Canadian Too Human developer Silicon Knights can’t seem to stay out of the news recently. Locked in an ugly legal battle with Epic Games over the Unreal Engine, predicting the downfall of the games industry via used games and recently bemoaning the lack of promised funding from the Canadian government, the independent developer has had quite a busy print week.

The section of government responsible for the funding however has now responded to the allegations, saying that Silicon Knights has failed to meet conditions required to receive the funds.

Talking to GamesIndustry International, Sr Advisor of Media and Communications in the Ministry of Economic Development and Innovation Brigitte Marleau said, “Ontario has a longstanding track record of partnering with the province’s digital media industry, but we also have an important responsibility to ensure accountability with taxpayers’ dollars.”

“We announced a conditional funding agreement with Silicon Knights on July 14, 2011. Because the company has not yet met the conditions of the agreement, no funding has been provided,” she continued.

Marleau further goes on to say, “Over the past five years, Ontario has successfully partnered with businesses to create thousands of new jobs, leveraging millions of dollars of investment and improving the competitiveness of its economy. This includes Ubisoft which has produced blockbuster titles such as Assassin’s Creed: Brotherhood, and No More Heroes 2: Desperate Struggle.”

Unfortunately the exact conditions not met can’t be detailed as they’re confidential, but Silicon Knights founder Denis Dyack isn’t buying it.

“Silicon Knights has met all the conditions for the grant and is confused by this response. We are continuing to look into the situation,” he said.

Source: GamesIndustry

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