Hellgate Dev Lands Financial Boost

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http://www.next-gen.biz/index.php?option=com_content&task=view&id=9729&Itemid=59

By Kris Graft

 Hellgate developer Flagship Studios said Wednesday that it has struck a "multi-million dollar" facility that allows the studio to not rely so heavily on publisher investment. San Francisco-based Flagship, which also developed the game Mythos for PC, inked the agreement with Texas-based regional bank Comercia for an undisclosed amount that is reportedly in the millions.

Flagship said the money will help the studio continue the development of triple-A and online game franchises as the PC market transitions from boxed retail to digital distribution.

Flagship added that the facility is "backed by the sale and distribution rights to Flagship’s game franchise Hellgate: London."

The online PC game Hellgate: London launched on October 31 last year.

"By following a model similar to independent film financing, we are able to directly finance ongoing content for our online games without relying upon a publisher’s investment," said Steve Goldstein, director of business development and general counsel at Flagship Studios. "As the PC game business makes the transition from the boxed retail model to the online model, alternative financing will become a cornerstone of expanding the industry."