THE design studio responsible for creating the computer game version of the hit film Rocky has gone bust.

Receivers called time on the development arm of Rage plc, whose Newcastle office designed the boxing game for games consoles and home computers.

Rage had been working on a number of titles such as Team SAS, Lamborghini and the follow-up to the Sylvester Stallone-fronted Rocky game.

A wrangle over intellectual property is believed to have forced the closure of the firm's design studios.

Initially it was thought that the ongoing titles and workplaces could have been sold as a going concern, but problems caused by legal issues have prevented this.

The remaining staff at the company are working on selling the titles and intellectual properties owned or licensed by Rage, leaving the fate of the games themselves, some of which are very near to completion, in an uncertain state.

A spokesman for the receivers appointed by The Royal Bank of Scotland said: "It is obviously extremely disappointing for all concerned that the legal risks could not be overcome sufficiently to achieve the sales of all or parts of the business as going concerns."