Silicon Knights suffers setback in Epic lawsuit

Too Human developer Silicon Knights has suffered a serious blow in its lawsuit against Epic Games for failing to provide a working game engine for their Xbox 360 exclusive.

Shacknews states that the court has thrown out certified accountant Terry Lloyd’s damage estimates, that served as Silicon Knight’s key testimony. The court branded Lloyd “not qualified” and that his testimonial was “unreliable and speculative”.

Lloyd claimed that Epic’s failure to provide a working version Unreal Engine 3 and instead develop Gears of War cost the company some serious damages  listed below.

– Lost royalties due to decrease sales ($6.2 mil)
– Lost publisher bonus ($750k)
– Lost ancillary royalties ($810k)
– Lost profits from sequels ($16+ mil for Too Human II, $14+ mil for Too Human III) and another Sega title, The Ritualyst ($8+ mil)
– Cost to develop a new engine ($2.3 mil)
– Economic harm to Silicon Knights’ reputation ($8.9 mil)

Epic’s response to the claims read: “Having exploited Epic’s intellectual property to its advantage, Silicon Knights now seeks to renege on its payment obligations under the License Agreement. It is Silicon Knights, not Epic, that has engaged in deceit, infringement of Epic’s intellectual property rights, breach of contract, and unfair business practices.”

Silicon Knight’s latest, X-men: Destiny, failed to please both critics and fans, and publisher Activision has since cancelled another project developed by the studio. It’s not looking too bright for the company right now.