Report: TimeGate Lays Off Entire Staff

According to this Kotaku report citing two unnamed sources with knowledge of the situation, TimeGate Studios has laid off its entire staff. The developer behind Section 8 and the co-developer of Aliens: Colonial Marines sent everyone home early today according to the sources. This news is not altogether unexpected given that the studios filed for bankruptcy last week as it faced a multi-million dollar judgment from publisher SouthPeak Interactive over its handling of the Section 8 franchise.

One source speaking to Kotaku said that the win on appeal of a previous SouthPeak arbitration victory in the Section 8 lawsuit spelled the end of the company.

A few weeks ago a court sided with SouthPeak Interactive, publisher of the original Section 8, which said that it was owed an "unknown" amount related to that game publishing deal. TimeGate tried to appeal a decision that came out of arbitration related to the 2009 lawsuit. That arbitration led to a $7.35 million judgment against the developer and a loss of the Section 8 license. In April, the Court of Appeals reversed a lower court decision that sided with TimeGate related to the Section 8 franchise and the arbitration ruling.

We will have more on this story as it develops. TimeGate is not publicly commenting on this story.

Source: Kotaku



Tweet about this on TwitterShare on FacebookShare on Google+Share on RedditEmail this to someone