Over the last 9 months, JoWooD has openly acknowledged being in breach of contract in a number of areas including many legal and confidentiality breaches. Perception has tried to work with JoWooD to resolve these issues for months but to no avail.

As these newest issues had not been resolved by the August 5th 2005, Perception gave notice that all outstanding issues would need to be resolved by Monday August 8th 2005, or Perception would terminate its contract with JoWooD.

"It's disappointing to hear of this so called termination via the press on the basis of a "get in first" tactic. This further suggests that JoWooD do not understand the terms of the contract.

Perception has begun personal prosecution proceedings against both the CEO, Albert Seidl and the Chairman of the Supervisory Board of JoWooD, Andreas Rudas, for the libelous comments made in their press release and will use all legal remedies available to it for the substantial monies owed to it by JoWooD.

JoWooD CEO Seidl explained the conflict in an interview with an Austrian investment magazine:

- Perception tried several times to push JoWooD out of the contract by accusing them of breach of contract.
- 3 months ago JoWooD was told that everything´s fine with Stargate.
- 2 months ago Perception suddenly and secretly stopped development on Stargate. JoWooD was not informed about this.
- Then Perception announced that the game will be ready Q3/06 at the earliest.
- US publisher Namco refused to show the PS2 version at the E3.
- Reason for the termination of the development contract: The game lacks performance and development is heavily behind schedule.
- Chances to continue the project with Perception: "equal to zero".
- 5 studios applied to take over development so far. This will be evaluated.
- An "execution procedure" against Perception has been filed prophilactically. (I don´t even understand what Seidl wants to say in German. It looks like JoWooD wants to liquidate Perception if they can´t pay back the money.)