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TimeGate Studios faces bankruptcy

TimeGate Studios faces bankruptcy

Section 8 publisher Southpeak Interactive is listed in the creditors and is expected to be owed the most.

TimeGate Studios, one of the developers behind the already infamous Aliens: Colonial Marines and Section 8 is facing bankruptcy.

According to court documents obtained by Polygon, the Texas-based studio has filed for Chapter 11 bankruptcy protection. The document outlines that TimeGate owes money to almost 50 entities with liabilities between $10m and $50m.

The developer's creditors include Epic Games for the license of the Unreal Engine, transmedia developer DJ2 Entertainment, online game service Agora Games and agency Birthplace Management Group. The court documents even list the $34.80 that the studio owes to its local pizzeria.

Publisher of Section 8, Southpeak Interactive, is also listed in the creditors and is suspected to be the owed the most out of the lot. TimeGate is already facing $7.3m in damages as well as the loss of the Section 8 license due to a fraud lawsuit between itself and the publisher that has been rumbling on since 2009.

TimeGate Studios announced its next project, Minimum, in April. The game will be a minimalist PC shooter with early access to the title available through Steam.

Aliens: Colonial Marines, the title that TimeGate most recently worked on, is also the subject of a class action lawsuit that was filed at the end of April. Although working on the development with Gearbox, TimeGate Studios has escaped being involved in this one with Sega and Gearbox Software being lodged as the defendants.

The class action lawsuit claims that the game was falsely advertised thanks to its misleading trade show demonstrations. It is seeking damages for anyone who bought the game on a pre-order.

5 Comments

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schmidtbag 3rd May 2013, 17:10 Quote
lol that is embarrassing. Personally, I never heard of them.
Eiffie 3rd May 2013, 18:35 Quote
Where is the delete button for removing a post, I see it says edit/delete but once I click it I don't get it. Forum newbie, education time? :D
Eiffie 3rd May 2013, 18:47 Quote
Quote:
Originally Posted by Eiffie
It's always sad to see a small company fall apart but honestly after playing section 8, fear xpacs and then seeing what happened with the recent aliens game is it really that surprising? Section 8 was probably the best they ever made but the game just didn't have enough of a community or content to keep players from moving to another title. The fear xpacs are pretty much trash, I believe the xpacs aren't even canon to the series. Didn't play aliens but I'm sure anyone who has been on the internet knows how that turned out. Again a shame because I was waiting for that game ever since it was announced for ps2 and they had like 3 screenshots up on gamespot. Never played the few other games they made though, perhaps they have a lost gem?
Gradius 3rd May 2013, 22:44 Quote
Never hear them, and I speak as millions!
Maki role 4th May 2013, 01:33 Quote
Quote:
Originally Posted by Article
The court documents even list the $34.80 that the studio owes to its local pizzeria.

Oh dear...
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