Cryptic Studios was founded to develop the superhero-themed massively multiplayer online game City of Heroes (and its twin game City of Villains). Today, Cryptic announced that it has sold its rights to the MMOG to publisher NCsoft. Prior to the sale, City of Heroes was owned jointly by NCsoft and Cryptic Studios.

City of Heroes has long been a staple game of NCsoft’s North American and European operations, giving players the chance to take on the role of superheroes and supervillains battling in Paragon City while plagued with alien invasions. The success of City of Heroes has given Cryptic the resources to branch out into other games, including the development of Marvel Universe Online.

Cryptic has sold the intellectual and proprietary rights to City of Heroes and City of Villains to NCsoft, and has also licensed the engine on which City of Heroes is built to NCsoft. The relevant Cryptic staff who work on City of Heroes will have the chance to transfer to NCsoft, and NCsoft plans to maintain and support the game at the same level that it has been operating. Because of NCsoft's new City of Heroes staff, NCsoft is opening a new development studio in Mountain View, California.