TimeGate Studios Files for Bankruptcy, Slides Further into Oblivion
The Aliens: Colonial Marines dev owes money to a lot of people.
Remember TimeGate Studios, the studio that Gearbox Software outsourced work for Aliens: Colonial Marines and hence got stuck up in the controversy for the same? Apparently the Section 8 developer has filed Chapter 11 bankruptcy protection.
Polygon also reported that the company owes cash to no more than 50 different creditors, including Epic Games, Agora and DJ2 Entertainment with liabilities ranging from $10 to $50 million.
But that’s not all. Southpeak Interactive is also in a legal battle with TimeGate over payments licensing issues that has been on-going since 2009. So chalk up another $7.35 million to Southpeak since TimeGate’s appeal was denied two weeks. If it couldn’t get any worse, the developer may also lose the Section 8 IP.
That’s also not including the class action lawsuit that Sega and Gearbox Software are a part of with Aliens: Colonial Marines. It’s definitely dark days for the FPS developer, and it’ll remain to be seen if it can escape unscathed.