Silicon Knights says it is still working despite downsizing, closing its offices, and selling equipment.

Too Human developer Silicon Knights says it is "definitely alive" despite the studio's former president Denis Dyack's departure to form Precursor Games.

Talking to Polygon, Silicon Knights chief financial officer Mike Mays declared that the studio was still alive. Despite the assurances, Mays would not say where Silicon Knights is currently located, what projects it's working on, or how many employees the studio currently has.

However, the studio did confirm it has closed its offices, downsized its staff, and sold some of its equipment. Some computers were even sold to Precursor Games, the new studio founded by ex-Silicon Knights staff.

"Silicon Knights was selling off extra assets to laid-off employees and we, along with others, purchased some of them," said Precursor Games CEO Paul Caporicci when asked. "Like so many others who have been laid off in this difficult economy, we are simply trying to turn a tough situation into something positive. This helps give us an opportunity with Shadow of the Eternals to give the gamers something that they have been wanting."

A $4.45 million lawsuit between Silicon Knights and Epic Games ruled in favour of the latter in May 2012, and in November 2012, the studio was ordered to destroy all copies of its ill-fated Xbox 360 action role-playing game Too Human and X-Men: Destiny.

Precursor Games is currently working on Shadow of the Eternals, a spiritual successor to cult survival horror title Eternal Darkness.

Caporicci also asserted that Precursor Games hasn't inherited any of the Silicon Knights technology currently tangled up in a lawsuit with Epic Games. "We are a completely separate and independent entity and always have been," he said.

"Precursor is not and never has been a party to that case, and is not involved in it whatsoever. We purchased completely wiped clean machines, that is all. There is no basis for any liability or any claim against Precursor Games."

"We wish Silicon Knights the best of luck in their future," concluded Caporicci.

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