Work on the game was temporarily interrupted by the closure of Sierra's Yosemite Entertainment design studio in Oakhurst, California in mid-February.

Sierra expects the move to effect the game's ship date, but Babylon 5 Art Director Marc Hudgins is optomistic about the status of the project. "The core team is still on board either in-house or on contract, and we are making steady progress. We even managed to jam out a rock solid demo for the 1999 Game Developer's Conference (GDC) in the midst of all the chaos. We've got a killer bunch of dedicated and exceptionally talented people on our crew. We're going to absorb the hit, regroup and get back to work" says Hudgins.

A new version of the Babylon 5: Space Combat Simulator will debut at 1999's Electronic Entertainment Expo (E3) May 12th at the Los Angeles Convention Center.