trouble using it would be the ballsiest move from a developer I've ever heard of. but Timeshift has managed a change *granted it was too the unreal engine* maybe Silicon Knights can pull it off too.

hopefully :D

[Odion]

this is from Gamasutra its long but pretty much details what happened

The Main Allegations

The suit initially alleges that: "Rather than provide support to Silicon Knights and Epic’s other many licensees of the Engine, Epic intentionally and wrongfully has used the fees from those licenses to launch its own game to widespread commercial success while simultaneously sabotaging efforts by Silicon Knights and others to develop their own video games."

It goes on to detail a number of specific alleged breaches of contract, particularly related to the delivery of Xbox 360 versions of the Unreal Engine 3 code. Epic's licensing document stated that a functional version of the engine would be available within 6 months of development kits being available.

Silicon Knights claims: "The final development kit for the Xbox 360 was released in early September, 2005, such that Epic was obligated to release the functional Engine for that platform no later than March, 2006."

The suit continues: "However, that deadline came and went without Epic providing Silicon Knights with a functional version of the Engine. Indeed, it was not until much later (November, 2006, far too late for time and cost-sensitive projects like SK’s videogames) that Epic ever provided anything resembling working Xbox 360 code to its licensees. Even at that belated date, though, Epic did not provide any guidance to licensees in how to implement the code it finally released."

Epic's Own Games Taking Priority?

Another area of concentration is Epic's simultaneous development of its own titles alongside engine development. The lawsuit charges: "In particular, at the same time that Epic was supposed to be supporting its many licenses to the Engine (Silicon Knights’ among them) Epic was also racing to complete and market its own games: “Unreal Tournament 2007” and “Gears of War.""

It goes on to explain: "The support Epic had misrepresented it would provide Silicon Knights... became increasingly inconsistent as both Silicon Knights and Epic progressed toward the target launch date for their respective games. Epic has attempted to avoid its obligations under the Agreement by representing to Silicon Knights that the support,
modifications, or enhancements to the Engine – all of which are essential to the Engine’s proper function – were “game specific” and not “engine level” adaptations, and that Epic therefore need not provide them to any of its licensees, including Silicon Knights."

It's claimed: "That representation is false, as evidenced in part by the fact that Epic later provided nearly all the Gears of War code to all of its licensees, at no extra charge, in a belated effort at damage control."

Silicon Knights Now Making Own Engine

Further on in the document, it's implied that Silicon Knights is pursuing alternatives to Unreal Engine 3, despite showing multiple versions of Too Human using the engine.

It's explained: "Epic’s actions and the consequent increasing delay and cost of development of Silicon Knights’ own game caused by the unworkable Engine forced Silicon Knights in May of 2006 to embark on the time and resource intensive task of writing its own game engine, the very task it had hoped to avoid be entering the Agreement with Epic."

Later on in the suit, its added: "Silicon Knights was forced to decide whether to continue waiting for Epic to provide it with a commercially functional version of the Engine. Under the Agreement, Silicon Knights found itself in the position of being ostensibly “bound” to use Epic’s non-functional product, even though doing so would result in the breach of its obligations to its publishing partners. Rather than let that happen, in May of 2006, with the Engine two months overdue and under the looming risk of funding for Too Human drying up if no workable engine could be found, Silicon Knights had no choice but to abandon the Engine and begin creating its own game engine (“the Silicon Knights Engine”). By that time, Epic had shown neither the ability nor the intent to fulfill its obligations under the Agreement."

It's also revealed: "Progress on the Silicon Knights’ Engine continues to date and, at this time, the Silicon Knights Engine is completely independent of Epic’s Engine and certainly derives no benefit from the unworkable source code provided by Epic."

"In fact, at this juncture the Silicon Knights Engine should, at a minimum, be described under the Agreement as an “Enhancement” of Epic’s Engine, which, as defined by the Agreement, is technology developed by Silicon Knights that improves upon the Engine and is therefore the property of Silicon Knights. Moreover, as development of the Silicon Knights Engine continues, the amount of code from Epic’s Engine employed by Silicon Knights continues to decrease. After the release of Silicon Knights’ Too Human, all Epic code will be removed from the Silicon Knights Engine."

E3 2006 Issues Documented

A key point of contention is the E3 demo of Too Human, which was not well received - the suit alleges: "The final development kit for the Xbox 360 was released by Microsoft in early September, 2005, meaning that Epic was obligated to deliver a fully operable version of the Engine to Silicon Knights by no later than March, 2006."

"That delivery date is significant, since compliance by Epic would have given Silicon Knights time to prepare an appropriate demonstration version of its Microsoft Xbox 360 game, Too Human, for the very important industry trade show, E3, two months later in May, 2006."

It continues: "Epic apparently was able to achieve a very useable version of the Engine for the Xbox 360 – the version that it kept to itself, for use only on its Gears of War game (as discussed below), to the detriment of Silicon Knights and Epic’s other licensees, as set forth in more detail below. Epic’s plan to avoid its obligations and hoard all of the necessary functionalities not only harmed Silicon Knights and all of Epic’s other licensees in the industry, but also gave Epic a clearly unfair advantage in the industry."

How so? "That advantage was nowhere more evident than at E3 2006, where Gears of War was awarded “Best Game in Show” and garnered nothing but laudatory press. By contrast, Silicon Knights – one of the only other [Unreal Engine 3] developers to publicly display a playable demonstration of its game – saw Too Human roundly criticized in the videogame press for its technical problems and generally unpolished appearance. The damage to Silicon Knights caused by Epic’s misconduct was manifest, because E3 attendees were able to compare Too Human with another game running ostensibly the same game engine, Gears of War, with vastly superior results."]

Other Developers Also Allegedly Affected

The suit also charges: "Upon information and belief other game developers have been faced with a similar dilemma as Silicon Knights."

It continues: "To the extent that Epic contends any such third party developers purportedly were able to utilize the Engine during the early development cycle (when Epic had warranted Silicon Knights would have a functional engine but failed to deliver one), upon information and belief those third party developers broke away from the unworkable code that Epic had delivered and created their own distinct engines, just as Silicon Knights was forced to do."

PS3 Engine Also Involved?

Separately to the high-profile Too Human, which is Xbox 360 exclusive, Silicon Knights had licensed the engine for the PlayStation 3 and PC as well.

Though other games are not prominently mentioned in the suit, so it's unclear which game this is referring to, Sega signed a deal with Silicon Knights in 2005 for an unspecified next-generation title, and it's noted in the charges:

"More recently, Epic has breached its Agreement with Silicon Knights yet again by missing the six-month deadline for release of an Engine that works on the Playstation 3. Final development kits for that console were released in and around mid-August, 2006, making the functional Engine due to Silicon Knights in February, 2007. Silicon Knights has received no such Engine from Epic."

Silicon Knights' Allegations, Desired Results?

The final part of the lawsuit describes the specific charges Silicon Knight is making, including Fraud/Fraudulent Inducement, Negligent Misrepresentation, Intentional Interference with Contractual Relations, Intentional Interference With Prospective Economic Advantage, Breach of Warranty, offences under the North Carolina Unfair and Deceptive Trade Practices Act, Common Law Unfair Competition, Unjust Enrichment, Rescission or Reformation of Alleged Contract, and Breach of Contract, as well as Declaratory Relief.

It then asks for the following to be ruled: "(1) the Agreement between Epic and Silicon Knights for a license to the Engine is null and void; (2) Silicon Knights owes no obligations to Epic under any purported agreement by Silicon Knights to license the Engine; (3)
Silicon Knights is not required to use the Engine in developing any current or future games; (4) Silicon Knights may alter the Engine without restriction; (5) Silicon Knights is under no obligation to disclose or share any alterations Silicon Knights makes or causes to be made to the Engine with anyone, including Epic."

It continues: "(6) Silicon Knights owes no monetary or other obligations to Epic and/or any of its business partners associated with the agreement to license the Engine; (7) the game engine developed by Silicon Knights is totally independent of the Unreal Engine 3 and therefore is the sole property of Silicon Knights, or, alternatively, the game engine developed by Silicon Knights constitutes an “Enhancement” under the terms of the Agreement, and therefore is the sole property of Silicon Knights under the terms of that Agreement; and (8) Silicon Knights owes no obligations, financial or otherwise, to Epic in connection with and/or related to the Silicon Knights Engine."

The document then asks that "The Court award damages to Silicon Knights in an amount proved at trial for the damages as set forth above", and that "Epic be required to disgorge all profits obtained on its Gears of War game as a result of the misconduct set forth above."

Microsoft, Silicon Knights' Reactions

Silicon Knights' Denis Dyack, when reached for comment by industry site GameDaily BIZ, noted: "We stand behind everything in our complaint and believe it is highly unfortunate that Epic forced us into this situation. We would rather spend our time focusing on making great games, but as stated in our complaint, Epic simply refuses to acknowledge the inadequacies of the Unreal Engine 3 code it provides to its licensees, and refuses to accept the fact that its code has caused serious damage not only to Silicon Knights, but a number of other developers in the industry. We look forward to successful resolution of our claims in this court proceeding."

A statement subsequently released to Gamasutra by Silicon Knights added: "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.”"

Gamasutra also received an official statement from Microsoft regarding the lawsuit, which occurs between two of the major developers that are currently publishing games via the firm. However, it simply states: "Microsoft is not involved in or a party to this litigation, therefore has no comment."]

[Skizelli]

*** Wall of text crits for 75,000 damage ***

[FordGTGuy]

What they are saying is that EPIC deliberately sabotaged the Unreal Engine they sold to developers so that they were unable to make games that matched the performance of games like GOW. I guess were just going to have to watch this run roll out to see if they are telling the truth.

[nomad117]

and if you want to know my psn its nomad117

[etownone]

you know they are asking for all profits from gears of war!!

this can not be good, i read the whole article and the make their point come across very clear. now if other developers come out, epic is screwed.

[BADBOYEK4]

Basicly what Silicon Knights is saying,they paid Epic to use the UNREAL ENGINE which should have came with the GEARS OF WAR codes but instead they got a WATERED DOWN VERSION of the Unreal Engine that did not include the Gears Of War Codes.Epic showed Gears at E3 it looked a lot better than Silicon Knights which was also using the Unreal Engine but without the Gears Of War codes.Epic released Gears Of War sold millions and made millions and then went back and offered Silicon Knights the Gears Of War codes witch they should have had in the 1ST [email protected] Epic if this is true thats LOW DOWN especialy since Silicon Knights had to DELAY there Game twice already.

[BBsin]

I wonder how many more lawsuit will follow this one???
we could very well be seeing
"Blacksite 51 gets bad critic reviews, midway sues epic"
or
"strangle hold doesn't look quite good, developers blame UE3 engine and epic"

[Dr Pepper]

That is pretty low of Epic, assuming it is true. Their credibility could very well be damaged by this.

[bootsielon]

But almost everyone's using Unreal Engine 3. Hell, Midway is using ONLY UE3 on next-gen consoles and PC. This can be interpreted only as two things:

1. Silicon Knights, while being a good art and gameplay team, SUCKS at programming.

2. To give them the benefit of the doubt, their team was too ambitious with Too Human.

In both situations the lawsuit is sour grapes for their losses, and Epic Games can hardly be guilty of that. Seriously, they have so many companies to do with, not to mention they've made some great games and have yet some great games to launch.

As much as I want Too Human, this is Silicon Knight's problem, not Epic's.

[Dr Pepper]

You seem to be assuming it's not true. Either way, assuming is all anyone of us can do since no one will know the outcome for a while.

[ThaGeNeCySt]

=(

[PS360PCROCKS]

bad boy thanks for explaining that, damn that's so uncool if true...

[PS360PCROCKS]

hey so odd question but anyone think that maybe Microsoft got involved and said something and this has something to do with UT being delayed? and the stories that Epic and Microsoft were fighting awhile back? Because this is a very big and very anticipated title for Microsoft that keeps getting delayed...I'm sure that doesn't make them happy

[THE VIOLATOR]

Not sure what to think, but realize this is big business, not fanboys, & two well respected companies in the gaming Industry. I don't think M$ would get involved, you don't touch legal matters like this with a 10 foot pole unless you are directly involved, which they are not. Epic has a shady side for sure, they have always been all about glitching, mods, ect. But this is soooo believeable in this day & age of corporate scandals - Remember, we are talking about millions of dollars & a clear advantage for your company if your Epic. If true, Epic is scum, I can't imagine SKnights taking this to court if they did not have major evidence to support their case.

[Lex Luthor]

Epic seems to be taking the piss. Did you know that Bioware had to create a LOT of it's own stuff when working on Mass Effect beacuse of the completely inadquate engine that was given to them by Epic. If BW relied soley on UE3, the game would look NOWHERE near as good as it would now.