Editing Silicon Knights

{{Short description|Defunct Canadian video game developer}}
{{Use mdy dates|date=August 2021}}{{Use Canadian English|date=September 2024}}

{{Infobox company
| name = Silicon Knights
| logo = Silicon Knights logo.png
| logo_size = 200px
| type = 
| industry = [[Video game industry|Video games]]
| foundation = 1992
| defunct = 2014
| founder = 
| location_city = [[St. Catharines]], [[Ontario]]
| location_country = Canada
| area_served = 
| key_people = [[Denis Dyack]]<br />Michael Mays
| products =
| revenue = 
| operating_income = 
| net_income = 
| owner = 
| num_employees = 97 (July 2011)<ref name=grant /><br />5 (October 2012)<ref>{{cite web|url=http://www.gamesindustry.biz/articles/2012-10-26-silicon-knights-staff-now-fewer-than-5-report |title=Silicon Knights staff now fewer than 5 – Report &#124; GamesIndustry International |publisher=Gamesindustry.biz |date=October 26, 2012 |access-date=November 19, 2012}}</ref><ref>{{cite web|url=http://kotaku.com/5955223/what-went-wrong-with-silicon-knights-x+men-destiny |title=What Went Wrong With Silicon Knights' X-Men: Destiny? |publisher=Kotaku.com |date=October 26, 2012 |access-date=November 19, 2012}}</ref>
| parent = 
| website = [https://web.archive.org/web/20140211220537/http://www.siliconknights.com/ siliconknights.com (archived)]
}}

'''Silicon Knights''' was a Canadian [[video game developer]]. Founded in 1992 by [[Denis Dyack]], the company was headquartered in [[St. Catharines]], [[Ontario]]. They started developing for computers such as the [[Atari ST]] and [[IBM PC compatibles]]. After 1996, they moved to console titles.

Dyack left Silicon Knights to form a new game studio, Precursor Games, after the loss of a court case against [[Epic Games]] over the game engine [[Unreal Engine 3]].<ref name="polygon">{{cite web|url=http://www.polygon.com/2013/5/9/4316936/silicon-knights-epic-games-precursor-games|title=Silicon Knights unloads property, closes office, continues battle with Epic Games|last=Crecente|first=Brian|date=May 9, 2013|work=[[Polygon (website)|Polygon]]|publisher=[[Vox Media]]|access-date=May 10, 2013}}</ref> Epic Games won the case and a counter-suit for $4.45 million on grounds of copyright infringement, misappropriation of trade secrets, and breach of contract.<ref name="Totilo">{{cite web |url=http://kotaku.com/5914326/epic-says-epic-wins-lawsuit-battle-with-silicon-knights |title=Epic Says Epic Has Won Lawsuit Battle With Silicon Knights [UPDATE: Epic Awarded $4.45 Million] |last=Totilo |first=Stephen |date=May 30, 2012 |website=[[Kotaku]] |publisher=[[Gawker Media]] |access-date=August 24, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160824092208/http://kotaku.com/5914326/epic-says-epic-wins-lawsuit-battle-with-silicon-knights |archive-date=August 24, 2016}}</ref> Following the case, Silicon Knights filed for bankruptcy on May 16, 2014.<ref name="CollinsBarrow">{{Cite web|url=https://www.bakertilly.ca/en/btc|title=Baker Tilly Canada &#124; Chartered Professional Accountants|website=www.bakertilly.ca}}</ref>

==Games==
===Released===
Silicon Knights' first games were real-time strategy/action hybrids for computers. Silicon Knights' last PC game, ''[[Blood Omen: Legacy of Kain]]'' was published in 1996. Since that time, Silicon Knights moved from creating [[PC game]]s to console titles. In 2000, Silicon Knights was signed by [[Nintendo]] to create games exclusively for its consoles, during which time it produced ''[[Eternal Darkness|Eternal Darkness: Sanity's Requiem]]''. Together with Nintendo, Silicon Knights worked with [[Konami]] to create ''[[Metal Gear Solid: The Twin Snakes]]''.<ref>{{Cite web|url=https://www.nintendolife.com/news/2016/12/feature_the_making_of_metal_gear_solid_the_twin_snakes|title=Feature: The Making Of Metal Gear Solid: The Twin Snakes|date=December 27, 2016|website=Nintendo Life}}</ref> In 2004, the company ended exclusivity with Nintendo. In 2005, it partnered with [[video game publisher|publisher]] [[Microsoft Game Studios]] for ''[[Too Human]]'', though Nintendo still owned stock in the company. In 2008, the company released ''Too Human'', which was published by Microsoft for the Xbox 360. The final game developed by the company, ''[[X-Men: Destiny]]'', was released in September 2011 for multiple console platforms.

{| class="wikitable sortable"
|-
! Year !! Game !! Platform(s)
|-
| 1992 || ''[[Cyber Empires]]'' || [[Amiga]], [[Atari ST]], [[DOS]]
|-
| 1993 || ''[[Fantasy Empires]]'' || rowspan="2"| DOS
|-
| 1994 || ''[[Dark Legions]]''
|-
| 1996 || ''[[The Horde (video game)|The Horde]]'' || [[Sega Saturn]]
|-
| 1996 || ''[[Blood Omen: Legacy of Kain]]'' || [[Windows]], [[PlayStation (console)|PlayStation]]
|-
| 2002 || ''[[Eternal Darkness|Eternal Darkness: Sanity's Requiem]]'' || rowspan="2"| [[GameCube]]
|-
| 2004 || ''[[Metal Gear Solid: The Twin Snakes]]''
|-
| 2008 || ''[[Too Human]]'' || [[Xbox 360]]
|-
| 2011 || ''[[X-Men: Destiny]]'' || [[PlayStation 3]], Xbox 360, [[Wii]]
|}

===Canceled===
Canceled games included ''Silent Hill: The Box'' (later known as just ''The Box'' and ''The Ritualyst''), ''Too Human 2'' (''Too Human: Rise of the Giants''), ''Too Human 3'', ''Eternal Darkness 2'', and the little-known projects ''Siren in the Maelstrom'', ''The Sandman'' and ''King's Quest''.<ref>{{cite web|last=Shepherd |first=Jack |url=http://www.computerandvideogames.com/383233/cancelled-silicon-knights-games-detailed/ |title=News: Cancelled Silicon Knights games detailed |publisher=ComputerAndVideoGames.com |date= |access-date=March 15, 2021}}</ref><ref>{{cite web|url=http://www.eurogamer.net/articles/2012-12-12-silicon-knights-cancelled-games-laid-bare |title=Silicon Knights' cancelled games laid bare • News • |publisher=Eurogamer.net |date=December 12, 2012 |access-date=March 15, 2021}}</ref><ref>{{cite web |url=http://www.escapistmagazine.com/news/view/114960-Epic-Wins-Advantage-in-Too-Human-Lawsuit |title=Epic Wins Advantage in Too Human Lawsuit |publisher=Escapist Magazine |date=December 27, 2011 |access-date=December 31, 2011 |archive-date=March 14, 2012 |archive-url=https://web.archive.org/web/20120314195311/http://www.escapistmagazine.com/news/view/114960-Epic-Wins-Advantage-in-Too-Human-Lawsuit |url-status=dead }}</ref>

==Founding of Eight==
Silicon Knights was a strong proponent of collaboration with academia and was a key player in the formation of Eight.<ref>{{cite web|url=http://dailynews.mcmaster.ca/story.cfm?id=6787|title=Hamilton poised to become leader in interactive digital media|publisher=McMaster Daily News|access-date=December 19, 2011|archive-date=September 26, 2011|archive-url=https://web.archive.org/web/20110926025948/http://dailynews.mcmaster.ca/story.cfm?id=6787|url-status=dead}}</ref> Eight: The Hamilton Institute for Interactive Digital Media is a collaboration between Silicon Knights, [[McMaster University]], the [[Art Gallery of Hamilton]] (AGH) and [[Mohawk College]] to create a novel academic and research model around interactive digital media and will help pioneer and shape cutting-edge advances in the interactive entertainment arena.{{citation needed|date=July 2014}}

==Lawsuit with Epic Games==
On July 19, 2007, Silicon Knights sued [[Epic Games]] for failure to "provide a working game engine", causing the Ontario-based game developer to "experience considerable losses."<ref>{{cite web |url=http://kotaku.com/280491/silicon-knights-epic-sabotaged-us |title=Silicon Knights: Epic Sabotaged Us |last=Crecente |first=Brian |date=July 19, 2007 |website=[[Kotaku]] |archive-url=https://web.archive.org/web/20090916170528/http://kotaku.com/280491/silicon-knights-epic-sabotaged-us |archive-date=September 16, 2009 |url-status=dead |access-date=November 15, 2017}}</ref> The suit alleged that Epic Games was "sabotaging" [[Unreal Engine 3]] licensees. Epic's licensing document stated that a working version of the engine would be available within six months of the Xbox 360 developer kits being released. Silicon Knights claimed that Epic not only missed this deadline, but that when a working version of the engine was eventually released, the documentation was insufficient. The game studio also claimed Epic had withheld vital improvements to the game engine, claiming they were "game specific", while also using licensing fees to fund development of its own titles rather than the engine itself.<ref>{{cite web |url=https://www.gamedeveloper.com/game-platforms/breaking-silicon-knights-files-lawsuit-against-epic |title=Breaking: Silicon Knights Files Lawsuit Against Epic |last=Carless |first=Simon |date=July 19, 2007 |website=[[Gamasutra]] |publisher=[[UBM TechWeb]] |access-date=August 24, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160924053524/http://www.gamasutra.com/view/news/105711/Breaking_Silicon_Knights_Files_Lawsuit_Against_Epic.php |archive-date=September 24, 2016}}</ref>

In August 2007, Epic Games [[Counterclaim|counter-sued]] Silicon Knights, alleging the studio was aware when it signed on that certain features of Unreal Engine 3 were still in development and that components would continue to be developed and added as Epic completed work on ''[[Gears of War (video game)|Gears of War]]''. Therefore, in a statement, Epic said that "SK knew when it committed to the licensing agreement that Unreal Engine 3 may not meet its requirements and may not be modified to meet them."<ref name="gamedaily">{{cite web |url=http://www.gamedaily.com/articles/features/mark-rein-epic-games-did-nothing-wrong-silicon-knights-is-stealing/70780/ |title=Mark Rein: Epic Games Did Nothing Wrong; Silicon Knights is Stealing |last=Brightman |first=James |date=August 9, 2007 |website=[[GameDaily]] |archive-url=https://web.archive.org/web/20071122011316/http://www.gamedaily.com/articles/features/mark-rein-epic-games-did-nothing-wrong-silicon-knights-is-stealing/70780/ |archive-date=November 22, 2007 |url-status=dead |access-date=November 9, 2017}}</ref> Additionally, the counter-suit claimed that Silicon Knights had "made unauthorized use of Epic's Licensed Technology" and had "infringed and otherwise violated Epic's intellectual property rights, including Epic's copyrighted works, trade secrets, know how and confidential information" by incorporating Unreal Engine 3 code into its own engine.<ref name="gamedaily"/> Furthermore, Epic claimed the Canadian developer broke the contract by employing this derivative work in an internal title and a second game with [[Sega]],<ref name="gamesp">{{cite web |url=https://www.gamespot.com/articles/epic-games-countersues-silicon-knights/1100-6176435/ |title=Epic Games countersues Silicon Knights |last=Sinclair |first=Brendan |date=August 9, 2007 |website=[[GameSpot]] |archive-url=https://web.archive.org/web/20170928180703/https://www.gamespot.com/articles/epic-games-countersues-silicon-knights/1100-6176435/ |archive-date=September 28, 2017 |url-status=live |access-date=September 28, 2017}}</ref> a partnership for which it never received a license fee.<ref>{{cite web |url=http://www.next-gen.biz/index.php?option=com_content&task=view&id=7750&Itemid=2 |title=Epic's Motion to Dismiss UE3 Case Denied |last=Graft |first=Kris |date=October 31, 2007 |website=[[Next Generation (magazine)|Next Generation]] |archive-url=https://web.archive.org/web/20071103033242/http://www.next-gen.biz/index.php?option=com_content&task=view&id=7750&Itemid=2 |archive-date=November 3, 2007 |url-status=dead |access-date=December 20, 2017}}</ref>

On May 30, 2012, Epic Games prevailed against Silicon Knights' lawsuit, and won its counter-suit for $4.45 million on grounds of copyright infringement, misappropriation of trade secrets, and breach of contract,<ref name="Totilo"/> an injury award that was later doubled due to prejudgment interest, attorneys' fees and costs.<ref name="vg247"/> Consistent with Epic's counterclaims, the presiding judge, [[James C. Dever III]], stated that Silicon Knights had "deliberately and repeatedly copied thousands of lines of Epic Games' copyrighted code, and then attempted to conceal its wrongdoing by removing Epic Games' copyright notices and by disguising Epic Games' copyrighted code as Silicon Knights' own."<ref name="vg247">{{cite web |url=https://www.vg247.com/2012/11/09/epic-judgment-doubled-silicon-knights-ordered-to-pay-over-9-million/ |title=Epic judgment doubled, Silicon Knights ordered to pay over $9 million |last=Nunneley |first=Stephany |date=November 9, 2012 |website=[[VG247]] |publisher=[[Videogaming247]] |access-date=August 24, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160808040934/http://www.vg247.com/2012/11/09/epic-judgment-doubled-silicon-knights-ordered-to-pay-over-9-million/ |archive-date=August 8, 2016}}</ref> Evidence against Silicon Knights was "overwhelming", said Dever, as it not only copied functional code but also "non-functional, internal comments Epic Games' programmers had left for themselves."<ref name="vg247"/>

As a result, on November 7, 2012, Silicon Knights was directed by the court to destroy all game code derived from Unreal Engine 3 and all information from licensee-restricted areas of Epic's Unreal Engine documentation website, and to permit Epic Games access to the company's servers and other devices to ensure these items had been removed. In addition, the studio was instructed to recall and destroy all unsold retail copies of games built with Unreal Engine 3 code, including ''[[Too Human]]'', ''[[X-Men Destiny]]'', ''The Sandman'', ''The Box''/''Ritualyst'', and ''Siren in the Maelstrom'' (the latter three titles were projects never released, or even officially announced).<ref>{{cite web |url=https://docs.justia.com/cases/federal/district-courts/north-carolina/ncedce/5:2007cv00275/89570/862 |title=Silicon Knights, Inc. v. Epic Games, Inc. |last=Sawyer |first=D. |date=November 7, 2012 |website=[[Justia]] |access-date=August 24, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160904072807/https://docs.justia.com/cases/federal/district-courts/north-carolina/ncedce/5%3A2007cv00275/89570/862 |archive-date=September 4, 2016}}</ref>

Talking to [[IGN]] in 2019, Dyack expressed regrets over the lawsuit not just because of the loss but also the fact he underestimated the amount of time it took to settle the litigation. Had he known then, Dyack said he would have reconsidered pursuing the lawsuit.<ref>{{cite web |last1=McCaffrey |first1=Ryan |title=Denis Dyack: Working on Eternal Darkness, Metal Gear, & More! - IGN Unfiltered #42 |url=https://www.youtube.com/watch?v=1rEFs8sR4I0&t=42m59s  |archive-url=https://ghostarchive.org/varchive/youtube/20211222/1rEFs8sR4I0 |archive-date=2021-12-22 |url-status=live|website=YouTube |date=May 7, 2019 |accessdate=10 October 2019}}{{cbignore}}</ref>

==Government funding==
===Provincial===
In February 2008, Silicon Knights was granted $500 thousand by the Ontario Media Development Corporation (OMDC) through its Video Game Prototype Initiative. Using this funding, they were to create a prototype for a "third-person action/psychological thriller".<ref>{{Cite web |url=http://www.omdc.on.ca/AssetFactory.aspx?did=6079 |title=OMDC News Release |access-date=April 15, 2010 |archive-date=October 18, 2013 |archive-url=https://web.archive.org/web/20131018234922/http://www.omdc.on.ca/AssetFactory.aspx?did=6079 |url-status=dead }}</ref>

===Federal===
In April 2010, it was announced that the company would receive nearly $4 million through the Canadian government's Community Adjustment Fund. The purpose of the loan was to allow the hiring of 65 new staff members, who would be working on a new game targeting multiple platforms. The game was estimated to take two to five years to complete.<ref>{{Cite web|url=http://www.wellandtribune.ca/ArticleDisplay.aspx?e=2529331|title=Welland Tribune: ''Silicon Knights get $4-million boost''|access-date=April 15, 2010|archive-date=April 18, 2010|archive-url=https://web.archive.org/web/20100418033132/http://www.wellandtribune.ca/ArticleDisplay.aspx?e=2529331|url-status=dead}}</ref>

===Provincial===
In July 2011, Silicon Knights was awarded $2.5 million to be distributed over five years in provincial funding to improve its technology, create new products and become a self-publishing company. The investment would supposedly have allowed the company to improve its technology, hire 80 new people while keeping 97 current jobs and allow the company to become "self sustaining." As of November 2011, Silicon Knights had not received any of this funding.<ref name=grant>{{cite web |url=http://www.stcatharinesstandard.ca/ArticleDisplay.aspx?e=3358681 |title=No grant cash yet, embattled game designer says |author=JEFF BOLICHOWSKI |publisher=St. Catharines Standard |access-date=December 21, 2011 |archive-date=April 5, 2020 |archive-url=https://web.archive.org/web/20200405184935/http://www.stcatharinesstandard.ca/ArticleDisplay.aspx?e=3358681 |url-status=dead }}</ref>

==Filing for bankruptcy==
On May 16, 2014, following the loss of the court case, Silicon Knights filed for bankruptcy and a Certificate of Appointment was issued by the Office of the Superintendent of Bankruptcy, with Collins Barrow Toronto Limited being appointed as Trustee in Bankruptcy.<ref>[http://www.collinsbarrow.com/en/toronto-ontario/silicon-knights-inc Collins Barrow] {{webarchive|url=https://web.archive.org/web/20160410143740/http://www.collinsbarrow.com/en/toronto-ontario/silicon-knights-inc |date=April 10, 2016 }} Trustee In Bankruptcy Of Silicon Knights Inc.</ref>

==References==
{{Reflist}}

==External links==
*[https://web.archive.org/web/20140211220537/http://www.siliconknights.com/ Official website] via [[Internet Archive]]
*[https://www.mobygames.com/company/silicon-knights-inc Silicon Knights profile] on [[MobyGames]]

{{Silicon Knights}}
{{Legacy of Kain series}}
{{Nintendo developers}}
{{Authority control}}

[[Category:Silicon Knights| ]]
[[Category:Companies based in St. Catharines]]
[[Category:Canadian companies established in 1992]]
[[Category:Canadian companies disestablished in 2014]]
[[Category:Video game companies established in 1992]]
[[Category:Video game companies disestablished in 2014]]
[[Category:Defunct video game companies of Canada]]
[[Category:Video game controversies]]
[[Category:Video game development companies]]
[[Category:Defunct companies of Ontario]]
[[Category:1992 establishments in Ontario]]
[[Category:2014 disestablishments in Ontario]]
[[Category:Companies that have filed for bankruptcy in Canada]]