Looking Glass Studios is dead

are reporting that Looking Glass Studios has closed down. According to the report, "a source at the studio indicated the company is in dire financial straights", and that a proposed deal with publisher Eidos may have fallen through due to Eidos' own current financial difficulties.

Looking Glass is the company behind the Flight Unlimited, Thief and System Shock games, as well as cult classics like Ultima Underworld (a first person RPG that was years ahead of its time) and Terra Nova (the game that inspired Starsiege Tribes). This is truly a sad day for the gaming industry, as one of its most creative companies goes to the wall...

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