After the original version of Hostile Territories was lost due to the web server being hacked into, the development team had a decision to make; either spend several months restoring the database, or start again and reprogram the game from the ground up. The second option would take much longer than the first, but it was decided to be the right thing to do. The main basis for this decision was that the majority of the source code for the original Hostile Territories, was actually still the code created several years earlier for Second Conflict, and as such was not ideally suited for the game.

This was also seen as an opportunity to vastly improve the quality of the game code, making it more secure, more stable and also more expandable. It was also an opportunity for the designers to implement new ideas that would have been very difficult with the old code.

Development of Hostile Territories 2.0 is currently suspended. However much of the code intended for HST 2.0 was actually used to update Second Conflict in 2007.