A while back we reported that Eternal Darkness developer Silicon Knights was effectively on the ropes, with less than five staff members remaining in the company. The outlook has just gotten significantly worse, as it has transpired that the Canadian studio has been ordered to recall most of its recent games - and at its own expense, too.

The order comes after Silicon Knights lost its legal battle with Epic Games regarding the use of the Unreal Engine technology - which was utilised to create Too Human and X-Men Destiny, as well as other titles.

It's not currently known if this order covers the Wii and DS versions of X-Men Destiny or if it is limited to the 360 and PS3 editions, but if we find out, we'll let you know.

Eurogamer sums up the situation neatly:

In May Silicon Knights was ordered to pay Epic $4.45 million in damages after the jury found in favour of its counter claims. The court ruled that Silicon Knights breached their Unreal license agreement, misappropriated Epic's trade secrets and infringed Epic's copyrights in the Unreal Engine 3 code.

The argument between the two parties started back in 2007. Silicon Knights claimed that Epic was holding money back that it should have spent supporting Unreal Engine and pouring it into Gears of War development. Problems with the engine allegedly caused the Too Human studio to ditch the tech at the last minute and develop its own system, resulting in development costs shooting up.

On the positive side, it means that the largely unplayed copy of X-Men Destiny you've been using to prop up your wobbly dining room table could potentially be worth something in the future.