Word started passing yesterday that Flagship Studios went caput, and now multiple sites are reporting word that the Hellgate developer is indeed no more.

We got an anonymous tipster who said Flagship shut down abruptly yesterday, and that developers for both Hellgate (San Francisco) and Mythos (Seattle) have all been pink-slipped. “But there’s also hope that they will all have their jobs back at the end of next week at a brand new company”, our tipster says.

But wait, there’s more. Flagship’s Korean partners/owners, Hanbitsoft, were said to be taking over. That sparked a foofaraw regarding who owns the Hellgate intellectual property.