3D Realms Statement on Duke Forever

See the below statement just sent to me by George Broussard:

3D Realms Release – Pertaining to Recent Events Surrounding Duke Nukem Forever

Dallas, TX (May 18, 2009) – In light of recent press articles and statements by Take-Two (to the media and in a lawsuit), we want to set the record straight on some issues.

Despite rumors and statements to the contrary, 3D Realms (3DR) has not closed and is not closing. 3DR retains ownership of the Duke Nukem franchise.  Due to lack of funding, however, we are saddened to confirm that we let the Duke Nukem Forever (DNF) development team go on May 6th, while we regroup as a company. While 3DR is a much smaller studio now, we will continue to operate as a company and continue to license and co-create games based upon the Duke Nukem franchise.

As some of you may know, Take-Two filed a lawsuit last week containing various accusations and claims against 3DR and the uncompleted DNF game. Take-Two never paid 3DR advances or any signing bonus or any other funds related to DNF, up until July 2008, at which time they paid $2.5m in connection with another agreement for an unannounced game.  This is the sum total Take-Two has paid 3DR in connection with DNF.  Take-Two claims that they paid $12m to GT Interactive/Infogrames to acquire the publishing rights for the DNF game. To be clear, 3DR was not a party to that transaction and did not receive any money from it.  When the DNF game was originally signed with GT Interactive in 1998, GT paid 3DR a $400,000 signing bonus. Up until July 2008, this was the only publisher money we received for the DNF game.  Meanwhile, 3DR put over $20m into the production of DNF.

Take-Two retains publishing rights for the DNF game, although 3DR retains certain rights to sell the game directly to the public.  Late last year, 3DR began negotiations with Take-Two to provide funding to complete the DNF game. In the meantime, 3DR was hitting mutually-agreed milestones, despite not having a new agreement finalized.  Take-Two was well aware that 3DR needed the funding to continue the DNF game development.  Suddenly, after months of negotiations, Take-Two materially changed the parameters of the proposed funding agreement.  3DR informed Take-Two that it could not financially afford the changes Take-Two was suggesting and would be forced to release the team if an agreement was not reached. Take-Two made a last minute proposal to acquire the Duke Nukem franchise and the 3DR development team.  Take-Two’s proposal was unacceptable to 3DR for many reasons, including no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game. From 3DR’s perspective, we viewed Take-Two as trying to acquire the Duke Nukem franchise in a “fire sale.” Those negotiations fell through on May 4th, a deal never materialized, and the DNF team was sadly released a few days later.

Less than a week after the DNF team was released, Take-Two filed its lawsuit in New York, seeking immediate temporary injunctive relief.  The court denied Take-Two’s request for a temporary restraining order.  While we cannot comment on the details of the ongoing lawsuit, we believe Take-Two’s lawsuit is without merit and merely a bully tactic to obtain ownership of the Duke Nukem franchise. We will vigorously defend ourselves against this publisher.


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8 Responses to “3D Realms Statement on Duke Forever”

  1. J. Edgar Hoover Says:

    Yay! 3dRealms is an important company in the pinnacle of gaming. I certainly hope their doors stay open for many years to come. As for Duke Nukem Forever, we’ve already waited over a decade for the game to be released, so whats the rush?

  2. Brianemone Says:

    Wow, that sounds like a fairly harsh way to be dealt with. To be fair the game should have never taken as long as it was taking but given the amount of money 3DR were putting into on their own I don’t think it is right to be treated like that.

  3. Alan Says:

    First!

    Well I think 3DR should have sold the rights to DNF and the studio to Take Two. I mean they have had them for what is it, 10 years now? I really cannot figure what was taking them so long. I’m sure T2 (or any big publisher) could develop and sell DNF much faster than 3DR ever will (or would have). That said, it was also a bully move to pressure them into despair and trying to profit from that. As a fan I’m sad to see that this game is in the worst of all development hells, ever.

  4. Jose Villeta Says:

    Make me proud Duke Nukem Forever!

  5. Jim S Says:

    1996 called, they want their 3D back!

  6. Nathan P Says:

    How about the fact that 3DR hasn’t finished anything in the last 13 years? I think that 3DR should have to pay back every penny they basically stole for never finishing anything. This reminds me of those employees that get paid to read email all day and not respond to anything. 3DR sucks! They just live high on the hog for doing nothing. They shouldn’t even be allowed back in to the industry!

  7. ismet Says:

    hahahahahah

  8. العاب افاتار Says:

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