TimeGate Studios Files For Chapter 11 Bankruptcy

Posted Fri May 3, 2013 at 05:30 AM PDT by
Aliens: Colonial Marines

'Aliens: Colonial Marines' and 'Section 8' developer suddenly without funds.

TimeGate Studios, the onetime developer of RTS titles 'Kohan' and 'Axis & Allies' has hit the skids. After working on multiple 'F.E.A.R.' titles, the studio followed up with two 'Section 8' titles and the woefully delivered, Gearbox-helmed 'Aliens: Colonial Marines.' It is those recent projects of dubious quality that may have sunk the company.

What began with a legal battle with 'Section 8' publisher SouthPeak games has turned very dark for TimeGate. Despite initiating the courtroom drama, four years of legal fees have left TimeGate owing SouthPeak $3.75 million.

At the same time, the fallout of 'Aliens: Colonial Marines,' a title which so under delivered it has left egg on the face of SEGA and Gearbox, would seem to have hurt TimeGate's chances of landing new contracts.

Nevertheless, TimeGate recently announced "MINIMUM,' a free-to-play PC only shooter. This announcement of course followed TimeGate's normal mode of operation, laying off the majority of employees.

TimeGate is part of a small stable of companies under the same ownership that include health care company Healix, and yet, TimeGate has now filed for bankruptcy.

From Polygon, "The petition filed by TimeGate lists less than 50 creditors owed money by the game developer and total liabilities ranging from $10 million to $50 million. TimeGate's top creditors include companies like Unreal Engine developer Epic Games, online game service Agora Games and transmedia developer DJ2 Entertainment. Creditors listed in court documents also include a local pizzeria, to whom TimeGate owes $34.80, and video game agency Birthplace Management Group, which is owed $20,539.20."

While it is possible that TimeGate may yet manage to escape its debt and ship another title, the company's soured partnerships and reputation are less easily erased. 'MINIMUM' had been scheduled for an April 16th launch on Steam's Early Access, but that date was missed, and would seem to be on indefinite hold.

Source: Polygon

Author: Brian Hoss

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Tags: Section 8, Aliens: Colonial Marines (3 posts), TimeGate Studios (all tags)