Nerval's Lobster writes: Over at Kotaku, there's an interesting story about the reported demise of Darkside Game Studios, a game-development firm that thought it finally had a shot at the big time only to collapse once its project requirements spun out of control. Darkside got a chance to show off its own stuff with a proposed remake of Phantom Dust, an action-strategy game that became something of a cult favorite. Microsoft, which offered Darkside the budget to make the game, had a very specific list of requirements for the actual gameplay. The problem, as Kotaku describes, is those requirements shifted after the project was well underway. Darkside needed more developers, artists, and other skilled tech pros to finish the game with its expanded requirements, but (anonymous sources claimed) Microsoft refused to offer up more money to actually hire the necessary people. As a result, the game's development imploded, reportedly followed by the studio. What's the lesson in all this? It's one of the oldest in the book: Escalating and unanticipated requirements, especially without added budget to meet those requirements, can have devastating effects on both a project and the larger software company.

Read more of this story at Slashdot.