Section 8 dev files for bankruptcy protection

TimeGate Studios files for Chapter 11 in Texas Southern Bankruptcy Court following fraud suit.

Section 8 developer TimeGate Studios, which also contributed to Aliens: Colonial Marines, filed for Chapter 11 bankruptcy protection this week in a Texas bankruptcy court.

Polygon obtained court documents that show the developer has a number of creditors and total liabilities ranging from $10 million to $50 million. Those claiming to be owed money include Epic Games, Agora Games, and DJ2 Entertainment, as well as a local pizza shop asking for $34.80.

Also listed as a top creditor in the bankruptcy filing is Southpeak Interactive, which published the original Section 8. The company is owed an "unknown" amount, according to the documents.

A TimeGate Studios representative could not be reached for comment.

TimeGate Studios' bankruptcy filing comes a month after the Sugar Land, Texas developer lost a fraud appeal case against Southpeak Interactive, facing $7.35 million in damages and the loss of the Section 8 license as a result.

The company laid off an unspecified number of people in early March.

The studio's current project is free-to-play stylized PC shooter Minimum. It is unclear how this project will be affected going forward.

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Discussion

85 comments
Ripper_TV
Ripper_TV

And now they won't patch out the GFWL. What a bunch of ***********.

mikedenney
mikedenney

What about all the gamers affected? Section 8 players were lied to, and basically cheated, out of almost every major aspect of online (server-based) gameplay, for well over a year. They really really really suck, for this alone.

Also, they lied to many of their gaming community who questioned their 'site down for maintenance' message posted well over a year ago, on the portal to their forum. When gamer after gamer kept 'wondering out loud' how long a 'site maintenance' could be going on, they got really ugly with them (us--I was one), but, instead of being honest with us, they insulted everybody's intelligence by continuing to lie about every major server (actually, 'corporate') issue that kept them down (multiple lawsuits, etc), until, one day last year, they finally put up a 'screw you guys' message, 'congratulating' their community on 'being right all along', and finally telling us all (actually, making us search out this info for ourselves), that server space was now being hosted by none other than GameSpot here--basically, one huge kiss-off, to their most faithful gamers.

What a bunch of walking, talking anuses--hope they never get to treat any gamers like this again.  I'll be tracking some names learned in the process to ensure I avoid buying their products ever again.

Sav117
Sav117

I have to admit its sad to see small dev companies hit by hard times and money issues, it would stop us from being stuck with the giants that just ruin the industry, but there you have it, life is life.....altho I love the part about the pizza place wanting its money :P

kuda001
kuda001

That's Dominos for you

Tempest790
Tempest790

+1 thumbs up for the pizza shop!

That's some funny stuff though.

Talldude80
Talldude80

as well as a local pizza shop asking for $34.80.  ...... LOL

ultramega9
ultramega9

Good thing too, Section 8 was a piece of shit.

pidow
pidow

Sad, a strong possibility more people out of work.

Mmaxxpali
Mmaxxpali

oh well, the highlight of the news was all about the pizza!


gplayer5
gplayer5

ROFL!!! Gotta love that pizza bill. You know your company is going down the crap shoot when you can even pay for pizza LOL.

laser00
laser00

as well as a local pizza shop asking for $34.80"


I just lost myself there

Ripper_TV
Ripper_TV

Seems like they're as shady AND shoddy as The Great MR. Randy Pitchfor himself!

Local pizza shop asking for $34.80 totally killed it. =)))

FallenOneX
FallenOneX

If anyone can tell us which pizza place they're talking about, that would be awesome.

Umitencho
Umitencho

And yet by the time this is over, the Pizza shop will be still be standing and TimeGateStudio unemployees will be forced to buy frozen microwave pizza with food stamps from Walmart.

duffc25
duffc25

Ha, charge it to the house please! 

91210user
91210user

What? No way, they should of got harassed to pay up debt and everything by the debt collectors for the crap they've created ! What losers! Now that just leave us gamers to stop harassing them, which they cannot do because they created Aliens: Colonial Marines!

hadlee73
hadlee73

"...which also contributed to Aliens: Colonial Marines..." lol Eddie that's just twisting the knife :P

Devil_wings00
Devil_wings00

Too bad section 8 (the second one) was actually a really fun online game but the community died so fast I could never get a decent game going.

TrueGB
TrueGB

You know it's bad when they can't afford to pay the pizza guy.

Oh, bugger. Too late. Well, the game wasn't really all that bad. It just wasn't unique.

lamprey263
lamprey263

I hope this lawsuit encourages Sega to reclaim the costs of the lawsuit by taking Gearbox to court for embezzlement of funds for Colonial Marines, which they used to produce Borderlands, Borderlands 2, all those DLC packs, and Duke Nukem Forever, if you ask me that's the money that should go to Sega since they pretty much bankrolled those projects. And I hope Sega sues Gearbox into the ground, and Randy Pitchford is shamed and nobody in the industry hires him again.

They clearly had no interest in Colonial Marines turning out good, which was evident when they hired TimeGate to finish it, TIMEGATE(!!!), like telling Uwe Boll to finish a movie meant for James Cameron, they've nothing but a decade long history of making nothing but crap games. I hope Sega sues Gearbox so hard when this is over.

MateykoSlam
MateykoSlam

damn i'm late for the pizza joke. but cmon thats the funniest thing ive read on this site!

moleyUK
moleyUK

You know your company has real problems when you can't afford to pay the local pizza shop.

Nintyfan95
Nintyfan95

Guess you can say the employees will have to apply for Section 8 :3 

demondogx
demondogx

A bit of a shame tho, seems to me gearbox is just trying to shove blame of Aliens on them
and they were the creators of the kohan series with was a very enjoyable rts back in time

Thanatos2k
Thanatos2k

Gearbox deserves to be right behind them.

ghettalife
ghettalife

Cost the pizza shop more to file their claim on this suit than they'll get back.. If it was me, I'd just send the cheapskate manager another free pie and bread sticks--after I farted on them first.

PStrife
PStrife

Pizza joints should never have an IOU policy, that is screwed up right their.  Shame on Timegate Studios misleasing local small business.

nurnberg
nurnberg

Not surprising.  The Aliens game was a massive flop.

silvergol
silvergol

pizza shop asking for $34.80."hahahaha^^^^^^^^!. 

Duckynevada
Duckynevada

What scumbags... They dont even pay the pizza guy. Good job timegate you cant make a good game and you dont have any ethics.

arc_salvo
arc_salvo

@TrueGB I can see your point, but in today's crowded market not being exceptionally good and/or unique doesn't seem like it's good enough anymore.

Rush_Gremlin
Rush_Gremlin

@Thanatos2k  there is a lawsuit already moving forward. Gearbox may very well end up following.

Umitencho
Umitencho

@ghettalife Probably make the money back providing services for the court. Lets have pizza while our Lawyers rip them to shreds!

jhcho2
jhcho2

@nurnberg  

If i'm not mistaken, TimeGate only  worked on the multiplayer portion. Aliens CM sucked more than just the multiplayer alone.

vassago_
vassago_

@Duckynevada It's awesome when you're sitting this far back on your fat ass, passing judgement. I worked there for over 14 months, grow up.

Kyere
Kyere

@zenogandia @nurnberg It became one of the worst video games of all time and might set a new precedent in regard to marketing what is the real product vs. marketing what isn't the real product thanks to the recent lawsuit thrown at Gearbox.