Cavedog Caves In

In GT Interactive's financial report for the quarter ending December 31, GT Interactive announced that it will be closing the doors of its internal development group, Cavedog Studios. The announcement didn't come as a surprise to most, as Cavedog has been showing signs of trouble for a number of months and was recently forced to cancel Elysium and Amen: The Awakening due to budget and scheduling problems.

"We are continuing to look for new ways to leverage the combined strengths of GT Interactive and Infogrames to become a global powerhouse in interactive software,'' said GT CEO and chairman Bruno Bonnell. "We are more committed than ever to building shareholder value for the long term.''

GT lost over US$118 million in revenues for the third fiscal quarter of 1999. It's not known what will happen to Cavedog's online gaming service, Boneyards; Ron Gilbert's upcoming Good and Evil; or The Iron Plague, the Total Annihilation: Kingdoms expansion pack. At the time of press, no one from Humungous, Cavedog, or GT Interactive was available for comment.