When we first entered into the development and agreement of the development of 'Marvel Universe Online,' we thought we would create another subscription-based MMO. And if you really look at the data there's basically one that's successful and everything else wouldn't meet our level or definition of commercial success.

Microsoft's Shane Kim On 'Fable 2,' Why Marvel MMO Was Canceled And More [MTV Multiplayer]

This weekend's 1UP Yours podcast re-ignited the Microsoft rumor mill, hinting none-too-subtly that Microsoft Game Studios head Shane Kim may be the one on the way out.

When discussing last week's rumor, 1UP's Garnet Lee teased N'Gai Croal with the hint "Hey, N'Gai, do you watch any Nickelodeon like 'Something Possible'?" when the topic surfaced. One could then assume that Lee was referring to the cartoon "Kim Possible" and that the reference was in relation to Mr. Kim from Microsoft. How's that for confirmation?

Bettenhausen chimed in with the "Rumors about Microsoft canceling games and rumors about people leaving Microsoft aren't new. We've been having these for five years. And, the leakiest company around, a lot of times these things turn out to be true." Former GameVideos director Mark MacDonald later tempered the rumor's reality with a warning that the rumor was "something you kind of just heard" as opposed to something that sounded more confirmed.

To hear more of the discussion, skip to about (this is not a typo) 2 hours, 40 minutes into the criminally long recent podcast.

1UP Yours - November 16, 2007 [1UP]

Nothing has been shown of the massively multiplayer online game save a pre-rendered teaser trailer since it was announced in September of last year, but Microsoft Game Studios and developer Cryptic clearly had high hopes for MUO. According to 1UP's report, "serious, potentially stalling, development troubles" may be responsible for reps at MS and Cryptic being mum on its progress.

That Cryptic recently sold intellectual property rights to the City of Heroes franchise, losing a portion of development staff in tandem, may have something to do with MUO's rumored problems.

As of right now, it's all unofficial and Microsoft doesn't seem to be providing any fresh details on the game. Keep your eyes on it though, as Marvel Universe Online's prognosis doesn't sound too promising.

Is Marvel Universe Online Dead? [1UP]

I am assuming layman will be lending a hand in fleshing out the massive 60-year back-story being crafted specifically for the game as well as the planned integration with current Marvel continuity. I'm betting this is going to be the first of many such announcements in the coming months, as to pull this off they're going to need a massive team of comic book talent. That, or the guys who hang out at my local comic shop, the know-it-all jerks.

VETERAN COMIC BOOK INSIDER JOINS FORCES WITH CRYPTIC STUDIOS

LOS GATOS, CA - JULY 17, 2007 - Cryptic Studios, Inc., a leading independent developer of massively-multiplayer online games, today announced that they have added to their growing talent pool with the hiring of a new Design Writer, John Layman. Layman, a twelve-year veteran of the comic book industry and an accomplished game writer, joined the team in their Los Gatos headquarters on Monday, June 25. He will be lending his expertise to Marvel(TM) Universe Online, the highly-anticipated MMO currently in development for PC and the Xbox 360(TM) video game and entertainment system from Microsoft.

"Having a creator like John on our side really demonstrates to our players — present and future — that we strive for authenticity when we bring a universe to life," said Michael Lewis, CEO of Cryptic Studios. "As a company, we are committed to hiring the most creative people in and out of the industry. It's all about delivering high-quality games that stay true to what both gamers and fans of the genre have come to expect from our studio."

Layman's comic credits include written work for several prominent Marvel Comics series, including Gambit, House of M: Fantastic Four, and Marvel Zombies vs. Army of Darkness. He is responsible for several creator-owned titles, including Puffed for Image Comics and Armageddon & Son for Oni Press. Layman also has several notable games to which he has contributed his writing, including Metroid: Hunters for the Nintendo DS(TM) and Marvel Trading Card Game for the PSP(R) (PlayStation(R) Portable) handheld system.

Image courtesy of Silver Bullet Comics

The game, first announced at ComicCon earlier this year, will be developed by Cryptic Studios, the team behind City of Heroes, for Windows Vista and the Xbox 360 and will support "seamless play" between the two platforms.
Kirshen said Marvel decided to go with Microsoft because they wanted a console publisher who was a first party and had experience with computer games as well.

"It was a natural fit for us," he said, adding that they are "delighted" to have Cryptic as the developer.
Emmert said that his team at Cryptic Studios has been working on the MMO for awhile now.

" We are focusing on trying to get the action style game play that console players expect and want," he said. "I really want to create a game that is distinct and unique."

While the game will allow both Vista and 360 gamers to play on the same server, one version will not be a port of another, Marvel's Kirshen said.

"Jack's team is working very diligently to make sure the PC game does not feel like a port of the console or the console is a port of the PC game," he said. "They are designing the game to be functional and fun. That's a huge challenge but I can't think of anyone else who can tackle that."

I asked the Microsoft Game Studio's Pape why they would want to get into the massively multiplayer online market when it is currently so dominated by World of Warcraft.

Not only is Microsoft Games not worried about World of Warcraft, Pape said, the game's tremendous success is one of the motivations for getting into the market.

"For us that is the impetus to make this game," he said. "We have always looked at the space, looked at the Everquests, at the games coming out, the Star Wars Galaxies," he said. "Ultimately you see a lot of the same things."

"When you look at it the World of Warcraft, it is a great game, but it has been a black hole, it has subsumed a large part of the audience," he said. "Marvel breaths fresh breath into the space."

"We believe that the Marvel IP transcends what you have seen before in this genre and will fresh life into massively multiplayer online games."

Kirshen added that World of Warcraft taps a very specific fantasy genre.

"If I was working for an IP with a medieval fantasy property it wouldn't behoove anyone to go out there and be against World of Warcraft," he said. "But the Marvel Universe is based in the real world of today. Super heroes are a fantasy, but it's a very different kind of fantasy."

And, while Marvel hasn't made any specific announcements about where gameplay might take place, there's always the possibility it won't in big cities.

"The Marvel Universe isn't just super heroes running around in big cities," he said. "We have Thor and Asgard, we have Atlantis and we have the Midnight Suns and the other dark slices of Marvel."

That depth is something that Emmert is looking forward to tapping into.

"Our passion for Marvel comics is pretty well known, especially my own," he said. "We wanted to do this thing because of our love of Marvel comics. The main thing we can't stress enough is the breadth of the Marvel Universe. Their entire history is at our disposal."

While Emmert is vocal fan of Marvel, Marvel has not always been a vocal fan of Emmert.

In November, 2004 Marvel Entertainment sued Cryptic Studios and NCSoft, accusing them of designing City of Heroes in a way that allowed gamers to create characters that look like the famed heroes of the Marvel Universe.

When asked about it during my interview, Emmert called the whole thing "water under the bridge."

"The reality is that was just business, Marvel wants to protect its IP which is terrific," he said. "They make their living off Spider-Man, Hulk, Wolverine. I appreciate that protection."

NCSoft, publishers of City of Heroes and City of Villains, declined to comment on the "business dealings of an independent company such as Cryptic Studios."

They did say that they expect to continue working with Cryptic on developing and maintaining both games.

"NCsoft is committed to delivering to its customers the best games possible and this news from Cryptic Studios should in no way affect the high-quality product that the fans of City of Heroes and City of Villains have come to expect," they wrote in a prepared statement. "The "City of" franchise recently released its seventh major content update in the summer and the next free expansion is scheduled to be released later this year. Additional details of future plans for City of Heroes and City of Villains have been spelled out by Cryptic's lead designer, Matt Miller, in an address to the game's community."

Robert Garriott, CEO of NCSoft North America, called the City franchise "an exceptional product."

"City of Heroes and City of Villains have cornered the market on comic-book themed massively multiplayer online games and any competition for this space is several years away," he wrote, "so these games still have a lot of open field running to do."

The game, which has access to the entire Marvel Universe, will allow PC and console players to game against one another on the same server and in the same game.

Check back a little later today to read my interview with Microsoft Game Studios, Marvel and Cryptic. Brian Crecente