Yet another game developer seems to have suffered an early death following the release of their main project. This time Shacknews is reporting the Maryland-based Blue Omega Entertainment may have closed up shop. The team was responsible for the recent third person action game Damnation, which was released in late May by publisher Codemasters to universally poor reviews. One of Blue Omega's now former programmers, Geoff Rowland, revealed the shut down a few days ago on his Twitter account.

Shacknews has also gotten court documents that show that Damnation (which began its life as a Unreal Tournament 2004 total conversion mod) had a troubled development history. The documents show that Blue Omega hired two other development teams to do contract work on the game but had issues with both of them and at one point Codemasters tried to remove Blue Omega from the game entirely.