According to a forum thread posted at the official Hellgate: London forums, Flagship Studios is still in business but with a MUCH reduced workforce. Check out what was said:

San Francisco, CA (July 14, 2008) -- Flagship Studios has announced today that despite rumors to the contrary, the company is still operating.

"It is with deep regret that I must announce that Flagship Studios has laid off most employees. However, the core management and founding team members are still at Flagship." said Bill Roper, CEO of Flagship Studios. "The past five years have been an incredible experience for us, but unfortunately, we couldn't sustain the size of the company any longer."

Flagship Studios owns the rights to all its technology and IP, including Hellgate: London and Mythos. Due to the current situation, Flagship will not be taking any new subscribers for Hellgate: London, and all current subscriptions will not be billed.

Flagship wishes to extend their heartfelt thanks to those that have supported the company and games over the past five years.

It is still worth noting that over twenty four employees listed on "Linked-In" are now listing themselves as former employees of Flagship. Yet there is a very narrow silver lining in that the studio founders still retain the rights to the IP and that subscribers to Hellgate: London are not being charged to play (though I'd still be ticked if I'd forked over the one-time fee of $199 to be a "founder").

What this means for the development future of Mythos and the continued content additions for Hellgate: London remains as yet unknown. We'll keep you posted.