Epic Games today announced its acquisition of Utah-based Undertow developer, Chair Entertainment Group. Under directors Donald and Geremy Mustard, and CEO Ryan Holmes, Chair Entertainment becomes a wholly owned subsidiary of Epic, keeping both its name and "its focus on creating new original game properties which utilize Epic's Unreal Engine technology."

We've placed the full press release, which contains the usual "We're thrilled to buy this awesome company!" and "We're so glad this amazing company bought us!" quotes, after the break. Not specifically mentioned is how the acquisition will affect Chair's Ender's Game projects, if at all. After requesting comment, we were promised an update "as soon as one is available." Funny, we were just about to tell you readers the same thing.

There's an expansion available now for XBLA game Undertow, but this time around the content is going to cost you. The special part is continuing the aquatic action won't cost 400 MS points as originally expected because it's currently available for 200 MS points ($2.50 in surface currency). If this is an accident and you're a fan of Undertow, now's the time to purchase it!

If the half-price sale hasn't sold you, here are some details on the Path of the Elect expansion. It includes five campaign levels, a new alien race called the "Elect" and four multiplayer maps. Now, go grab this deal in case it doesn't last.

Update: The expansion price has been changed to 400 points.

A new collaboration between renowned author Orson Scott Card and Undertow developer, Chair Entertainment, will see the popular sci-fi novel Ender's Game adapted into a series of video games "across all next-generation consoles, handheld platforms, and PC." The first offering is expected to begin development later this year and will be released in downloadable format.

As the story of Ender's Game revolves around the protagonist's experiences within the "Battle Room" -- home to a simulation of futuristic combat -- it should come as no surprise to learn that Chair Entertainment's goal is to place players into the very same virtual environment. Turning Ender's fictional game into a "real" one certainly makes sly sense within the context of the book, though we would be slightly concerned if the people on our Xbox Live friends should start turning up dead.

In a recently published interview, N'Gai Croal managed to catch-up with the Mustard brothers, Donald and Geremy, founders of Chair Entertainment. They described the Unreal-engine game with great relish, noting that the "the unique characteristics of the Battle Room will make a very compelling, competitive game play experience." Let's hope it can make up for the bad taste left in our mouths by one of their previous Card collaborations, Advent Rising.

[Image: "Ender's Game(s)" by Penny Arcade]

Yeah, we know. The whole "deep sea diver combat" genre peaked with Sega's largely unknown arcade masterpiece The Ocean Hunter, but still, it's rude to look a gift horse in the mouth -- or, rather, to look a free game in the drearily repetitive gameplay. If you haven't done it yet, today is your last chance to download Undertow on the XBLA marketplace for the cost of zilch. Who knows, you may dig it -- and if all it costs is a moment of your time to pick up, isn't it worth checking out? Let us know if free was the right price for the game -- and if it served as an appropriate apology for the recent hiccups in the Xbox Live service.

While we're always pleased to get our scarred, scabbed hands on free stuff we hate to give up one of our precious Xbox Live Arcade Wednesdays to do it. Major Nelson confirmed with our pals at X3F that this Wednesday's featured game would in fact be Undertow (again), but of course they're giving it away for free to say "sowwy" for all those ugly Xbox Live problems. So, no Rez HD or whatnot for you this week ...

For those of you who've already purchased Undertow, we also wanted to direct your attention to this comment by Xbox Live's Major Nelson: "If you have already purchased the game, you can contact support and they will take care of you." We imagine by "take care of you" he means "provide you with a code for a similarly priced game" and not "outfit you with a pair of cement shoes and send you into the drink." But hey, be careful when you call up, okay?

Nothing says "sorry" like a free game, and so, due to previous – and reportedly ongoing – Xbox Live service issues, Microsoft is going to offer Undertow free for download beginning next Wednesday, at 2 am PST, through Sunday. Two weeks ago, Xbox Live GM Marc Whitten posted a letter to Live subscribers apologizing for poor performance during the holidays and promising a freebie was on the way. There are currently no plans to offer a substitute game for those who already own Undertow.

Although the hubbub may be about the new, downloadable Halo 3 maps socking it to you next month, Microsoft also used today's announcement to remind us that we'll finally be seeing Undertow on the Xbox Live Arcade this week. As you can see from the above trailer, it's basically BioShock meets Aquaman meets shooting things. ... Or something.

But this XBLA release got our old friend Stephen Totilo wondering: How do publishers make the most of their 50 XBLA megabytes? He got the answer to his question recently, via a pie chart from developer Chair Entertainment. If you're part of the tiny subset of the human race curious about this sort of thing (yes, that includes us), you can check out the breakdown right here.

Aquatic shooter Undertow goes 20,000 leagues under the sea beginning Nov. 21 on Xbox Live arcade. The fifteen-level campaign with co-op will also have multiplayer modes supporting up to sixteen people. A basic gameplay trailer can be found above and a more elaborate trailer can be found after the break. We already feel bad for some of the smaller games coming out during this jam packed holiday season, but we feel even worse for the XBLA titles screaming for attention in all the fracas.

Despite 2005's disastrous Advent Rising, which was built on Unreal Engine 2.0, Chair Entertainment will continue to use Epic's tech ... for-ev-AR. The indie developer has signed an exclusive deal with Epic to license Unreal Engine for all current and future projects. While the deal extends across the PC, PlayStation 3, and Xbox 360 platforms (no Unreal for Wii, remember?), Undertow, Xbox Live Arcade's submerged shooter, is the studio's only project known to be in development (not that we've been holding our breath for the rest of the canned Advent trilogy).

As previously disclosed, Undertow will feature both a 15-level campaign (with co-op support) and a pair of 16-player multiplayer modes, packed tight like shredded tuna into the old 50MB XBLA standard. Undertow is tentatively scheduled for release this summer.

[Via press release]

After the big budget (and disappointing sales) of Advent Rising, Chair Entertainment has set its sights on the much more manageable Xbox Live Arcade platform with their latest project, Undertow. Like RoboBlitz (oh, and Gears of War), Undertow uses Unreal Engine 3 to bring the pretty. The game will feature a 15-level single player and co-op campaign and two multiplayer modes for up to 16 players, but how does it play? IGN does their best Hollywood pitch, describing it as "Geometry Wars meets Battlefield," 3D graphics with 2D gameplay. Undertow is scheduled to be released on Xbox Live this summer ... if the certification gremlins don't get in the way.