The development and upcoming release of Sin City and Heroes Over Europe has fell into uncertainty with Red Mile set to burn through their cash by March.
Atari had a co-publishing deal with Red Mile for Heroes Over Europe but abruptly ended the accord, and subsequently the cash injections. Legal options are being considered now.
Transmission Games had stopped development work on the WII aerial combat videogame Heroes Over Europe with Red Mile owing the studio around $281,000 in pay before opting to leave the project.
The troubled publisher is now considering if it should launch legal action against Atari for ”compensatory damages,” but what little money is left in the pot will run out very soon.
$341,000 is all that’s left with Red Mile and won’t help them stay open past next month with the publisher predicting it needs $10m to stay alive for 2-3 years. With constant posts of financial losses the banks are likely to only laugh and not dare to bail them out.
It’s a great tragedy as Heroes Over Europe was shaping up well; see for yourself below:
Source: Joystiq
