P2 Entertainment -- formerly known as Perpetual Entertainment -- will no longer be developing the Star Trek Online MMO. Instead, the IP has been passed on to an as-yet-unnamed California-based studio, who will be continuing development while P2 refocuses on the casual games market.

WarCry reports that the unnamed studio will be receiving rights for the Star Trek IP, and the game's content, but will not have access to the code previously developed at P2. This will inevitably slow development of the MMO even further, as the new studio must start from scratch with the title's back-end.

Star Trek Online was the only title currently in development at P2, following news of Gods & Heroes: Rome Rising being placed on "indefinite hold." P2 is also embroiled in a legal battle with former PR firm Kohnke Communications, who are suing for finances owed them after the effective cancellation of Gods & Heroes. Coupled with news of Spacetime's MMO cancellation, we're beginning to think that it's not a good time to be a MMO developer (unless, of course, you're Blizzard).

[Via Massively]

This article was originally published on Joystiq.