Silicon Knights, Inc. was founded in 1992 in Ontario, Canada, by Denis Dyack. In 1998, they were signed by Nintendo as a second-party developer. They created two games for them and ended the contract in 2004. They partnered with Microsoft Game Studios in 2005 to develop the Too Human trilogy of games. Nintendo still holds stock in the company.
In July 2007, Silicon Knights launched a suit against Epic Games, Inc. for more than $75,000 claiming Epic misrepresented the abilities of their Unreal Engine 3 when selling the license agreement to Silicon Knights. They licensed the engine for the game Too Human, but ended up developing their own engine.
Silicon Knights claimed Epic failed to provide a working game engine, not providing support and releasing a numbed-down version, not living up to the number of on-screen characters and lightning effects, which was not the version Epic used themselves to develop Gears of War, only provided afterwards. The accusations include fraud, negligent misrepresentation, intentional interference with contractual relations, intentional interference with prospective economic advantage, breach of warranty and a violation of North Carolina's unfair and deceptive trade practices act.