Report: Walking Dead FPS, Star Wars Kinect developer shuts down after nearly 20 years

Texas-based Terminal Reality closes its doors, according to former employee.

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Irving, Texas independent developer Terminal Reality--creator of The Walking Dead: Survival Instinct, Ghostbusters: The Video Game, and BloodRayne--has closed its doors, according to a former employee (via Gamasutra). The studio originally opened in 1994.

Former 10-year veteran of the studio Jesse Sosa said on Facebook recently that Terminal Reality "seems to have finally shut down." Terminal Reality also contributed to 2012's Kinect Star Wars. In addition, the studio supported its business by licensing its proprietary Infernal Engine.

Official details on the fate of Terminal Reality are hard to come by. It's not clear how many staffers may have been affected or when the studio shut down, if it indeed did. In a 2009 interview, Terminal Reality described itself as a "very large" independent studio with multiple development teams.

The company's website currently redirects users to its Facebook page (which has not been updated since October), while the Infernal Engine website says it is undergoing maintenance. Terminal Reality's Twitter account has been inactive since March.

GameSpot was unable to contact Terminal Reality to confirm the company's closure or to clarify the extent of the situation.

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Avatar image for spike6958

When you mess up a Zombie game you know you've got problems, especially when it's based on one of the most popular Zombie franchises, and is using the most popular character from the TV show as it's lead. Seriously the fact Walking Dead: Survival Instincts didn't sell well by name along just proves how bad Terminal Reality where.

That said I did enjoy Ghostbusters, but that was mainly because it was written by Dan Aykroyd and Harold Ramis, and they all came back to voice it too.

Avatar image for Aaronp2k

thank god they are being shut down before they kill off another great movie franchise. I suspect lord of the rings or the hobbit would have been their next target.

Avatar image for zenstrata

ghostbusters and bloodrayne were good games. But the walking dead survival instinct was pretty bad. Also the Kinect killed the star wars game, not the developers. The Kinect is a terrible piece of crap and has destroyed pretty much every game it has touched with the exception of dancing titles. And who honestly plays nothing but dancing games?

The new Kinect is not much better. The inclusion of a microphone to interpret voice commands is incidental and could have been implemented on any system which includes a mic! Its the motion control that is wrecking games. I doubt that will be any different on the xbox one. The rest of the technology isn't ready for motion control. We need a true VR setup to manage that. And most people don't have an empty aircraft hanger to dance around in. Even most living room spaces are not really adequate to properly allow motion control.

Because of this and other issues, I predict the games on the xbox one which use Kinect will be just as terrible as they were on the xbox 360.

Avatar image for Senor_Kami

I don't know. If someone burns up every meal they make, it's not mean to say that they just aren't cut out to be a chef is it? Bloodrayne, Star Wars Kinect, Walking Dead FPS... maybe these guys just shouldn't be in the games business. Everything they made sucked or was mediocre but a commercial failure.

Avatar image for vader501st

Shame to see people lose their jobs, but I can see why in this case. Hope they find a way to back from this anyhow.

Avatar image for nparks

I really liked the Ghostbusters game. Can't go wrong with (the real) Ghostbusters.

Avatar image for ThePowerOfHAT

Can't say I'm surprised, but there are definitely some games in this developers' catalogue that I adored. And it's disappointing to know that the guys behind the surprisingly great Ghostbusters video game are shutting down, as I would've loved to see them tackle that franchise again. Curious to see if the Infernal engine might be given to another company to be updated and licensed out, or if that'll be gone forever as well.

Avatar image for deathstream

I loved Nocturne. Haven't paid much attention to them since, although my son is currently playing Ghostbusters.

Avatar image for uncle5555

Apparently none of you (or very, very few) were around in the PC Gaming scene when they broke out with their first game Terminal Velocity. Microsoft paid them to develop a sequel for Windows called Fury 3 that did well for them.

And since most of you are too damned lazy to check their wikipedia page, here are some of their highlights.

Terminal Velocity DOS, Windows

Fury3 Windows

Hellbender Windows

Monster Truck Madness Windows

Monster Truck Madness 2 Windows

Fly! Macintosh, Windows

Nocturne Windows

BloodRayne GameCube, Macintosh, PlayStation 2, Windows, Xbox

Ghostbusters: The Video Game

Avatar image for Pyrosa

<< LINK REMOVED >>Terminal Velocity was the only one that was actually FUN, though. BloodRayne and MTM were okay for an afternoon, but not much else. What's amazing is how long they were actually able to stay IN business.

Avatar image for Warlord_Irochi

This is what happens when you deal with Activision and alike.

Avatar image for pszone

Ghost Busters the video game was best game ever made . and worst game did was Kinect Star Wars what killed company .

Avatar image for hadlee73

I liked Ghost Busters, but after that it was all downhill.

Avatar image for R4gn4r0k

Another developer closing shop after working with Activision... hmm I'm starting to see a trend here.

Avatar image for YukoAsho

<< LINK REMOVED >> This developer's last couple games were trash. Seriously, Star Wars Kinect? Nothing of value has been lost.

Avatar image for MattyTheButcher

<< LINK REMOVED >><< LINK REMOVED >> Peoples jobs?

Avatar image for yeah_28

werent they the creators of Nocturne? that was a superb game.

In fact, now that i read the list of games they made, its probably their best game of all times.

Avatar image for VicMackey

This is sad to me because, even though their recent games were pretty bad, I played the hell out of the first Bloodrayne game. Bloodraye Betrayal on PSN/XBLA had a great look and perfect soundtrack, but the controls were too imprecise for the kind of platforming in the later levels. If any character deserves to return in a great game with her original voice actress (Laura Bailey), it's Bloodrayne.

Avatar image for Marky360

And another one bites the dust.

Avatar image for wookiegr

A Zombie Dance Kinect game would have saved them.

Avatar image for xsonicchaos

Yeahhaahaha... oh, but oh, the poor guys.

Avatar image for DarkSaber2k

Only the Ghostbusters game was any good (assuming it wasn't that Sanctum of Slime bollocks) so nothing of value was lost. Hell, isn;t Star Wars Kinnect one of the worst Star Wars games of all time?

Avatar image for Colin1192

One less developer pushing out subpar games

Avatar image for thermalmotion

I really enjoyed the first Bloodrayne game.

Avatar image for shreddyz

Somewhere a butterfly is flapping it's wings.

Avatar image for PStrife

Should have really stuck with finding emulation projects from publishers, Activision screwed them over greatly with the recently rushed Walking Dead game which was never going to sell well under those circumstances anyway.

Avatar image for 2Black2Strong

They've been around since the 90's and haven't progressed much since then

Avatar image for gatsbythepig

They created some of the worst games, I am surprised they lasted this long.

Avatar image for eternaldragoonx

Wow I never saw this coming. They made such critically acclaimed games like...................................and.....................even.....................

Avatar image for ADO300

well in a way it is a shame that after such a long time they had to close down, ghostbusters: the video game for the ps3 was freaking awesome & very underrated, but the rest was crap that i played on the ps3 sorry

Avatar image for fernandofan08

Im sorry but.... they got what was coming.

Avatar image for KimCheeWarriorX

damn, theyve been around since the 16 bit era

Avatar image for ldb33

I want a zombie open world game with the graphics and story of the last of us with the survival features of state of decay in the kind of setting of the walking much to ask? Lol

Avatar image for roman4545

Dying Light !

Avatar image for pyro1245

<< LINK REMOVED >> zombie zombie zombie zombie zombie

Avatar image for pyro1245

I remember when Bloodrayne came out and i really wanted to play it but i never did....

Avatar image for 2Black2Strong

Really? What do you expect when you release awful games to stay in business?

Avatar image for Mayleene

Hopefully these genres of games are coming to the end of *their* lives.

Avatar image for Xristophoros

sad that yet another studio is shutting down. but to be perfectly honest, a large company that specializes in sub quality, b-level games, has no place in the industry. games are simply too expensive to create now and looking at this company's track record, they did not impress with any quality titles. they would have been better off (and more viable as a business) breaking up into smaller studios and working on budget titles. i don't know of anyone that will miss this studio or any of the games they developed.

Avatar image for Grenadeh

Good. Hopefully the employees can find a better place to work now.

Avatar image for ghost59

good they need to be closed

Avatar image for g1rldraco7

Wow this is really sad. I hope those people find jobs :(

Avatar image for MateykoSlam

@g1rldraco7 i hope they don't those games were crap

Avatar image for urstupd

<< LINK REMOVED >> omg lol that was cold

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