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Section 8 studio TimeGate files for Chapter 11 bankruptcy

Section 8 studio and Aliens: Colonial Marines co-developer TimeGate has filed for Chapter 11 bankruptcy protection. Polygon reports the Sugar Land, Texas-based studio filed on Wednesday with total liabilities ranging from $10 million to $50 million.

Its top creditors include Epic Games, from which it licensed the Unreal Engine, among other gaming services and developers. TimeGate also owes an "unknown" amount to Section 8 publisher Southpeak Interactive, which Polygon says is likely its most significant liability.

The studio, which was formed in 1998, even owes a local pizzeria $34.80.

It's been a rough few months for TimeGate. Besides working on the roundly panned (sorry, we're still thinking about pizza) Colonial Marines, it also owes $7.35 million to Southpeak for compensatory damages related to Section 8.

TimeGate reportedly laid off about 25 employees in March.

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3 comments

  • CUFCfan616 - May 2, 2013 8:12 p.m.

    the game industry is becoming less and less forgiving of studios these days. Gone are the days when you could put out an average day and make a return, nowadays gamers demand strong games and will let you, and your potential consumer base, know within hours of release if a game hasn't lived up to expectations. Social media meant that Colonial Marines sold far less than it would've without social media around by simple word of mouth. A few thousand people bought it, hated it, let millions know about it, no-one else bought it. It's a harsh fact of life, but hopefully it'll bring out the best in developers
  • Child Of Death - May 2, 2013 6:30 p.m.

    While it is sad that they are losing their jobs, Its probably for the best as I can never look at the words Timegate anymore without remembering the piece of shit excuse of a game Aliens Colonial Marines.
  • alex-roy-bristol - May 2, 2013 5:14 p.m.

    It's honestly sad to see these poor guys and gals lose all of their jobs, even if the game* that they all tag-teamed up to create was painfully generic, I can just tell that they all must have had high aspirations of making it big in the very brutal and very unforgiving gaming industry... :r My heart goes out to those that lost their jobs and livelihood... *I don't count A:CM as a "game" per-say, but, more of a disasterpiece, a mural of shit.

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