Yager Files For Insolvency After Losing Dead Island 2, Larger Studio Unaffected
Yager has filed for insolvency (a form of bankruptcy) for the sub-division of the company that was tasked with developing Dead Island 2. While this might mean the end of that team, the larger company will continue its operations.
Earlier this year, Deep Silver announced that its relationship with Yager had ended. According to Yager, it had a different artistic vision from the game than the publisher. Deep Silver hasn’t yet named a new developer on the project.
In a statement received by Games Industry, Yager CEO Timo Ullmann directly cites the loss of Dead Island 2 as the reason for the financial trouble. "The insolvency filing is a direct result from the early termination of the project and helps protecting our staff,” Ullmann says. “In the course of the proceedings, we gain time to sort out the best options for reorganizing this entity."
Yager is also currently working with publisher Grey Box on a multiplayer title, Dreadnought. That title features large spacecraft in five-on-five battles. It’s anticipated as a free-to-play game and should be available in a public test phase this year.
We’ve reached out to Yager for more information. We’ll update should we receive a response.
Update: Yager has provided us with a statement that mirrors what Games Industry reported earlier today. Additionally, Ullmann tells us that the wages of those working in the affected division are secure for a number of months.
"We are currently at a good stage of setting up a plan for the reorganization," Ullmann told us via email. "Unfortunately, I can`t get into details at the time being. However, we have a great skilled team that deserves the best solution. The insolvency proceedings provide us with the necessary time to find exactly that. Our group structure ensures that all other parts of YAGER work completely independently and remain totally unaffected, all other projects will be continued as planned.
[Source: Games Industry]
Given that this sub-division of the company was created for the express purpose of working on Dead Island 2, it isn’t terribly surprising that the parting with Deep Silver caused financial hardship. What is a bit concerning is that the larger corporation couldn’t reorganize without insolvency. I’ve enjoyed Yager’s work on Spec Ops: The Line and I have previewed Dreadnought a couple of times. I hope the company can recover from this.