Ars Technica reports that System Shock 3 is officially dead:

System Shock 3 is officially dead at Warren Spector’s studio

OtherSide Entertainment stopped work in 2019, Spector confirms.

Warren Spector's OtherSide Entertainment stopped work on the highly anticipated System Shock 3 in 2019, Spector confirmed in a recent interview with GamesBeat. The announcement definitively ends hopes that Spector's studio might still be working with new publisher Tencent on the follow-up to the 1994 PC gaming classic and its 1999 sequel.

The System Shock 3 project was first announced way back in 2015. Spector—known for producing the original System Shock as well as his work on Deus Ex, Thief, and Epic Mickey—made a splash in 2016 when he left academia to return to game development and joined the team at OtherSide Entertainment to work on the planned sequel.

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Otherside Entertainment have confirmed that Tencent will be taking the System Shock series forward in a tweet.

Bluesnews reports that the domain for System Shock 3 and System Shock 4 now belongs to Tencent.

System Shock 3 may have found a savior in Chinese giant Tencent following reports of layoffs at developer OtherSide Entertainment amid financial difficulties. VGC reports both the SystemShock3.com and SystemShock4 domains were transferred to Tencent Holdings last week, suggesting a deal between Tencent and OtherSide to help get the new installment in the action/RPG series back on track.

Video Games Chronicle reports that the marketing manager for System Shock 3 says Otherside is "still here".

This week the company’s marketing and business development VP Walter Somol broke the silence, insisting: “We’re still here.”

Somol is based in OtherSide’s primary studio in Boston, Massachusetts, which worked on 2018’s critically panned Underworld Ascendant, and not the Austin, Texas-based System Shock 3 team.

The VP said in a forum post related to layoffs: “We’re still here. We’re all working remotely right now, probably like most of you. Our new concept is coming along nicely and we are really excited about it.

“We have cool and we think distinctive art style for it and we have that and gameplay coming together in UE4. I know it’s a tease, but I just can’t really say anything about it at this point.”

Somol’s comments don’t appear to be related to System Shock 3, and the marketing head made no further reference to reports its team had been let go. VGC has reached out for comment.

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GameWatcher reports that Otherside Entertainment has recently laid off a number of important developers. What this means for System Shock 3 is not certain at this stage but there are rumblings from former employees.

The former Community Manager then pointed at a thread on RPGCodex, where another former OtherSide Austin employee, going by the username Kin Corn Karn, was detailing the situation behind doors.

"Warren [Spector, Studio Director] kept promising us a play test to give Boston feedback, but for whatever reason it never happened, so most of us didn't play it until it launched. We were horrified. Not only was it a financial loss for the company, the damage to our reputation was irreversible even if Austin had nothing to do with it. When the news about Starbreeze came it cast a big shadow over our hopes to find a new publisher.", they said on the OtherSide Boston-developed Underworld Ascendant which launched in a disastrous state.

"There's a lot of criticism of Warren here that I don't think is very fair. He was the most visible face of the team so I imagine it's natural to assign him blame, but if anything we needed more of his direct involvement. The team had a lot of strong personalities and he was mostly hands-off. In person he has a very gentle, kind, and humble demeanor. He had a good vision for the game, and perhaps some ambitions that were outside our reach, but I don't recall his involvement ever being corrosive.", he continued, describing Warren Spector.

They then proceed to outline a series of problems that made System Shock 3's development difficult. These included developing the title in Unity instead of Unreal Engine 4, an understaffed design team, and "milestone tunnel vision" (which they say saw the work from milestone demos being thrown away).

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An interview from The Escapist who talked to Warren Spector about System Shock 3 and how it is being modernised, while being faithful to the series.

Coming back to a series that was so formative for the entire medium has the usually unflappable Spector feeling a little nervous.

“My usual answer when I’m asked about pressure is, ‘No, I’m not really feeling a lot of pressure.’ Even working with Mickey Mouse a few years ago (on Epic Mickey), I didn’t feel much pressure. But this time I really do,” he said. “We’re making a game that has to live up to people’s memories of these games, not the reality. They were great games — there’s no question. But people have embellished them in their minds to the point where it’s a little scary.”

OtherSide wants to retain the original games’ core identities but filter them through modern conveniences and sensibilities. Spector concedes that the series needs to be updated to appeal to modern audiences, but he’s still taking inspiration primarily from the incredibly dense original System Shock.

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Thanks Farflame!

IGN reports on a new gameplay trailer for System Shock 3 that shows Shodans return.

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Take a look at the brand-new gameplay trailer in the video above, and have a look at three new screenshots below. System Shock 3 is a first-person action game in which you are free to play and explore how you want. You can be a hacker, a stealth specialist, a melee master, etc. as you uncover the mysteries of the space ship that's been taken over by the evil AI, SHODAN.

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PC Gamer reports that Otherside Entertainment will self publish System Shock 3 if it has to.

OtherSide could, and will, publish the new System Shock itself if it has to, but Spector said doing so would be "a huge distraction," and require hiring new staff with expertise in the field. 

"The reality is, OtherSide is a company of developers who want to develop games," he said. "We don’t particularly want to be a publisher. [OtherSide founder] Paul Neurath and I have worked with publishers before, Origin self-published when I was there, and we don’t want to get into the market of distributing stuff."

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Thanks Farflame!

Some new screenshots and a teaser video has appeared for System Shock 3.

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VG24/7 reports that there is still publisher interest in a System Shock 3.

Update: VG247 reached out to Otherside Entertainment for comment on the ongoing development of System Shock 3.

“Thanks for reaching out and for your concern,” studio director Warren Spector said via email. “That being said, I’m not sure how concerned you ought to be. Tumultuous times are pretty common in the game business – tumultuous isn’t so bad! We parted ways with Starbreeze (amicably) which means we are in the process of lining up a new publishing partner. Happily, given the pedigree of System Shock and the progress we’ve made so far there’s already a lot of interest.

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@news.cision Starbreeze has sold back publishing rights for System Shock 3 to Otherside Entertainment due to financial difficulties.

Starbreeze acquired the publishing rights for “System Shock 3” in 2017 and has since then partly financed the development of the game. The title owner OtherSide Entertainment and Starbreeze have now reached an agreement whereby Starbreeze returns the publishing rights for the game to OtherSide and will be able to recoup the development costs.

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Redbull interview Warren Spector about System Shock 3.

Of course, the playing field has moved on a lot in the last quarter of a century. It's tempting to ponder if these titles really stand up when compared to subsequent examples of the genre. Thankfully, Spector insists that this new outing will be brought bang up to to date. "We've learned a lot about creating immersive simulations since the '90s, and you'll see those lessons brought to bear in System Shock 3," he says.

In terms of inspiration, he admits that he often has to fight the urge to reference another of his most famous games, but he also has admiration for other recent titles. "I find it hard not to be influenced by Deus Ex, for better or worse. I have to work hard not to turn the games I work on into Deus Ex-style games. There are some things about Shadow of Mordor that we find appealing, though it's obviously a very different style of game. Prey, most recently, certainly feels System Shock-y. But we're really trying to do our own thing rather than borrow from other games."
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@news.cision System Shock 3 will be published by Starbreeze who are investing 12 million dollars. Otherside will retain the IP.

STOCKHOLM, SWEDEN ( March 14, 2017 ) Starbreeze AB, an independent creator, publisher and distributor of high quality entertainment products , has signed a publishing agreement with Otherside Entertainment regarding the game System Shock 3 . Starbreeze will invest $12 million to bring the game to PC and other platforms.

System Shock 3 - The latest in the series of landmark, award-winning games from Otherside Entertainment is in development under the direction of industry legend Warren Spector and a dream team behind such ground breaking games including the original System Shock & System Shock 2 , as well as Thief: The Dark Project and Deus Ex .

"System Shock is one of those iconic franchises in the history of games that still gets my blood going and Mr. Spector is one of the founding fathers of the modern action RPG" said Bo Andersson-Klint, Starbreeze CEO. "We're greatly looking forward to bringing System Shock 3 to players world wide in our collaboration with Otherside Entertainment and Warren Spector's team. I'll be first in line to play".

"We are thrilled to be partnering with Starbreeze for System Shock 3," said OtherSide's CEO Paul Neurath. They truly get games and gamers, and have been able to translate that understanding into a robust publishing business, and build thriving gaming communities around their franchises."

Starbreeze will be able to recoup 120% of its full investment including marketing costs. Starbreeze share of revenues will become 50% after the investment is recouped. Otherside Entertainement will retain 100% of the intellectual property relating to System Shock 3.

Farflame spotted some concept images and news about System Shock 3:

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The Return of Shodan

Last week, I spoke to Spector again to find out what I could about the game, which is likely a few years away from release. He gave up some basic information about the story, including details of returning characters that will probably be welcomed by fans of the sci-fi action series.

First things first, Spector talked about how Shodan will definitely be a big part of System Shock 3.

"Shodan is the heart and soul of System Shock games," he said. "That's the beauty of System Shock 3; nobody else has Shodan. She'll be at the center of the game, but I also want to put her through some changes.

"Arturo has been working on our version of Shodan, which is going to be interesting and different from what people expect. I expect it will infuriate some people but definitely get people talking."

Shodan — her name is an acronym of Sentient Hyper-Optimized Data Access Network — was the central antagonist in the first two System Shock games. Originally created to service a space station, she is tasked with deleting incriminating files. The player in the original game is a hacker who removes her ethics constraints. This turns out to be a bad move.

Over the course of the two games, Shodan reveals herself to be skilled in manipulating systems and people. Her goal is to annihilate the human race. She taunts and mocks the player. Even in defeat, she finds a way to survive.

"In System Shock 3 I want to explore Shodan's motivations," said Spector. "In the first two games her plan was to destroy humanity because, with the removal of her ethical constraints by the hacker in the first game, she's going insane. But we never explained why she wants to destroy humanity. So we're going to be exploring the idea of a super intelligence and what would motivate a super intelligent AI."

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The Gaming Ground has interviewed Night Dive Studios about System Shock 3 and System Shock Remastered:

I got really excited and thrilled when I got a chance to do an interview with Night Dive Studios founder Stephen Kick. Because as you might already know, Night Dive Studios handles both “System Shock Remastered” and “System Shock 3“. And I just happen to be a huge fan of the “System Shock” series. So I tried to ask Kick as many good questions as I possibly could think of (I´m quite happy with the result I have to say). Any ways, please enjoy the interview =)

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Robin TGG
How have the reaction and feedback been for SS3, the remake of SS1 and the Enhanced Edition of SS1 so far? Personally, as a System Shock fan, I couldn´t possibly be any happier.

Kick – Night Dive Studios
After my first phone call with the then current rights holders, I dreamt about the possibility of a Shock 3 but never in my wildest dreams would I have imagined that Night Dive would be responsible for making it all happen. As a fan myself it’s been overwhelming and I think many other fans feel the same way. I think it’s even more special because it was so unexpected and one of those things we all fantasize about at some point in our lives. Shock is something so many people love and being able to bring it back for all to enjoy is why I started Night Dive.

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Gamasutra has interviewed Warren Spector about his return to the game industry:

The Comeback: Why Warren Spector is making games again

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Why go back to full-time game development?

There are a bunch of reasons. You know, the first thing is, when I first started talking to the university, I told them I'd take a three-year commitment, because the game industry changes so quickly. I was worried that after three years, y'know, the relevance of what I know would start to diminish.

And I wanted to make sure I didn't become one of those teachers who used to make games, who used to know how games were developed and why. I knew I needed to keep my skills honed, so that was part of it. And part of it was just, y'know, I make games. It's kind of what I do. I've been getting the itch to make something. It's been coming on for a while now.

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Let's dig into design, for a minute. How has the field of game design changed in the last few years, from your perspective, and where do you hope to take it?

I can't believe I'm about to say this -- I'll never work in this industry again -- but in the mainstream space I really haven't seen a whole lot of progress. It seems like we're getting more finely-tuned, prettier versions of games we've been playing for years.

Thank god for the indie space, there are people trying interesting things there. What I want to do, is I see a variety of places where we could make some strides that would help take games to the next level. The biggest one, for me, is more robust characters and character AI. We've gotten very good at combat AI, we've made great strides there, but I don't think we've done much in the world of non-combat AI and interacting with people -- human or otherwise. We haven't done a lot with conversation, and establishing emotional relationships with characters in games. So I'd very much like to play with that.

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PC Gamer reports that Warren Spector joins the Otherside team:

Warren Spector joining Otherside to lead System Shock 3

When Otherside Entertainment, creators of upcoming Ultima Underworld successor,  Underworld Ascendant, slipped us a teaser for System Shock 3 in early December, that was cause for the hype train to roll out—founder Paul Neurath worked on the original System Shock, after all. Now the train is in danger of becoming a runaway as Warren Spector joins the company.

Spector was producer, designer and director on the likes of the first System Shock,  Deus Ex and the Ultima series. [...]

"When the opportunity to have a bigger role in bringing Underworld Ascendant to life, as well as playing in the System Shock universe once again, helping to bring these games to a 21 ^st century audience, I just couldn’t say no," Spector said in a statement. "Working on System Shock was one of the most fulfilling things I’ve done in my career and it’s hard to describe how much I’m looking forward to sharing with players what SHODAN has been up to since the last game was released.”

Those of you dying for the next System Shock installment might be waiting a while; it's just now entered concept development.  It's not gonna be out for some time.

A couple of weeks ago, we had the unexpected surprise of System Shock 3 being announced. Night Dive Studios recently acquired the rights to this legendary franchise’s trademark and is now in the process of remaking the first System Shock.

However, they are partnering with Otherside Entertainment (which had previously secured rights to all future versions of the franchise) in order to develop the brand new System Shock 3. Without too much fanfare, amidst a blog post on the official website of Underworld Ascendant, Otherside provided some additional information on what’s going on behind the scenes right now.

"Like all holiday seasons, it’s great when old friends comes by for a visit… even if they’re megalomaniacal AIs.

Yep! In case you missed it, we’re excited to announce System Shock 3.

If you swing over to the SS3 teaser site, you can hear voice actress Terri Brosius (System Shock 1 & 2, Dishonored) reprise her role as the voice of SHODAN and see an early peek at the evolving ‘next generation’ look of the character by concept artist Robb Waters.

System Shock 3 is currently in the very beginning stages of concept development and we won’t be digging fully into game production for some time. Our studio focus today remains squarely on Underworld Ascendant. But we thought it’d be fun for our Underworld Ascendant fans — many of whom are fans of the System Shock series as well — to get a peek at what will be coming down the road."

System Shock fans will have to wait at least a couple more years, then, as Otherside Entertainment is already busy. Underworld Ascendant had a very successful Kickstarter last February, raising over $860K; pledging is still possible on the official website (via PayPal) and the total crowdfunding amount is now at $915K, approaching yet another stretch goal.

A combat prototype (which looked very promising in this video) is already available to backers, with the game tentatively set for release in November. With talented and experienced ex-Looking Glass developers like Paul Neurath, Nate Wells and Robb Waters, things are looking up for both System Shock 3 and Underworld Ascendant.

More information.

Cinemablend can think of 7 things that System Shock 3 should have:

7 Things System Shock 3 Needs To Have

Otherside Entertainment is working on a new entry in the venerable System Shock series. The new game has been teased but we have absolutely no idea what the game will be like, whether or not it will be a first-person shooter, a third-person RPG or anything in between. 

The only thing we know about System Shock 3 is that it's coming and that Otherside Entertainment is working on it according to their teaser website. The new game could definitely benefit from some really cool and necessary features, some returning and some new. So we thought we would take the opportunity to explore the seven things System Shock 3 needs to have. 

Weapon Degradation

Weapon degradation was featured in System Shock 2 but it definitely needs to make a comeback for System Shock 3. This feature would make the game more strategic and scarier to boot.

While most gamers might assume weapon degradation could end up being tedious like in Far Cry 2,  it can also keep the gameplay fresh by ensuring players don't become too comfortable relying on just one weapon for too long. Some games have a tendency of giving you an overpowered weapon and so much ammo that there's no reason to switch. A properly implemented degradation system could keep the game feeling tense as players will need to monitor how often they use a weapon and when to repair it. It also forces players to run rather than fight in some cases. [...]