If you’re an old school gamer, you may remember the name Rocket Science Games. 

In the early- to mid-1990s, Rocket Science was, in the eyes of the media, one of the star developers of the industry. It raised over $12 million from venture capitalists. It was on the cover of Wired magazine. And it had the film industry captivated with its “Hollywood meets Silicon Valley’ pitch.

There was a problem, though. Despite the incredible publicity and hype for the company, it hadn’t yet released a game – and when the games did come out, they weren’t that good. “Loadstar: The Legend of Tully Bodine” and “Cadillacs and Dinosaurs: The Second Cataclysm” probably don’t ring too many bells.

Rocket Science ended up getting emergency funding from SegaSoft and the games got a little better (you might recall “Obsidian” or “The Space Bar”). Ultimately, though, they still didn’t catch on with players. In 1997, four years after it burst onto the scene, Rocket Science was gone.

Steve Blank, a serial entrepreneur who now teaches at U.C. Berkeley, Stanford University and the Columbia University/Berkeley Joint Executive MBA program, was CEO of Rocket Science Games. And he has recently begun writing a blow-by-blow account of what went wrong at the company.

It turns out the problems started before the company was really up and running.

While the cinematic version of “The Matrix” had the stylized feel of a AAA video game, its gaming companions never quite worked.

On July 31, the most ambitious of those tie-ins, “The Matrix Online” will jack out for the last time, as Sony Online Entertainment pulls the plug on the game.

To its credit, the massively multiplayer online game lasted four years, which is more than most people expected at launch. Initially developed by Monolith and published by Sega, the game was quickly met with mediocre reviews. 

SOE took over publishing rights a short while later, which likely saved it from a much earlier shutdown. The game eventually became part of SOE’s Station Access package (letting players have subscriptions to several MMO games for a single monthly payment).

Sony declined to comment about how many people are still playing the game these days, citing its policy against releasing subscriber numbers. (That’s a flexible policy, incidentally. The company has been touting “Free Realms” user base loudly of late – and bragged about “EverQuest” players back in the day.)

It’s frustrating that “The Matrix” never became a strong gaming franchise. Both “The Matrix Online” and the film’s single-player titles fell far short of expectations, despite having hefty development budgets. (“Enter the Matrix,” an single-player game that is unaffiliated with "The Matrix Online," reportedly cost over $30 million to create, making it one of the most expensive games ever developed at the time.)

Maybe it was comparisons to the movie’s stylish feel. Maybe the plot was thinner when played out in long form. Or maybe the games just stunk.

Whatever the reason, we’ve now learned how far the rabbit hole goes – and where it ends.

Most video game professionals will tell you that switching a game from one developer to another mid-production is a costly and difficult move that rarely makes sense artistically or financially. You have to transfer assets and get an entire new team trained not only on the technology modified for the game, but creatively in the mindset that has gone into its world, characters, and mechanics. It's really hard to justify.

And yet... It sure seems to be happening this year. First came "Splatterhouse," which Namco Bandai took away from BottleRocket in February. The publisher is currently, according to my sources, considering what new developer it will assign the game to (I hear the internal team that made "Afro Samurai" is a candidate but not a sure thing). On Friday, Ubisoft confirmed that it took "I am Alive" away from independent developer DarkWorks and is giving the game to its internal studio in Shanghai to complete.

And of course there's Sega's two "Aliens" games, previously in development at Gearbox and Obsidian, both of which have been taken away from their respective independent developers while the publisher figures out what to do with them. According to my sources, the games were put on hold purely for budgetary reasons. Sega is suffering from the recession and its own business problems and can't justify spending the millions it would take to finish producing them, especially since they might not have even come out this fiscal year.

That leaves Sega with two games it would still like to complete, as I've previously reported. But doing so will probably require, yes, handing them over to new developers.

I'd hardly call it a major trend. But it is clear that publishers seem willing to do what the convention wisdom tells us they shouldn't, which indicates something is changing in the economics of the industry, or the incentives publishers are encountering during a recession, to make taking games away from outside developers mid-production seem more logical.

Joystiq has been reporting that Sega has pulled funding from two big games based on Fox's "Aliens" franchise: the RPG at Obsidian and "Colonial Marines," in development at Gearbox. There has been speculation that the games might be canceled as a result.

However, I've just spoken to a source in a very good position to know what's up with both games who told me that they're definitely not canceled. Production is expected to continue and the games, both of which are well into development, will come out. But quite possibly not with the developers they're at. It's looking like it could be a "Splatterhouse" situation (if you don't know what that means, find out here).

My source described the situation at both Obsidian and Gearbox as "fluid," having to do mainly with the quality of the work. Sega, apparently, is not seeing what it wants on the schedule it wants to see it. Which is probably why, as Joystiq reported, it has pulled funding and those developers are hurting.

It remains to be seen how Sega will proceed, whether and when it will assign the games to new developers, and when they'll come out. But the plan definitely remains that gamers will be getting an Aliens RPG and "Aliens: Colonial Marines," as well as the recently announced "Aliens vs. Predator," in the not-too-distant future

(Part of our series counting down the top ten videogames of 2008 -- with interruptions for the most disappointing and most overrated -- according to Variety critics Leigh Alexander, Tom Chick, Chris Dahlen and Ben Fritz. Full details are here. To check out the rest of the list, click here. Most importantly, vote for your favorite games of 2008 in the Cut Scene reader awards here.)

Leigh Alexander

Midnight Club: Los Angeles (Rockstar / Rockstar San Diego)

A car game that even a reviewer who hates car games can love. Its graphical dazzle is as glitzy as the world of West Coast street racing it portrays with the satirical disdain that serves as developer Rockstar's hallmark. The technically impressive in-game transition from a realistic Los Angeles to an overhead map lit with linking lights is one of the year's coolest special effects, and the point system for passing races is welcome and friendly for players not quite so bad-ass as their gleaming, fully customizable car might indicate. Energizing, enervating and infinitely replayable.

Tom Chick

The Club (Sega / Bizarre Creations)

As a commercially successful game, "The Club" was doomed. A shooter based on replaying the same levels to see if you can improve your score? But consider that it was from a developer known for the Project Gotham Batman-less racing games (a game based on driving the same route to see if you can improve your time?). And consider this is also the developer of the maddeningly addictive score-based compulsion of "Geometry Wars" games (it's all in the multiplier, baby!). Now it clicks. And by "clicks", I mean it slides into place with the decisive ka-thunk of chambering a new shell in a shotgun. Bizarre  Creations has taken what they know and managed to create something I haven't seen in a very long time: a shooter that's unlike any other shooter I've ever played.

Chris Dahlen

Fable 2 (Microsoft / Lionhead)

I went back and forth on whether to list this. On the one hand, while I was playing this game, there was nothing else in the world I’d rather have been doing. Bartending is my mini-game of the year; the real estate feature made "Fable II" an ideal dollhouse for grown-ups. At the same time, the story was underwhelming, and only one of the characters had three-dimensions – and it wasn’t the player. Or the dog. I felt like the entire game was just setup for the Big, Important Choice at the end, and while the choice was haunting, I wound up feeling played.

Ben Fritz

Metal Gear Solid 4 (Konami / Kojima Prods.)

Based on everything I read, I thought I’d need earn a PhD in Kojima Studies to even remotely enjoy this game. But it turns out “MGS 4” has loads to offer anyone who appreciates an uncompromised directorial vision and expertly crafted stealth gameplay. Sure, the overwrought cutsenes are as creaky as Snake’s knees, but just like its hero, “Metal Gear Solid 4” unapologetically holds onto its old school values and proves they’re not quite as irrelevant as those in thrall of the new would like to think.

Coming today at noon: The ninth best videogame(s) of 2008

At first mention, having RPG expert Bioware take on Sonic the Hedgehog, traditionally known for ultra fast paced racing, seems like a very odd choice. Turns out that playing "Sonic Chronicles: The Dark Brotherhood" doesn't make the whole idea any less odd.

Variety critic Leigh Alexander calls "Sonic Chronicles" "surprisingly fun and competent," but notes that it's just "not the shot of adrenaline the franchise needs to return to its former glory. It's basically RPG-lite, she explains, with the cheesy story and solid mechanics that one would expect from a merging of "Sonic" and Bioware. There's also a fun use of "Elite Beat Agent" like timed touch screen taps to add a little more excitement to turn-based battles.

Still, there's no escaping the fact that turn-based combat and deep story are not Sonic's best traits. Nor that we've been waiting a very long time for a great "Sonic" game that's still speed. And we're still waiting.

Here's an excerpt from Leigh's review:

Aside from the exploration, the core gameplay is very much RPG-lite: Arrange members of party for optimum advantage, level them up through battles, and teach them signature techniques that exploit enemy weaknesses. Result is a nicely balanced game that’s engaging but not too demanding, accessible while still challenging, and colorful without being ridiculous.

And you can read the whole thing here.

Back in June I was writing about how rare it is for a game tied to a movie launch to have multi-player, so I should make note of the rather bizarre announcement today that Sega has released a multi-player expansion pack for "The Incredible Hulk," about three months after the game was released to very enhhhh reviews (including our own). Sega and developer Edge of Reality must have had this little add-on in the works already and figured it was worth just finishing, since given the game's reception, there wasn't exactly a clamor to get new content, despite the fact that, according to TeamXbox, the content was originally promised back in late June (did anyone notice that?). And since it's free, it's no more money in Sega's pocket. If anyone has the game and a friend with it, they can now do some co-op missions, for what it's worth.

I was just thinking a few weeks ago that you pretty much never seen any multi-players in videogames based on movies. The reasons are probably obvious: Those games are made on a very tight deadline and mp is an easy option to drop. Plus, they're made on the theory that people want to experience the story of the film (or something tangential to it) and so a solid single-player experience becomes more important. In addition, perhaps, publishers may somewhat cynically realize that interest is often only strong around the movie's release and most of these games won't be played much after a few months, so they don't need a long life like "Halo" or "Call of Duty."

It's a shame, though, because I've seen some movie-based games with solid action mechanics that could have worked well with multi-player combat. "The Bourne Conspiracy," for instance, or "Iron Man."

So color me surprised when we ran a review in Variety this week of the first movie-based game that I've seen with multi-player. And doubly surprised that it's a kids' game: "Kung Fu Panda." Yes, it's only four players and it's offline. But still, there's combat, there's co-op, there's mini-games. That's a big step up from what we're used to from these games. Hopefully this is something more publishers and developers will do, because it should add to the respect for and value of these much derided games, which sometimes get a worse rap than they deserve (and sometimes get exactly the terrible rap they deserve).

Josh was overall pretty impressed with Activision's "Kung Fu Panda," saying its "dynamic action, solid production values and surprisingly robust multiplayer options help it stand above the average family movie tie-in." You can read the whole thing here.

And also don't miss Tom Chick's review of Sega's "The Incredible Hulk,"  which he says has a certain charm, but is basically an inferior knock off of 2005's much praised "Incredible Hulk: Ultimate Destruction."

Update: A reader correctly pointed out to me that the "Fantastic Four: Rise of the Silver Surfer" game had four player co-op.

I am officially sorry I wasn't able to stay in San Francisco yesterday in order to attend Sega's briefing. Why? The announcement of its partnership with Platinum Games and the three titles they have in the works seems like it's far and away the most exciting thing to come out of this week's orgy of press junkets.

Why? Well the company is headed by Atsushi Inaba, one of the key figures behind my absolute favorite game of 2006, "Okami," as well as innovative (if not ultimately as appealing) titles like "Viewtiful Joe" and "Phoenix Wright."

Capcom, of course, famously dissolved Inaba's last studio Clover after "Okami" failed commercially. But just as everyone in Hollywood went after the talent behind "Arrested Development" after that incredibly well respected, if unpopular, show got canned, it's no surprised that someone has eagerly signed up for four games from Platinum.

The first, "Mad World," sounds awesome. A super sytlized, over-the-top hard-core action for the Wii fills a big hole in the market that has thus far only had one contender in "No More Heroes." Between the early screenshots and this description from Kotaku (who did stick around to see it), I'm already stoked:

Jack's right hand is a chainsaw, and bodies cut vertically in half fell to either side in a splash of vibrant red blood. When a heart was torn from a ribcage, the bad guy would fall back with Jack still clutching the muscle, before crushing it in his hand. Impaled black and white bodies oozed red in great rivulets of blood.

And also, I've got to say, glad to see that Sega's growth plans involve taking some real artistic risks, not just relying on Marvel movie licenses (not that there's anything wrong with that, so long as they aren't all as lame as "Iron Man").

Other promising, if not quite as obviously original and viscerally appealing, games announced from Platinum were DS RPG "Infinite Line" and and 360/PS3 fantasy/action game "Bayonetta."

Apparently it is... GameFly just came out with its top 10 list for last week and no. 1, above either version of "Grand Theft Auto IV," is "Iron Man" for Xbox 360.

Obviously this doesn't mean that the "Iron Man" game is overall more popular than "GTA IV." I suspect we would have heard from Sega if sales were close to $500 million in the first week. But it is a sign that the movie's huge popularity is driving interest in the game, despite mediocre reviews (including mine).

Most likely, a lot of GameFly subscribers have bought "GTA IV" and consider "Iron Man," which isn't exactly deep, to be more of a rental they can finish and then send back.

Still, interest is interest and while rentals don't necessarily equal sales, I suspect this is a sign that we could see some solid figures for Sega's "Iron Man" game when NPD comes out with its May data next month.

For now, here's GameFly's cross-platform top 10 for last week. Also noteworthy: "The Bourne Conspiracy" is already no. 3 several weeks ahead of its release:

1. Iron Man, Xbox 360, Sega
2. Grand Theft Auto IV, Xbox 360, Rockstar
3. The Bourne Conspiracy, Xbox 360, Sierra
4. Ninja Gaiden 2, Xbox 360, Microsoft
5. Mario Kart Wii, Wii, Nintendo
6. Boom Blox, Wii, EA
7. Grand Theft Auto IV, PS3, Rockstar
8. Incredible Hulk, Xbox 360, Sega
9. Iron Man, PS3, Sega
10. Lego Indiana Jones, Xbox 360, LucasArts

Anybody who played the lame "Superman Returns" videogame from Electronic Arts in late 2006 (Variety review here) will remember what it's like to marry great technology (Supes flying around Metropolis with completely awesome) with atrocious level design (basically, there was nothing fun or intersting to do in Metropolis).

It seems like Sega and Secret Level don't remember that, or took the wrong lesson, because the "Iron Man" videogame has the exact same problem: awesome powers and controls for the main character joined with the most boring and banal level design imaginable. As soon as you're no longer impressed just by making Iron Man fly, hover, and shoot all his different weapons, you'll notice how bored you are.

Here's the first paragraph of my review that just ran in Variety:

"You are a one man army," promises the slogan for Sega's adaptation of Marvel and Paramount's "Iron Man" movie. Problem is, one-man armies need something to do besides fly through generic environments fighting hordes of generic enemies. "Iron Man" mars its solid technology and smooth controls with consistently awful level design, resulting in yet another mediocre movie-based game whose only hope for sales will come with the pic's heavily hyped opening weekend.

And you can read the whole thing here.

Leigh Alexander has our review of "Condemned 2: Bloodshot" and reports that it's a disconcerting mix of grizzly horror and CSI-style forensics. My favorite detail: "To keep his gun hand steady, Ethan must continue swilling alcohol salvaged from dirty alleyways and abandoned buildings."

Joe Lieberman is really gonna love this one!

Here's the intro to Leigh's review:

“Condemned 2: Bloodshot” will strike some players as a pulse-pounding, mind-challenging delight; for others, it will be a nausea-inducing nightmare. Investigator Ethan Thomas’ sophomore outing unevenly combines innovative CSI-style forensics with a bloody barrage of alcohol-induced, unsettlingly visceral violence. Ultimately, the game can’t seem to decide whether it’s a gritty cop story or a cult supernatural horror-fest; as a result, it won’t fully appeal to fans of either genre.

And you can read the whole thing right here.

Variety videogame critic Tom Chick has a very fun review of Sega's "The Club" up today. I'm kind of fascinated by the game, which apparently dispenses with all that silly stuff like story, high-end graphics, intricate level design, etc. and just focuses on running, shooting, running, shooting, and then running and shooting some more. Sounds a little boring, but Tom compares it to developer Bizarre Creations' "Project Gotham Racing," which also sounds boring at first, but is perfect for the kind of gamer who loves getting better and better racing on the same track, shaving seconds off his or her time and perfecting that slide on the third curve. "The Club" is apparently the same thing, but for shooting dudes in the head.

Here's the first paragraph of Tom's review:

Sega's new action game "The Club" dispenses with storyline, tactical depth, cinematic set pieces and colorful settings to deliver a kind of shut-up-and-shoot action game. The lack of pretense -- or is it depth? -- won't be for everyone, but fans who want to boost their skills will find it refreshing and uniquely addictive.

You can read the whole thing here.