DICE Close NY`s Trauma Studios News

Swedish developer Digital Illusions has today announced the closure of itâ??s Trauma Studios, which are based in New York. Although recently acquired by DICE back in September 2004, Thomas Skoglund, Chairman of the Board of Digital Illusions has commented that, â??The conditions have changed and the future plans of the company differ considerably from when Trauma Studios was acquiredâ?¦â?

Explaining the action further, Skogland stated that, â??The acquisition of Trauma Studios was nevertheless particularly motivated. The deal contained value in form of rights to trademarks as well as a new game concept.â?

Digital Illusions are currently planning to expand its Swedish operations with, â??â?¦[continuing] use of outsourcing of elementary graphic services to cheaper countries as for example Ukraineâ?, and the statement has also confirmed that the companyâ??s Canadian offices will remain as a satellite studio.

Ending the statement, DICE has also made it clear that the supplementary payment of $200,000 agreed upon during their acquisition of Trauma Studios will not be paid, and that, â??Other costs of liquidation are diminutive.â?

Although the statements made by Skoglund on behalf of Digital Illusions lacked some clarification, the timing of the action seems more than just a coincidence. Trauma had spent the previous few months working on several aspects of Battlefield 2, which is set for release on June 21st 2005 in the US and June 24th 2005 in the UK â?“ and it seems that since the completion of their role in the development of game that the company was surplus to requirements.

Weâ??ll have more news shortly...