Fallout MMO in danger of getting axed

The upcoming Fallout MMO, the follow up to Bethesda's 2008 action RPG, Fallout 3, for Xbox 360, PS3, and PC, is in serious trouble.

The upcoming Fallout MMO, the follow up to Bethesda's 2008 action RPG, Fallout 3, for Xbox 360, PS3, and PC, is in serious trouble.

In Interplay's annual financial report, it shows that Bethesda plans to terminate Interplay's licensing rights to develop the new Fallout game due to the company failing to raise US$30 million in funding, which was part of a legal agreement between the two parties.

Here is an excerpt from the report that reveals Bethesda's plans.

Interplay recently received notice that Bethesda Softworks, LLC ("Bethesda") intends to terminate the trademark license agreement between Bethesda and Interplay which was entered into April 4, 2007 for the development of FALLOUT MMOG. Despite the fact that no formal action is currently pending, Bethesda claims that Interplay is in breach of the trademark license agreement for failure to commence fill scale development of same by April 4, 2009 and to secure certain funding for the MMOG. Interplay adamantly disputes these claims. Although the potential damages are currently unknown, if Bethesda ultimately prevails and cancels the trademark license agreement, Interplay would lose its license back of the "Fallout" MMOG and any damages resulting therefrom are unknown at this time.

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