TimeGate Studios has filed for bankruptcy, revealing millions owed to various creditors.
The developers behind Aliens: Colonial Marines have filed for Chapter 11 bankruptcy, the petition was filed in Texas Southern Bankruptcy Court on May 1st, listing dozens of creditors owed money by the developer...
TimeGate owes between $10 and $50 million in liabilities with listed creditors including Epic Games, Agora Games, DJ2 Entertainment. TimeGate also owes $7.35 million in damages from their SouthPeak Interactive lawsuit as well as the loss of the Section 8 IP.
TimeGate last announced Minimum, a free-to-play PC shooter originally due to be released this year, a project in which Square Enix invested approximately $3 million and also agreed to fund additional amounts after the release of the game. Unfortunately TimeGate Studios were "unable to consummate any transaction to finance the completion of Minimum" as a result of the legal battles with SouthPeak. This may result in Minimum never seeing the light of day.
This is yet another game company to go under this year, being forced to close down their doors. Should developers try to be more careful when administrating their funds? Is this shaping out to be some kind of trend in the gaming industry? Or maybe is just a small part of something bigger? Share your thoughts below!