A Gods & Heroes State of the Republic post on the Gods and Heroes Website describes Heatwave Interactive's struggle to keep this "underfunded" MMOG in operation, with the game's associate producer saying it "did not perform at launch and has never even come close to paying for the cost of bringing it to market, much less the cost of keeping a team developing it for nine-months," adding: "To be honest, I’ve driven the company to the brink several times in an effort to keep the team together and to keep Gods and Heroes operating" (thanks The RPG Reporter). As a result, the game's development team is moving to other projects, and the dropping of subscription fees continues. Here's a bit:

To be honest, I’ve driven the company to the brink several times in an effort to keep the team together and to keep Gods and Heroes operating. However, at the end of 2011, it was clear that we would either have to let the team go, or find another way to keep them around. So, in order to keep the game alive and have a real chance at getting the free 2 play effort funded, we’ve reassigned the majority of the development team to new projects and made the service free for everyone.

The game will have to remain in this state until we find further funding. I hope my honesty and transparency about what has been going on with G&H communicates our commitment and belief in the project.

The State of the Republic may be weak, but its will is strong.