Joystiq

Try to follow along: In 2006, Epic Games – the North Carolina-based devs behind Gears of War – opened up its very own Shanghai-based studio to outsource its own Unreal Engine-related work to, as well as cater to external third-party licensees like Ubisoft Shanghai. Cost per man month in North America? $9000. Cost per man month in China? $4000, according to a Gamasutra report. So now we all know what Epic Games China is.

Which is why this morning's announcement that Epic Games China has formed Titan Studios – a "wholly owned subsidiary based in Seattle" developing Sony's colorful (albeit controversial) PSN title, Fat Princess – slightly puzzling. First, we've only known Fat Princess since Sony showed it off at E3 and, even then, the developers were known as "Titan Studios" and not their pre-Epic precursor "Darkstar Industries".

Second, why does the "content production outsourcing and game development services" component of Epic Games want to form its own development studio? (Or, in other words, why didn't Epic Games proper "form" Titan Studios in much the same way it acquired People Can Fly?) Epic's Jay Wilbur explains, "Not only are Titan developing award-winning, original IP of their own, they also have resources available to help other studios increase productivity and minimize risk." Their best business advice in these rocky economic times: Be owned by Epic Games.