Flagship Studios may have shut down their operations but the Seattle based development team in charge of the free-to-play MMO Mythos has reformed under a new name, Runic Games. The announcement of Runic was made late this week. The team is headed up by Travis Baldree, the former project director for Mythos, and Max Schaefer, a founding member of both Blizzard North and Flagship.

It sounds like the team will be creating new games rather than trying to continue development of Mythos, which was still in beta when Flagship Studios itself collapse last month. T3 Entertainment has already announced that it will take over development of both of Flagship's titles, Mythos and Hellgate London. Meanwhile Runic Games plans to reveal their plans for their first titles in the coming days.