Interplay is developing a new MMO version of its Fallout franchise – after 'borrowing' the rights back to its old licence from current franchise-owner Bethesda.

The firm - which has resurfaced this year - also plans to create sequels to some of its most successful games, including Earthworm Jim, Dark Alliance, Descent, and MDK.

The news comes as it announces its earnings for the fiscal year ended December 31st, 2007.

Interplay's net revenues for the period stood at $6 million – an increase of 520 percent year-on-year.

The company reported net income of $5.86 million, compared to net income of $3.08 million in the same period a year before.

The windfall was primarily the result of the $5.75 million in income Interplay took through the sale of the Fallout IP to Bethesda in April last year.

The company has reinitiated its in-house game development studio, and is now hiring game developers to help with its new slate of titles. It launched a new website last month.

Interplay chairman and CEO Herve Caen said:

“2007 set the foundation for our growth strategy. Going forward, we have the vision, unique intellectual property, and low debt and operational costs to help us pursue financing for our various projects.

“Our new Website will streamline our ability to communicate development progress with the public, share brand information with the fans and support our customers.”