Minimum, the minimalist, free-to-play game coming to PC via Steam, was originally going to be published by Square Enix, according to an affidavit filed in developer TimeGate Studios' bankruptcy case. The struggling Japanese publisher pulled out of the project in December as part of its company-wide restructuring.
According to testimony from John T. Young, Jr., the chief restructuring officer in TimeGate's Chapter 11 case, Square Enix invested "approximately $3 million into the development of Minimum and agreed to fund additional amounts after the release of the game."
Square Enix's termination of its publishing agreement with TimeGate was one of several factors that contributed to the Sugar Land, Texas-based developer seeking bankruptcy protection, according to the affidavit. In addition to investing $1 million of its own money to continue developing Minimum, Young testified that TimeGate's revenue from work for hire projects "declined substantially" late last year, seemingly after it completed its work on Aliens: Colonial Marines.
Additionally, after an appeals court reinstated a multi-million dollar arbitration award to SouthPeak Interactive, leaving TimeGate facing $7.35 million in damages, the developer "was unable to consummate any transaction to finance the completion of Minimum." The ruling also "negatively impacted" negotiations with other publishers and distributors, which were ongoing in April.
Without funding and a decrease in contract work, TimeGate faced a "severe liquidity crisis." The affidavit says TimeGate's work for hire business on two unnamed projects generated about $15 million from 2010 through 2012. In the affidavit, TimeGate lists one work for hire job with WB Games Montreal for which it is still owed approximately $725,000. The work may be related to WB Games Montreal's Batman: Arkham Origins, as TimeGate's contribution to the project is scheduled to conclude August 2013, two months before the game's release on Oct. 25.
TimeGate Studios, which has also developed the Section 8 and Kohan series, filed for Chapter 11 bankruptcy protection in Texas Southern Bankruptcy Court on Wednesday, listing liabilities ranging from $10 million to $50 million.
- Nintendo reveals the New Nintendo 3DS
- An awful week to care about video games
- Super Smash Bros. leaked roster seemingly confirmed by Nintendo announcement
- Xenoblade Chronicles is coming to the new 3DS, won't work on older hardware
- How Middle-earth: Shadow of Mordor turned me into a vengeful psychopath
- Can video games teach us to be better people?
- Dark Souls 2: Crown of the Old Iron King - A spoiler-free guide
- Narrative exploration game Gone Home is coming to Wii U
- Here is how to become a genius detective in Sherlock Holmes: Crimes and Punishments
- Valve taken to court by Australian consumer commission over Steam refund policy