Gamasutra has an interview with Phosphor Games regarding a title they're working on called Awakened. Here's a taster:
When Warner Bros. picked up Midway, it really only wanted the Mortal Kombat studio and back-burnered everything else, right? Were other teams fighting for consideration, and were you showing Hero around, trying to sell it off?
CS: Early on there was no known buyer for Midway. Lots of IP got shown to lots of publishers. All the IP was for sale. Eventually, my understanding is Warner Bros. bought most of it, but not all.
This was a huge shock to all of us -- besides losing your jobs, it is like a friend died. Many of us had two years of eating and sleeping this game. Not sure if it is hope or denial, but you really try hard to keep anything of a team together.
Right away, you start having "offline" communications with the whole team, with a team email distribution list through personal email instead of corporate, giving them updates on how you are still trying to sell this game that we all fell in love with, but it is really hard -- they all need jobs, many have families, they can't just hang out in limbo, waiting.
It is pretty crazy how even after getting let go... how much the whole team was still engaged and wanted to make this game more than anything. Looking back now, it is pretty amazing we have so many of the Hero team working with us now at Phosphor, even though it took us over a year after the layoff to get a physical studio.
Could you take any of it with you?
CS: What we're doing now is, I mean -- we just totally started over. We don't have any connection to the old codebase, story, assets, whatever. What we have is the very cool idea that create-a-player [concept of Hero's central feature] is this really awesome opportunity to change your character and your abilities to whatever you want them to be.
It's crazy, because after you have that power... you get so used to that idea that when you see other games, you're like, "I wish I could just do this or that, I wish I had this other kind of skill."