Colonial Marines Co-Developer Files For Bankruptcy Protection

Colonial Marines Co-Developer Files For Bankruptcy Protection

TimeGate Studios logo

TimeGate Studios, co-developer of the disastrous Aliens: Colonial Marines, has filed for Chapter 11 bankruptcy protection.

The year 2013 has not been kind to TimeGate Studios. In years past it was best known to shooter fans as the reasonably competent niche studio behind the Section 8 franchise, but in more recent months it's gained much wider exposure for a much less desirable reason: the Aliens: Colonial Marines fiasco, on which it assisted primary developer Gearbox, although to what extent is, I believe, still a matter of some debate. Regardless of the specifics, TimeGate was forced to lay off an estimated 25 employees shortly thereafter.

And yet things were about to get worse. The big blow fell just a couple weeks ago, when a judge ruled against it in a long-running legal action with publisher SouthPeak Interactive, awarding SouthPeak $7.35 million in damages and all rights to the Section 8 IP. That threw TimeGate's next project, an oddball online shooter called Minimum, and the whole future of the studio into doubt, and today comes the not-at-all-surprising news that a Chapter 11 petition has been filed.

According to Polygon, TimeGate's creditors range from Unreal Engine developer Epic Games to a local pizza joint that's owed $34.80, and of course SouthPeak, whose bill is somewhat higher. The studio's liabilities are reportedly in the $10 million to $50 million range, while it claims $1 to $10 million in assets.

It's possible that the studio could emerge from this mess chastened but intact, but I think the greater likelihood is that this is the beginning of the end. TimeGate has not yet commented on the filing.

Source: Polygon

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As always, I feel bad for the employees, who will ultimately pay for the bad decisions of the leadership.

Poor timegate. The first victim of Gearbox. They have a long way to go before catching up to EA's track record but it doesn't seem to be discouraging them.

Well, shit. That sucks for TimeGate.

I haven't kept up with their problems as of late, but doesn't it seem like a majority of their damages and losses came from the Section 8 ruling? I wonder what their condition would be if they weren't involved with A:CM at all.

$1 to $10 million in assets? If that's how bad these guys are with numbers, I wouldn't even trust them to make a passcode.

Are they including the $35 dollars of pizza as assets? I reckon that with that lawsuit from earlier in the week they probably aren't going to be doing too well even if they somehow settle their existing problems. Maybe Randy Pitchford will cover their lunch bill for them.

Tohuvabohu:
Well, shit. That sucks for TimeGate.

I haven't kept up with their problems as of late, but doesn't it seem like a majority of their damages and losses came from the Section 8 ruling? I wonder what their condition would be if they weren't involved with A:CM at all.

The gist of the Section 8 case is that they took $2 million of the publishers money and didn't spend it on section 8 so there must have been money troubles before 2011 when the last section 8 game came out. I don't think they became involved with A:CM until 2012.

This is pretty sad. Prejudice was a great shooter.

Also Andy, I love how you attributed them with Colonial Marines, as opposed to their good games.

deathbydeath:
This is pretty sad. Prejudice was a great shooter.

Also Andy, I love how you attributed them with Colonial Marines, as opposed to their good games.

He also attributed them to section 8. It is in the article.

Dogstile:
He also attributed them to section 8. It is in the article.

I know, but not in the title. My first impression was "Colonial Marines co-devs? They deserved it!" Then I realized it was Timegate, who are incredibly talented based on their S8 work, and felt bad.

deathbydeath:
This is pretty sad. Prejudice was a great shooter.

Also Andy, I love how you attributed them with Colonial Marines, as opposed to their good games.

The evil that men do lives after them. The good is oft interred with their bones.

In the case of Colonial Marines that's a lot of evil.

direkiller:
In the case of Colonial Marines that's a lot of evil.

Hey, I'm willing to shift a healthy portion of that blame onto Gearbox as well (they worked on Duke Nukem Forever too [and Borderlands]).

albino boo:

Tohuvabohu:
Well, shit. That sucks for TimeGate.

I haven't kept up with their problems as of late, but doesn't it seem like a majority of their damages and losses came from the Section 8 ruling? I wonder what their condition would be if they weren't involved with A:CM at all.

The gist of the Section 8 case is that they took $2 million of the publishers money and didn't spend it on section 8 so there must have been money troubles before 2011 when the last section 8 game came out. I don't think they became involved with A:CM until 2012.

Kind of weird because all they did during that time was more Section 8.

And in my opinion, while the game looks bland as fuck, it has some really good game design, like extremely good (dynamic missions, way bases are captured, the spawn system, etc...).

Kind of sad now since they were doing a game that could really take advantage of their strong points.

direkiller:
The evil that men do lives after them. The good is oft interred with their bones.

The video game industry is a razor and TimeGate Studios walked the line on that silver blade.

deathbydeath:

direkiller:
In the case of Colonial Marines that's a lot of evil.

Hey, I'm willing to shift a healthy portion of that blame onto Gearbox as well (they worked on Duke Nukem Forever too [and Borderlands]).

I'd reckon most of it is Gearbox's fault, but we don't really know.

Denizen:
Poor timegate. The first victim of Gearbox. They have a long way to go before catching up to EA's track record but it doesn't seem to be discouraging them.

As far as I'm concerned, EA at least gives me Dead Space, Mirror's Edge 2 (lets face it, they're working on it, it's a well known fact), and maybe another Warp/Shank-esque indie-ish game. Gearbox on the other hand still hasn't given a new Brothers in Arms to play since... what? Hell's Highway? Or was Bound in Blood the last one? Whichever it was, I think the last release was earliest, maybe 2008. It's 2013, and the last thing associated with it was a Bulletstorm-with-Nazis game that is now going to be it's own IP. Borderlands was never impressive IMO, and these recent dealings and them "saving" Duke Nukem and Aliens as franchises makes me even more worried about Homeworld. Seriously, what do they plan on doing with it? It's a strategy game, they're an FPS developer! Sure maybe Relic pulled out the inverse by being an RTS developer who made the spectacular Warhammer 40k: Space Marine, which is still being played by lots of gamers despite almost no advertising for the game, but they've been a great deal more consistent with quality.

Parakeettheprawn:

Denizen:
Poor timegate. The first victim of Gearbox. They have a long way to go before catching up to EA's track record but it doesn't seem to be discouraging them.

As far as I'm concerned, EA at least gives me Dead Space, Mirror's Edge 2 (lets face it, they're working on it, it's a well known fact), and maybe another Warp/Shank-esque indie-ish game. Gearbox on the other hand still hasn't given a new Brothers in Arms to play since... what? Hell's Highway? Or was Bound in Blood the last one? Whichever it was, I think the last release was earliest, maybe 2008. It's 2013, and the last thing associated with it was a Bulletstorm-with-Nazis game that is now going to be it's own IP. Borderlands was never impressive IMO, and these recent dealings and them "saving" Duke Nukem and Aliens as franchises makes me even more worried about Homeworld. Seriously, what do they plan on doing with it? It's a strategy game, they're an FPS developer! Sure maybe Relic pulled out the inverse by being an RTS developer who made the spectacular Warhammer 40k: Space Marine, which is still being played by lots of gamers despite almost no advertising for the game, but they've been a great deal more consistent with quality.

you mean dawn of war right? space marine is the 3rd person shooter game
O.T. it's always sad to hear a studio go under even though I never played one of their games

deathbydeath:

Dogstile:
He also attributed them to section 8. It is in the article.

I know, but not in the title. My first impression was "Colonial Marines co-devs? They deserved it!" Then I realized it was Timegate, who are incredibly talented based on their S8 work, and felt bad.

We don't have a lot of space to work with in our titles, so we go with what's most immediately recognizable to the largest possible audience. Unfortunately for TimeGate, right now that's Colonial Marines.

I wrote a paper on bankruptcy last year and boy do these bankruptcy protection make it a joke. It is good idea to file for bankruptcy now because very often that means all your debs simply "disappear" and you dont actually have to pay them. Long Short gone the times when bankruptcy actually meant a bad thing.

DVS BSTrD:
$1 to $10 million in assets? If that's how bad these guys are with numbers, I wouldn't even trust them to make a passcode.

That usually means that the only real assets they have are long term assets (like a building) that hasn't been reevaluated for enough time to consider its value as undetermined. Looks like they really are out of it then. If it goes down to 1 dollar that would mean thats the ONLY thing they have, which is very very grim.

William Dickbringer:
you mean dawn of war right? space marine is the 3rd person shooter game O.T. it's always sad to hear a studio go under even though I never played one of their games

No, I meant Space Marine, because that's my point: Relic was a predominantly RTS developing studio that pulled out one of the most enjoyable shooter/brawler hybrids we've ever seen. But I doubt Gearbox can do the inverse with Homeworld.

Am I clear now?

Parakeettheprawn:

William Dickbringer:
you mean dawn of war right? space marine is the 3rd person shooter game O.T. it's always sad to hear a studio go under even though I never played one of their games

No, I meant Space Marine, because that's my point: Relic was a predominantly RTS developing studio that pulled out one of the most enjoyable shooter/brawler hybrids we've ever seen. But I doubt Gearbox can do the inverse with Homeworld.

Am I clear now?

Ok thought you meant the rts game withdrawn

not paying the pizza joint is just unacceptable. If you can't afford to pay them when you buy pizza from them you really need to rethink your business strategies.

Denizen:
Poor timegate. The first victim of Gearbox. They have a long way to go before catching up to EA's track record but it doesn't seem to be discouraging them.

How are they a victim of Gearbox? The way I see it, their ill-thought-out legal battle with SouthPeak is the main cause of their financial ruin.

I can't remember the exact details of the case, but I do recall thinking the pretenses they were going on were flimsy given what was at stake.

Section 8 was awfully lazy buggy and was not helped by Windows Live. They haven't made any good games I can think of, these things tend to happen.

I remember Timegate did the two Kohan games, they were actually pretty good RTSs, good story, interesting mechanics, pity that was te highlight as that weas ten years ago

 

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