Report: Hydrophobia dev Dark Energy in financial trouble

Manchester, UK-based game developer Dark Energy Digital is entering administration and has already issued redundancy notices to staff, according to media reports. The studio is behind 2010's Xbox Live Arcade game Hydrophobia. The game was notable for its dynamic water effects, but gathered poor reviews from critics. In response, the development team released a version called Hydrophobia Pure which addressed many of those issues, and later released a version called Hydrophobia Prophecy which featured new levels. A report appeared on GI.biz [registration required] from "a source at the company" stating that the studio had informed its employees of the decision, and that the process will begin within the next couple of weeks. The company's co-MDs have also registered a new company under the name of Dark Energy Publishing, fueling speculation that they are looking to take assets from Dark Energy Digital after it folds. This is a major concern for current staff at the company, as according to a Dark Energy "representative" and as reported by Eurogamer, employees have not been paid in three months. However, Gary Switzer, art manager at Dark Energy, has since stated that there is no truth to the rumors, and that it has all come from "one disgruntled ex-employee." Gamasutra has attempted to contact Switzer but has not received a response. Gamasutra has also attempted to contact Dark Energy multiple times, but received no word on whether the reports have any truth to them. However, multiple employees at the company have told us that they are not aware of the reported situation, and believe that they still have jobs with the company.