Hound13, the developer of the open-world collectable action RPG Dragonsword, has notified publisher Webzen that it is terminating their publishing contract. The reason is Webzen’s failure to pay the remaining balance of the contract fee.

Hound13 said on its website on Feb. 19 that it informed Webzen on Feb. 13 of its intention to terminate the publishing contract.

According to Hound13, Webzen refused to pay the remaining balance, citing worsening finances at Hound13. The developer strongly rejected that. Hound13 said, “The most important reason our finances have become difficult is that Webzen did not pay the remaining balance,” and cited inadequate promotion and marketing that left sales results short of expectations as another major cause. It claims Webzen’s breach of contract led to the financial deterioration, which in turn resulted in the contract termination.

Hound13 added that Dragonsword faced an environment in which it was difficult to secure attention because it was released around the same time as major competing titles at launch.

The service will be maintained for the time being even after the contract termination. The contract between the two companies stipulates that the service will continue under the existing system for 3 months while transfer or wrap-up procedures are carried out. Hound13 said it plans to pursue a switch to direct operations during that period or continue the service through a new publisher.

Update schedules, however, are expected to be disrupted. Hound13 said, “Many updates were prepared, but smooth updates will be difficult for the time being.”

Hound13 also said publicly that it is currently seeking a new publisher for Dragonsword, a global service partner and investors.