Joystiq

Atari Inc. seeks to generate $22M by auctioning assets in July

Sinan Kubba — Thu, 23 May 2013 06:00:00 EST

Atari Inc., the US branch of French parent company Atari S.A., filed for court approval this week to auction its assets in July. Those assets include the Atari logo, as well as the Test Drive, Rollercoaster Tycoon, Asteroids, and Pong franchises among others.

As Reuters and the Wall Street Journal reports, Atari Inc., which filed for bankruptcy earlier this year in a bid to sell its assets and separate itself from Atari S.A., has failed to secure a "stalking horse" or lead bidder since then. Atari Inc. approached more than 180 parties about purchasing assets, but only 15 came back with preliminary bids. Atari Inc. didn't deem a single bid acceptable to set the minimum price for the division's clearout.

As it is, Atari Inc.'s own listed minimum bids for the July auction total "nearly $22.2 million." They include $15 million for the Atari brand, $3.5 million for the Rollercoaster Tycoon franchise, $1.5 million for Test Drive, and RTS franchise Total Annihilation at just $250,000. Atari Inc. has already secured $5 million through debtor-in-possession financing. While the auction is still pending court approval, Atari Inc aims to hold it between July 16 and July 19.

While the Atari name is synonymous with the arcade's pioneering years, Atari Inc. traces its roots to a company called GT Interactive, founded in 1993. GT Interactive was eventually acquired by French company Infogrames Entertainment, and in 2001 Infogrames seized Atari Corporation and its Atari properties through the purchase of Hasbro Interactive. In 2009, Infrogrames renamed itself as Atari S.A., with what was GT Interactive by then renamed as Atari Inc.

After some forty or so years that have seen the Atari brand transfer across several entities, if things go to plan then in two months time it'll find itself at a new home once more. What the ramifications of that sale would be for Atari S.A., financially and nominally, are unclear.

In a financial statement published on May 15, Atari S.A. said, "Faced with the uncertainties relating to the proceedings that are underway in the US, where the Group's strategic assets and most of its business are located, the outcome of the Chapter 11 proceedings in the US will be decisive for all the stakeholders." The statement also reveals Atari S.A. recently sold the ownership of its Outcast franchise for a "nominal amount," and negotiations are underway at similar prices for its Desperados and Silver franchises.

Atari Inc. seeks to generate $22M by auctioning assets in July originally appeared on Joystiq on Thu, 23 May 2013 06:00:00 EST. Please see our terms for use of feeds.

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Report: Timegate closes its doors

Jessica Conditt — Thu, 09 May 2013 19:00:00 EST

Timegate, the studio behind Section 8 and Aliens: Colonial Marines, laid off its entire staff today, Kotaku reports.

On May 2, Timegate filed for bankruptcy protection, citing a debt of up to $50 million. The filing revealed that Timegate owed large sums to 50 companies, including Epic Games, Agora Games and DJ2 Entertainment. In April, Timegate lost an appeal against publisher SouthPeak Interactive, potentially losing the Section 8 license and adding $7.35 million to its debt. SouthPeak fought for Timegate's closure in arbitration and won, leading to today's layoffs, the report says.

Timegate let go 25 employees in March, citing a rough transition to next-gen consoles and a publishing deal that fell through. The studio's most recent project is Minimum, a free-to-play shooter for PC that was supposed to launch on Steam Early Access on April 16. Minimum is currently not listed anywhere on Steam.

Report: Timegate closes its doors originally appeared on Joystiq on Thu, 09 May 2013 19:00:00 EST. Please see our terms for use of feeds.

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Colonial Marines co-dev TimeGate files for bankruptcy protection

Danny Cowan — Thu, 02 May 2013 18:45:00 EST

Section 8 developer and Aliens: Colonial Marines co-developer TimeGate Studios has filed for bankruptcy protection in the Texas Southern Bankruptcy Court, revealing that it owes its creditors between $10 million and $50 million in debt.

Court documents note that TimeGate seeks protection from creditors while it reexamines its finances, Polygon reports. Currently, the company owes large, unspecified amounts to partners such as Epic Games, Agora Games and DJ2 Entertainment. The petition names nearly 50 creditors in all.

TimeGate recently lost an appeal in its long-running legal battle with publisher SouthPeak Interactive, potentially owing $7.35 million in damages and losing its rights to the Section 8 intellectual property. Aliens: Colonial Marines, which TimeGate developed in partnership with Gearbox Software, is the subject of an ongoing class action lawsuit.

TimeGate's current project, the minimalist free-to-play shooter Minimum, was announced in April.

Colonial Marines co-dev TimeGate files for bankruptcy protection originally appeared on Joystiq on Thu, 02 May 2013 18:45:00 EST. Please see our terms for use of feeds.

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Darksiders, Homeworld, Red Faction and other IPs next on THQ auction

Jordan Mallory — Tue, 26 Feb 2013 20:15:00 EST

THQ has announced that it will be auctioning off the intellectual property rights for a large portion of its back catalogue, including Darksiders, Red Faction and Homeworld. The full list of properties up for sale, broken into six lots and posted in full after the break, also includes games like Destroy All Humans! and numerous licensed products.

Once interested bidders have gone through the proper channels, initial bids must be submitted by April 1, 2013, with final bids due on April 15. Once all bids have been submitted, THQ will talk the situation over with the various entities it owes money to and will then designate a primary and back-up bid for each lot. Once all that has been completed, the sales will be presented to the court for final approval, expected to take place in May.

Continue reading Darksiders, Homeworld, Red Faction and other IPs next on THQ auction

Darksiders, Homeworld, Red Faction and other IPs next on THQ auction originally appeared on Joystiq on Tue, 26 Feb 2013 20:15:00 EST. Please see our terms for use of feeds.

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Atari US secures $2 million in financing, prepares to sell assets

Richard Mitchell — Tue, 05 Feb 2013 21:30:00 EST

After declaring bankruptcy last month, the US branch of Atari has closed $2 million in debtor-in-possession financing. Another $3 million is expected once the credit documents are filed and subsequently approved by the court. The company will use the funds to finance its current operations while "evaluating its strategic options" for restructuring.

Pending court approval, Atari has also hired Perella Weinberg Partners, an independent advisory and asset management firm, to help evaluate said options. Part of that responsibility will be to aid in the sale of Atari's assets, which include everything from Pong to the company's logo. Anyone want to go halfsies on Combat?

Continue reading Atari US secures $2 million in financing, prepares to sell assets

Atari US secures $2 million in financing, prepares to sell assets originally appeared on Joystiq on Tue, 05 Feb 2013 21:30:00 EST. Please see our terms for use of feeds.

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Court approves THQ asset sales

JC Fletcher — Thu, 24 Jan 2013 08:45:00 EST

The U.S. Bankruptcy Court has approved the sale of THQ's assets to Ubisoft, Sega, and other companies, THQ announced this morning. The sales are all expected to close today. THQ totals the proceeds from the sale at $72 million, making a total of $100 million when added to the company's estimate of its remaining assets.

In a statement issued by THQ (sure to be one of the last), CEO Brian Farrell said "While we had hoped that the restructuring process would allow the company to remain intact, I am heartened that the majority of our studios and games will continue under new ownership."

New president Jason Rubin echoed the sentiment. "I was brought in eight months ago to help turn this ship around," Rubin said, "and while I'm disappointed that we could not effect a sale for the entire operating business, I am pleased that the new buyers will be providing jobs to many of our very talented personnel. When we first announced the sale process, I said I would be happy if the company's games and people had a bright future, even if it meant I did not have a job at the end of it. And I still feel that way."

Continue reading Court approves THQ asset sales

Court approves THQ asset sales originally appeared on Joystiq on Thu, 24 Jan 2013 08:45:00 EST. Please see our terms for use of feeds.

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South Park Studios battles THQ over potential sale of The Stick of Truth

Jessica Conditt — Tue, 22 Jan 2013 14:25:00 EST

On January 18, South Park Digital Studios filed a preliminary objection to THQ's proposed sale of South Park: The Stick of Truth. THQ and South Park Studios entered into a Deal Memo, granting THQ use of certain South Park trademarks and copyrights, on June 29, 2011. THQ filed for Chapter 11 bankruptcy on December 19 and is being auctioned off today, January 22, at 3 p.m. EST.

In an objection filed in Delaware bankruptcy court, South Park Studios claims that the Deal Memo does not allow other parties use of the South Park IP, and even if the game does end up at a different company, THQ owes South Park Studios at least $2.275 million. South Park Studios "also reserves the right to exercise its option to acquire from THQ all elements of the games and related products under the Deal Memo."

THQ filed a reply on January 21, requesting that the court overrule the objection and allow the sale to continue, though it says it is working toward a consensual resolution with South Park Studios. THQ argues that the license is exclusive and therefore transferable as THQ sees fit. As for the $2.275 million, THQ is "evaluating the amount that South Park asserts is owing" and plans to work with South Park Studios to resolve the issue.

All bids in the THQ bankruptcy sale were due by 9 a.m. EST today and the auction begins at 3 p.m. Hearing on the sale takes place tomorrow, January 23, at 9:30 a.m., with the closing on January 24. THQ will only sell assets individually if it receives bids of more than $60 million (plus a $10 million note) that Clearlake Capital Group is offering for the entire company. The auction has attracted the attention of EA, Warner Bros., Double Fine and others.

South Park Studios battles THQ over potential sale of The Stick of Truth originally appeared on Joystiq on Tue, 22 Jan 2013 14:25:00 EST. Please see our terms for use of feeds.

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Report: HMV to be saved as restructurer Hilco acquires debt

Sinan Kubba — Tue, 22 Jan 2013 09:30:00 EST

Business restructuring company Hilco is set to acquire HMV after reportedly taking control of the struggling British retailer's debt . According to the Financial Times, people familiar with the situation report Hilco took on the debt today, estimated three months ago to be around $279 million. If the reports are accurate, Hilco, already appointed yesterday as advisors to administrators Deloitte, have effective control of the ailing company.

HMV went into administration last week after failing to secure $483 million in additional financing against debt, leaving the company in need of a buyer, with around 4350 jobs in the balance. HMV's troubles headline a sorry month for British game retail after Play.com announced the closure of its retail arm, and Blockbuster UK also went bust, with 160 of its stores being closed as it too seeks a buyer.

Report: HMV to be saved as restructurer Hilco acquires debt originally appeared on Joystiq on Tue, 22 Jan 2013 09:30:00 EST. Please see our terms for use of feeds.

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Atari US files for bankruptcy, selling iconic logo and assets

Sinan Kubba — Mon, 21 Jan 2013 08:45:00 EST

Atari Inc. filed for chapter 11 (restructuring) bankruptcy this morning, as it aimed to detach itself from Atari SA, its French parent company, and acquire independent business. Atari Inc. said it plans to sell all of its assets in the next 90 to 120 days, including defining franchises such as Pong and Asteroids, and even its iconic logo. The company has already secured, pending approval, $5.25 million in debtor-in-possession investment from funds managed by investment advisory Tenor Capital Management.

While Atari boasts a 40 year history, and is tied closely to the pioneering years of the arcade, its name has meant a number of different things across that time thanks to several changes of hands.

The US-based company now called Atari. Inc was GT Interactive when it was founded in 1993. GT Interactive then became Infogrames Inc. in 1999 after French company Infogrames Entertainment acquired controlling interest in it. In 2001, Infogrames Entertainment bought Hasbro Interactive, who had acquired Atari Corporation and its Atari properties three years prior. In 2003, Infogrames Inc. became Atari Inc, now with license to use the Atari name and logo, and in 2008 Infogrames Entertainment completely acquired the company. Then, just to confuse everything that one step further, Infogrames Entertainment renamed itself as Atari, SA in 2009.

Continue reading Atari US files for bankruptcy, selling iconic logo and assets

Atari US files for bankruptcy, selling iconic logo and assets originally appeared on Joystiq on Mon, 21 Jan 2013 08:45:00 EST. Please see our terms for use of feeds.

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HMV entering administration [update]

Alexander Sliwinski — Mon, 14 Jan 2013 17:15:00 EST

Update: HMV confirmed it's filing notice to appoint Deloitte as administrators to the company. As the BBC reports, HMV is suspending trading on the London Stock Exchange from Tuesday, January 15. HMV's 239 stores across the UK and Republic of Ireland are to remain open while Deloitte seeks a purchaser. If a new buyer isn't found, around 4350 people will lose their jobs.

UK retailer HMV will reportedly enter administration (i.e. bankruptcy), after it was unable to obtain £300 million ($483M) in additional financing against debt. The Financial Times and Channel 4 both report the struggling brick and mortar franchise will announce the news tomorrow morning, making it the latest casualty to affect the UK games retail market.

Other prominent game retail victims in recent times include Play.com, which will alter its operation by March. Then there's the saga of GAME, which has also struggled and dealt with bankruptcy.

GameStop removed itself from the UK retail market in early 2012 to become an "e-commerce only operation."

HMV entering administration [update] originally appeared on Joystiq on Mon, 14 Jan 2013 17:15:00 EST. Please see our terms for use of feeds.

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THQ's individual franchises up for grabs, more show up to bid

Alexander Sliwinski — Mon, 07 Jan 2013 15:30:00 EST

THQ's bankruptcy, once expected to be the intimate dinner for two that executives of the bankrupt publisher were hoping for, is turning into a Vegas buffet. Over the weekend, U.S. bankruptcy Judge Mary F. Walrath put the kibosh on THQ's eyebrow-raising quick sale to the private equity firm Clearlake Capital Group, allowing more time for other interested parties to get involved.

The Twitter feed for Distressed Debt Investing has been doing courtroom reporting, noting that the judge has set an auction date of January 22 where THQ assets could be sold individually. It's also been reported that Electronic Arts is now among the bidders. Warner Bros. has also been acknowledged as sniffing around, along with several others.

EA already got a good deal out of THQ in the middle of last year, leveraging THQ's precarious financial situation and taking the UFC license by offering up an "undisclosed cash payment." Warner Bros. has also shown talent in the bargain-basement bankruptcy shopping experience, grabbing Mortal Kombat during Midway's collapse.

Let's not kid ourselves: the fresh shrimp flown in this morning at this THQ buffet is the Saints Row franchise. The latest game has shipped 5 million units and the franchise has sold 11 million units. Both EA and WB's portfolios are missing an established sandbox crime game - and the bonus of having a new Saints Row delivered this year on a platter.

THQ's individual franchises up for grabs, more show up to bid originally appeared on Joystiq on Mon, 07 Jan 2013 15:30:00 EST. Please see our terms for use of feeds.

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Judge denies THQ's plan for a quick sale as Warner Bros., others show interest

Jordan Mallory — Sat, 05 Jan 2013 15:00:00 EST

Earlier this week, the various organizations to which THQ owes giant piles of money filed an objection, claiming that the developer/publisher's bankruptcy plan for a quick sale to Clearlake Capital Group was designed to minimize harm to its staff and leadership, rather than maximize its ability to pay back its debt obligations.

As is the way with these sorts of things, a hearing was held yesterday to get the situation sorted, during which U.S. bankruptcy judge Mary F. Walrath concluded that THQ's plan does not allow enough time for interested parties other than Clearlake Capital Group to get properly involved in the process. Therefore, the plan is rejected.

"I am not convinced that we are under the gun to have a sale process by the 15th," Walrath said during the hearing, according to Business Week. Another hearing has been scheduled for Monday, January 7. "In the meantime I think the parties need to talk."

Meanwhile, five companies are in the process of due diligence, Centerview Partners banker Sam Greene testified during the hearing. Warner Bros. lawyer Howard J. Weg was also in attendance, saying that WB would be interested in further exploring THQ's available assets, should the sales period be extended.

Buying up franchises from bankrupt developers is nothing new for Warner Bros., and considering how well Mortal Kombat turned out, it may not be a terrible development, should it come to pass. Imagine, for instance, a Saints Row game developed by RockSteady, or a Darksiders fighting game developed by NetherRealm Studios. Worse things have happened.

Judge denies THQ's plan for a quick sale as Warner Bros., others show interest originally appeared on Joystiq on Sat, 05 Jan 2013 15:00:00 EST. Please see our terms for use of feeds.

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Creditors, Trustee object to THQ sale conditions

Jordan Mallory — Thu, 03 Jan 2013 21:30:00 EST

Back when THQ filed for Chapter 11 bankruptcy last month, the plan was for the developer/publisher would be sold to Clearlake Capital Group in one big chunk within 30 days, preventing the need for layoffs and avoiding the need to split THQ's various franchises up and sell them a la carte. While this plan sounds like a best-case scenario for THQ given the circumstances, other parties involved in the process have doubts, and have subsequently filed official objections.

There's a lot of complicated legal stuff going on, but the situation essentially breaks down like this: US Trustee Roberta DeAngelis has filed an objection over the sale's time table, saying that the 30-day window is far too small to give parties other than Clearlake Capital Group a chance to bid and participate in the sale. She also took issue with a stipulation in THQ's plan that awards $2.25 million to Clearlake in the event that a different company wins the bid; that amount is disproportionately large with respect to the cash value of the purchase price, she claims.

A consortium of THQ's creditors have also filed an objection, claiming that THQ's proposed bidding procedures "appear to have been designed specifically to thwart any potential bidders from stepping forward to compete with Clearlake's bid," taking issue with the sale's time table and "requirement that prospective purchasers bid on the Debtors 'as a whole' rather than on a 'piecemeal' or 'title-by-title' basis."

In essence, the creditors feel as though the process has been designed to keep THQ operational, rather than to pay back its debts: "Rather than being designed to maximize the value of the Debtors' estates, the Bidding Procedures, by design or otherwise, render the 'auction process' meaningless and virtually guarantee that Clearlake will be the ultimate buyer, thereby ensuring that the Debtors' management retain their positions within, and operating control over, the Debtors' organization."

A hearing is scheduled for tomorrow, during which we're confident at least two lawyers will make more money than we'll ever see in our entire lives. They'll probably also talk about this stuff.

Creditors, Trustee object to THQ sale conditions originally appeared on Joystiq on Thu, 03 Jan 2013 21:30:00 EST. Please see our terms for use of feeds.

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Unannounced THQ games from Vigil, Turtle Rock, more in bankruptcy filing

Jessica Conditt — Wed, 19 Dec 2012 15:50:00 EST

THQ's filing for chapter 11 bankruptcy includes a rundown of all of its current projects and lists a few unannounced games from Vigil Games, Turtle Rock, Relic Entertainment and Patrice Desilets, who is at THQ Montreal.

Relic Entertainment is developing a project under a working title of "Atlas," set to launch in 2014, as well as Company of Heroes 2, the filing states.

Turtle Rock Studios, previously involved in Left 4 Dead 2 and Counter-Strike Source, is developing a co-op, multiplayer action game called Evolve. THQ filed a trademark for Evolve in March.

THQ Montreal is working on 1666, another trademark THQ filed in March.

Vigil Games, the team behind the Darksiders series, is working on a game called Crawler. No more information about this project is revealed in the filing and this is the first murmur of its existence.

THQ game director Jason Rubin tweets that all current projects are on track for their scheduled release dates, including Company of Heroes 2, Metro Last Light and South Park: The Stick of Truth, while Saint's Row and Homefront follow-ups are still a go.

Unannounced THQ games from Vigil, Turtle Rock, more in bankruptcy filing originally appeared on Joystiq on Wed, 19 Dec 2012 15:50:00 EST. Please see our terms for use of feeds.

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Awesomenauts to launch as planned on PSN tomorrow, XBLA naut known [Update: XBLA now known!]

Jessica Conditt — Mon, 30 Apr 2012 15:00:00 EST

Awesomenauts will launch as scheduled on PSN in North America tomorrow, Sony announced via Twitter today. The future of Awesomenauts was thrown into disarray yesterday when news broke that its publisher, dtp entertainment, had filed for insolvency. Developer Ronimo said it was working with dtp to get Awesomenauts published.

Awesomenauts will be free for PS Plus subscribers, Sony said. It was scheduled to launch on XBLA on May 2, but that release is still unconfirmed. We've contacted Microsoft for clarification.

Update: Ronimo has confirmed to Joystiq that Awesomenauts will launch as scheduled on XBLA, on May 2. Microsoft has yet to respond, but this is heartening news for potential Awesomenauts fans everywhere.

Awesomenauts to launch as planned on PSN tomorrow, XBLA naut known [Update: XBLA now known!] originally appeared on Joystiq on Mon, 30 Apr 2012 15:00:00 EST. Please see our terms for use of feeds.

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Awesomenauts may not launch as planned, publisher files for insolvency

Jessica Conditt — Sun, 29 Apr 2012 14:38:00 EST

The German publisher of Awesomenauts, dtp entertainment, filed for insolvency today, potentially stopping the game's XBLA and PSN launch on May 2. Developer Ronimo Games isn't sure what dtp's financial problems mean for Awesomenauts, but both companies are attempting to work out a resolution that gets the game published, IGN reports.

"Insolvency" is the European equivalent of bankruptcy and dtp now faces liquidating or reorganizing its assets, IGN writes. We've contacted Ronimo for comment about dtp's insolvency and the status of Awesomenauts.

Awesomenauts may not launch as planned, publisher files for insolvency originally appeared on Joystiq on Sun, 29 Apr 2012 14:38:00 EST. Please see our terms for use of feeds.

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Investment company buys Game, halting closures, firings, bankruptcy

Jessica Conditt — Sun, 01 Apr 2012 20:00:00 EST

This has been a quick time coming -- Game, the UK games retailer, slipped into a downward spiral early this year, and since the first public announcement of its money troubles in February, Game has closed almost 300 stores, stopped stocking major titles, cut 40 percent of its workforce and entered "administration," the equivalent of filing for bankruptcy.

The best outcome of these events would be for someone to step in and buy Game outright -- which is exactly what happened. Private investment company OpCapita's Baker Acquisitions Unlimited has purchased Game, bringing it out of administration and saving 3,200 jobs across a remaining 333 stores and administrative positions, Eurogamer reports.

Baker will provide Game with "the capital it needs to trade on a normalised basis" and will re-hire a small number of people fired from the Game head office last week. There are no plans to close more stores in the future, Baker said.

Game may have been bought for £1, after paying off an £85 million debt to Game's lenders, Eurogamer said.

Investment company buys Game, halting closures, firings, bankruptcy originally appeared on Joystiq on Sun, 01 Apr 2012 20:00:00 EST. Please see our terms for use of feeds.

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Fallout Online's future in doubt as Interplay crumbles

Ben Gilbert — Tue, 31 May 2011 14:50:00 EST

Fallout Online and several other Interplay-developed titles may be in serious jeopardy, according to a US Securities and Exchange Commission report filed by Interplay last week. Develop discovered the filing, which spells out dire financial concerns for the immediate future of the company. Multiple times, the report states:

"If we do not receive sufficient financing or income we may (i) liquidate assets, (ii) sell the company (iii) seek protection from our creditors including the filing of voluntary bankruptcy or being the subject of involuntary bankruptcy, and/or (iv) continue operations, but incur material harm to our business, operations or financial conditions. These conditions, combined with our historical operating losses and our deficits in stockholders' equity and working capital, raise substantial doubt about our ability to continue as a going concern."

Similarly worrying, the company's current cash balance is approximately $3,000 (yes, that's just three thousand dollars, seriously), and it's operating with nearly $2.9 million in debt. The filing also illuminates the company's shift from paying its developers upfront for projects to working on a "net revenue sharing model," where devs get a cut of the final sales rather than paid when their work is complete. While that model sounds hugely profitable for third-party devs, and has been sporadically successful in the movie business, it seems to signal something less than wonderful in Interplay's case.

Additionally, the company's credit agreement has ended, which Interplay says "has resulted in a substantial reduction in the cash available to finance our operations." Rather than assure investors that everything will work out, the company again warns of potential negative outcomes, saying instead, "There can be no assurance that we will be able to enter into a new credit agreement or that if we do enter into a new credit agreement, it will be on terms favorable to us."

Currently, Interplay has five known projects, ranging from a lawsuit-entangled Fallout MMO to a sparsely detailed Earthworm Jim sequel. Several WiiWare and DSiWare projects are also in the works, though the fate of all five games could be grim given the wording of the company's SEC filing.

Fallout Online's future in doubt as Interplay crumbles originally appeared on Joystiq on Tue, 31 May 2011 14:50:00 EST. Please see our terms for use of feeds.

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JoWooD recovery plan breaks down, closure appears imminent

James Ransom-Wiley — Thu, 21 Apr 2011 23:00:00 EST

Austrian game publisher JoWooD Entertainment has reached "game over," according to Austrian news site Boerse-Express. Negotiations with potential investors to recapitalize the debt-ridden publisher have fallen apart, signaling that the end is near. In order to pay back creditors, Game Informer notes, JoWooD could now attempt to sell off its game properties (recalling Midway's last gasp).

A companion report on Boerse-Express adds that shares of the company have been suspended from trading and that the JoWooD Distribution Services subsidiary has also filed for bankruptcy. It's as yet unknown what will happen to DreamCatcher, JoWooD's Toronto-based subsidiary in charge of North American publishing operations.

In early January, JoWooD filed for bankruptcy and announced plans to pursue capital reorganization. "The management board assumes that negotiations with creditors and possible investors can be positively conducted and finalized within 90 days," the company said at the time, "and thus continuation of the company can be assured."

JoWooD was founded in 1995. The company is best known for publishing the Gothic series, in addition to the Painkiller and Spellforce games. JoWooD also published Torchlight in European territories. According to Boerse-Express, the company employs about 85 staff. In the first nine months of the current fiscal year, JoWooD reported a net loss of €25 million (about $36 million).

[Pictured: Painkiller: Redemption (2011)]

JoWooD recovery plan breaks down, closure appears imminent originally appeared on Joystiq on Thu, 21 Apr 2011 23:00:00 EST. Please see our terms for use of feeds.

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Judge rules against Hawkins personal bankruptcy, EA founder still owes millions in taxes

Alexander Sliwinski — Mon, 28 Mar 2011 20:30:00 EST

A reading from Forbes on the prophet Trip Hawkins:

And lo, the San Francisco federal judge saw through the abusive tax shelters Hawkins used to hide millions in profits from his Electronic Arts days and declared them bad. Smiting a declaration of personal bankruptcy, the judge believed that Hawkins should give unto the government the estimated $20 million or more in federal and California state taxes he is in arrears to.

The 16-page opinion by US District Judge Jeffrey S. White pointed out that Hawkins "continued to spend money extravagantly with knowledge or his tax liabilities" and that he "planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed."

General rule: Pay your taxes. It's what did in Capone. Better rule: When the government is on your butt about tax evasion, it's best not to play it like Hawkins and purchase a $70,000 car ... especially when it's your fourth automobile in a two-driver household.

[Image credit: AlanCleaver_2000]

Judge rules against Hawkins personal bankruptcy, EA founder still owes millions in taxes originally appeared on Joystiq on Mon, 28 Mar 2011 20:30:00 EST. Please see our terms for use of feeds.

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APB developer Realtime Worlds entering administration

Griffin McElroy — Tue, 17 Aug 2010 12:30:00 EST

Filed under: Weird But True, Opinions, New In Pop Culture

Things weren't looking great for APB and Crackdown developer Realtime Worlds last week, as the company underwent some layoffs in the "Art, Audio, Coding, Design, Production, and QA departments." According to GamesIndustry, things didn't improve over the weekend: Realtime Worlds is reportedly entering administration, a status somewhat similar to a U.S. company's decision to file for Chapter 11 bankruptcy.

The Scottish developer has named the Begbies Traynor Group as its administrator -- a third-party who attempts to rescue an insolvent company while still acting in the interests of its creditors. Much like with bankruptcy, this move isn't exactly a nail in the developer's coffin, but it could mean some radical reorganization is right around the corner.

APB developer Realtime Worlds entering administration originally appeared on Joystiq on Tue, 17 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

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Playlogic asks for mercy from court against creditors

Alexander Sliwinski — Wed, 28 Jul 2010 20:00:00 EST

Filed under: Weird But True, Opinions, New In Pop Culture

Dutch publisher Playlogic (Fairytale Fights, Obscure: The Aftermath) has notified the US Securities and Exchange Commission that it has entered into "surseance van betaling," which is closely equivalent to the States' Chapter 11 bankruptcy. The company claims in the filing that "Tough market conditions, late payments by large customers and the delays in projects have forced the company to seek protection under the Dutch bankruptcy laws."

According to GI.biz, Playlogic is suing distribution partner Koch Media for €1.7 million ($2.2M) in unpaid bills as it continues hemorrhaging money, after recording a $20 million loss in its previous fiscal year. For a company that stated just yesterday that it wasn't bankrupt, it's amazing what a difference a day makes.

Playlogic asks for mercy from court against creditors originally appeared on Joystiq on Wed, 28 Jul 2010 20:00:00 EST. Please see our terms for use of feeds.

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Midway liquidation plan approved by court

Griffin McElroy — Sun, 23 May 2010 22:00:00 EST

The last shreds of the former developer known as Midway will soon be dissolved into the ether, as a Delaware court has agreed to the terms of the company's plan to repay a portion of its debts. Businessweek reports that after liquidating all its assets, Midway will distribute about $25.5 million to unsecured noteholders, which is about 16.5 percent of what those noteholders are owed. Unsecured creditors will get $9.2 million, which is around one-quarter of what Midway owes them.

So, now that all of its assets either belong to Warner Bros. or are being hocked to repay lenders, we think we've probably seen the last of the once great Midway empire. Unless one of you guys feels like giving them like, $600 million. C'mon, there's gotta be at least one obscenely rich, completely obsessed Mortal Kombat fan out there.

[Via Kotaku]

Midway liquidation plan approved by court originally appeared on Joystiq on Sun, 23 May 2010 22:00:00 EST. Please see our terms for use of feeds.

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WSJ: GameCrazy officially shuttered in US alongside Hollywood Video

Ben Gilbert — Mon, 03 May 2010 15:30:00 EST

GameCrazy's parent company Movie Gallery Inc. is said to be shuttering the approximately 250 remaining GC stores across the United States, alongside 2,165 Movie Gallery and Hollywood Video outlets. Roughly 19,000 people are estimated to be out of work due to the closures, according to a Wall Street Journal report, and the company is said to be filing for Chapter 7 bankruptcy.

People "familiar with the matter" told the WSJ that the chain considered "reorganizing around smaller core stores" before filing for bankruptcy, but the idea "never got any traction." It also appears that the 184 or so Canadian outlets will remain unaffected, but we've heard nothing official yet. Reportedly, the US stores will begin liquidation "over the next couple of months" until inventories run dry, mirroring the murmurs we heard this past weekend.

While the reality that GameCrazy is suffering this fate certainly appears likely (our tips box seems to corroborate the information), we should note that Movie Gallery Inc. has yet to issue any formal statement regarding the allegations. Our calls to GameCrazy corporate have similarly gone unanswered. If you are a GameCrazy, Hollywood Video, or Movie Gallery employee with any form of official documentation on this subject, we'd love to hear from you.

[Via GameSpot]

WSJ: GameCrazy officially shuttered in US alongside Hollywood Video originally appeared on Joystiq on Mon, 03 May 2010 15:30:00 EST. Please see our terms for use of feeds.

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Little King's Story, Hotel Dusk developer Cing files for bankruptcy

Griffin McElroy — Sun, 07 Mar 2010 17:30:00 EST

Well, this is about as far from how we wanted to start out the week as humanly possible -- a Japanese news site called Data-Max reports that Cing, developer of precious gems such as Hotel Dusk and Little King's Story, has filed for bankruptcy, suffering liabilities of 256 million yen.

It really sucks when a developer has to take such desperate measures to deal with its economic hardships, but it double-sucks when one of said developer's games -- in this case, Hotel Dusk sequel Last Window -- is still due for an American localization. Here's hoping Cing can recover from what's proven to be one of the most painfully slow sales seasons for the company to date.

[Via NeoGAF]

Little King's Story, Hotel Dusk developer Cing files for bankruptcy originally appeared on Joystiq on Sun, 07 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

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Stargate: Resistance developer files for Chapter 11 bankruptcy

Griffin McElroy — Sat, 20 Feb 2010 15:30:00 EST

Stargate Worlds and Stargate: Resistance developer Cheyenne Mountain Entertainment has suffered the slings and arrows of economic turmoil for months now, leading to a number of unflattering reports about the company's finances. However, it seems the studio is taking steps to get itself back on the right track: A representative for Cheyenne recently announced on its official forums that the developer has filed for Chapter 11 bankruptcy.

In the aforementioned forum post, the representative assured fans of the Stargate games that, should the bankruptcy filing be approved, that the company won't simply shut down while it restructures. He explained, "our entire staff is in-house working on upgrades and expansions for Stargate: Resistance, and we continue to be motivated and excited by the response we've received from our customers." We wish everyone the best of luck with turning the good ship Cheyenne back into more prosperous waters.

Stargate: Resistance developer files for Chapter 11 bankruptcy originally appeared on Joystiq on Sat, 20 Feb 2010 15:30:00 EST. Please see our terms for use of feeds.

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Game Crazy parent files for bankruptcy, 250 stores to remain

Alexander Sliwinski — Wed, 03 Feb 2010 19:20:00 EST

Game Crazy can't catch a break as parent-company Movie Gallery has filed for chapter 11 bankruptcy. When the dust settles, only 250 Game Crazy locations will remain. The company already closed over 200 locations late last year. In total, Movie Gallery plans to immediately liquidate and close 760 stores in its financially fallible trinity of brands: Movie Gallery, Hollywood Video and Game Crazy.

The company hopes to emerge from the "restructuring" with a "new and sustainable business model centered on a smaller base of profitable stores." The only division of the business unaffected by the bankruptcy is the company's Canadian operations. At least that's one good thing, eh?

[Via Industry Gamers]

Game Crazy parent files for bankruptcy, 250 stores to remain originally appeared on Joystiq on Wed, 03 Feb 2010 19:20:00 EST. Please see our terms for use of feeds.

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New Necessary Force artwork is gritty-pretty

Justin McElroy — Mon, 22 Jun 2009 19:15:00 EST

You are by now likely familiar with the story behind Necessary Force, an open-world action game being made by Midway Newcastle, which has until month's end to find a buyer or face closure. We dug a debut trailer unveiled last week, and we're equally into some concept art added to the game's official site.

Could someone please step in here? We know times are tight, but we really want to play this, and Joystiq Publishing has all its liquid capital in N-Gage development (no, we don't want to talk about it).

New Necessary Force artwork is gritty-pretty originally appeared on Joystiq on Mon, 22 Jun 2009 19:15:00 EST. Please see our terms for use of feeds.

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Two Midway studios facing possible closure in two weeks

Griffin McElroy — Tue, 16 Jun 2009 15:10:00 EST

If you've got an extra few million bucks lying around, we can think of a couple of video game development studios that could really use it. According to a recent report from Guardian.uk, Midway's Newcastle and San Diego studios are facing closure if they can't find buyers by the end of June. For those whose extended WoW sessions have left them chronologically unaware, that's just two weeks from today.

The Guardian's article focuses on the Newcastle studio -- creators of the recently released Diesel-fest Wheelman -- which is trying to stave off death by finding investors for its unannounced open-world action game. We're far from financial experts, but perhaps keeping said project under wraps isn't the best way to attract suitors in such a brief timeframe. Just, you know, a suggestion.

[Via CVG]

Two Midway studios facing possible closure in two weeks originally appeared on Joystiq on Tue, 16 Jun 2009 15:10:00 EST. Please see our terms for use of feeds.

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Empire Interactive's catalog sold to Zoo

Randy Nelson — Thu, 07 May 2009 17:15:00 EST

Following the publisher's descent into administration earlier this week, Empire Interactive's games catalog and intellectual property rights have been sold to Zoo Publishing, Edge Online reports. As a result of the purchase, US-based Zoo can re-release titles, port them to other platforms and create new titles based on the fallen Empire's original properties.

Given this news, would it be too much to ask for a Big Mutha Truckers MMO? Or, perhaps, an M-rated Pipe Mania? We ~~can't~~ can wait to see what Zoo does with its "going out of business sale" bargains!

Empire Interactive's catalog sold to Zoo originally appeared on Joystiq on Thu, 07 May 2009 17:15:00 EST. Please see our terms for use of feeds.

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Empire Interactive officially in administration

Justin McElroy — Tue, 05 May 2009 14:15:00 EST

Twenty-year-old UK publisher Empire Interactive has confirmed that the company has entered into administration (which is like bankruptcy, if bankruptcy put vinegar on its french fries and called them chips). Forty-nine members of the staff will be let go while six will stay on to help administrator KPMG with the process.

The company isn't a household name in the states, but you might be familiar with some of the recent titles they've had a hand in, like Pipe Mania, Jackass: The Game and FlatOut.

Empire Interactive officially in administration originally appeared on Joystiq on Tue, 05 May 2009 14:15:00 EST. Please see our terms for use of feeds.

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Judge says Sumner Redstone treated Midway 'like a toy'

Ben Gilbert — Tue, 21 Apr 2009 13:33:00 EST

Embattled Midway is back in court, with creditors asking for the head of majority stockholder (and mystery man) Mark Thomas. And Judge Kevin Gross seems inclined to side with the creditors, as bankruptcy proceedings go forward and he calls out former Midway owner National Amusements, Inc. (and it's owner, Sumner Redstone) for treating Midway "like it was a toy."

As the publisher's set to run out of money by June, various creditors are in court fighting over the company's remaining assets and, in the process, Judge Gross is reviewing the somewhat dubious sale of Midway to the aforementioned Mark Thomas. To help put the court proceedings into perspective, we contacted Joystiq Law of the Game writer (and total lawyer) Mark Methenitis, who said, "The Midway sale circumstances are the type of facts that often make a court suspicious. Even though NAI's business justification of the sale does seemingly make sense, the sale of a company that size with debts that large for a net amount so small is suspicious to say the least."

There's only a few months left until June so we're sure to see the results of this bankruptcy case play out in no time at all. Here's hoping the one profitable team at Midway can save themselves before the whole ship sinks.

Judge says Sumner Redstone treated Midway 'like a toy' originally appeared on Joystiq on Tue, 21 Apr 2009 13:33:00 EST. Please see our terms for use of feeds.

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Sacred 2 developer goes bankrupt

Justin McElroy — Mon, 20 Apr 2009 19:50:00 EST

Though it's finally been dated, dungeon crawler Sacred 2 has been plagued by delays. Today comes a reminder that getting it right often comes with a price. Developer Ascaron Entertainment confirmed to Gamespot that the company has declared bankruptcy in Germany after a four-year development period on the game.

The news isn't all bad: The move isn't expected to effect the game's release and and the company has met with "several well-known interested parties to discuss a positive takeover." Here's hoping the final damage is as minimal as possible.

Sacred 2 developer goes bankrupt originally appeared on Joystiq on Mon, 20 Apr 2009 19:50:00 EST. Please see our terms for use of feeds.

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You too could own Midway's assets for $30 million

Justin McElroy — Wed, 15 Apr 2009 20:01:00 EST

If you're looking to buy a video game company, you could do a lot worse than Midway. Think of it, for just $30 million you could own company assets like the Mortal Kombat franchise ... and ... oh! This Is Vegas! That's sure to ... have Achievement points and Trophies. Plus, you'll be helping a band of Midway employees partake in a no-larger-than $600,000 pool of bonuses, according to Midway's revised key employee incentive plan or "KEIP."

If you'll remember, the last form of this KEIP set aside $3.755 million to 29 of its employees if they managed to sell Wheelman and Mortal Kombat. Clearly, it's still a work in progress.

You too could own Midway's assets for $30 million originally appeared on Joystiq on Wed, 15 Apr 2009 20:01:00 EST. Please see our terms for use of feeds.

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Midway's money almost all the way gone

JC Fletcher — Fri, 10 Apr 2009 09:16:00 EST

A US bankruptcy court document filed by Midway owner Mark Thomas (whoever that is!) reveals some dire information about the publisher that helps us understand how the mysterious Thomas was able to acquire the company for $100,000.

According to GamePolitics' summary of the document, "Midway will run out of cash in late June," having "operated at a loss for most of the last decade. In addition, the publisher "overstated the value of the Mortal Kombat franchise." CitiGroup attempted, and failed, to find a buyer for Midway, which meant that Thomas had little or no competition.

All of this information is just what hasn't been redacted in the document. We assume that the redacted portions deal with the fact that Sinistar is real and that Midway has been exhausting its cash reserves to mine Sinisite in order to make Sinibombs.

Midway's money almost all the way gone originally appeared on Joystiq on Fri, 10 Apr 2009 09:16:00 EST. Please see our terms for use of feeds.

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Feds and creditors decry Midway's 'key employee incentive plan'

Griffin McElroy — Tue, 31 Mar 2009 14:16:00 EST

Like flies to honey, Midway can't seem to stop attracting controversy as it attempts to stay afloat during its "planned" bankruptcy phase. This time around, the besieged developer is coming under fire from its creditors and the government committee overseeing its bankruptcy proceedings for planning to dish out $3.755 million to 29 of its employees as part of a "key employee incentive plan."

According to The Cut Scene, the bonuses were set up to reward the select employees (five of which are supposedly Midway executives) should they manage to sell the Wheelman and Mortal Kombat franchises. The feds and creditors took issue with these goals -- when the "incentive plan" was submitted, Wheelman had already been sold to Ubisoft. The incensed parties also took issue with attaching incentives to the sale of Mortal Kombat -- a duty mandated by Midway's "obligations under the Bankruptcy Code."

There are other troublesome points in the plan, such as the fairly high amount of cash it would dispense -- cash that the owed creditors would like to see in their own coffers. Midway will reportedly file an updated (and likely less lucrative) version of the "incentive plan" before its public bankruptcy hearing tomorrow morning.

Update: The revised "key incentive plan" was submitted by Midway last night and alters the previous plan in a few key ways. Midway CEO Matt Booty has been subtracted from the equation, leaving four out of 28 potential employees receiving bonuses, and of those 28, the bonus will be based on the amount of money various properties are sold at. The sale of the Wheelman property will no longer be considered as part of the bonus requirements and the Mortal Kombat franchise will only count if "all of its assets" are sold along with it. To read more about what has changed, check out The Cut Scene.

Feds and creditors decry Midway's 'key employee incentive plan' originally appeared on Joystiq on Tue, 31 Mar 2009 14:16:00 EST. Please see our terms for use of feeds.

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Midway would like to keep Mortal Kombat, talks happening

Jason Dobson — Wed, 04 Mar 2009 08:35:00 EST

While Midway has offered up the sale of Mortal Kombat in its continued fight for survival, the troubled publisher's confidence in the franchise isn't quite as shaken as may be believed. Company spokesperson Geoff Mogilner recently told MTV Multiplayer that while shedding the visceral brawler "could happen," selling off Mortal Kombat is "not something that we as a company are going for."

Even so, Mogilner admitted that there is "definitely interest" from other publishers regarding Mortal Kombat, and that "conversations" are happening, though he wouldn't talk specifics. Still, the corporate spokesperson did estimate that the Mortal Kombat franchise as a whole is responsible for an impressive $1.5 billion, which given Midway's current financial upheaval would certainly come in handy right about now.

Midway would like to keep Mortal Kombat, talks happening originally appeared on Joystiq on Wed, 04 Mar 2009 08:35:00 EST. Please see our terms for use of feeds.

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[Insert new headline about Midway losing money here]

Justin McElroy — Tue, 03 Mar 2009 11:02:00 EST

[From the Joystiq accounting department: In an effort to conserve funds in these tough times, we've cobbled together this story about Midway losing money from fragments of other stories about Midway losing money, with a minimum of editing and the small bit of news bolded. Thank you for your patience during these trying times.]

As pillars continue to topple all around Midway, the company has begun to search for new ways to [1] plan for survival in its continuing struggle to keep its head above water [2]. But for every small chance at redemption Midway Games finds, there seems to be another piece of bad news hiding around the corner. The latest nugget of news is that [3] budgets estimate that between February 9 and May 4, Midway will spend $12,392,598, an approximately 75% depletion of its reserves.

Midway owner ... relatively unknown Mark Thomas [4] says "Midway is hemorrhaging cash at an alarming rate," though we're sure the words he was really looking for were complicated and terrifying [5]. When things are going south as quickly as they have gone for Midway, you take your victories where you can [6], they have already shipped 1.8 million copies of Mortal Kombat vs. DC Universe! [7]

[Insert new headline about Midway losing money here] originally appeared on Joystiq on Tue, 03 Mar 2009 11:02:00 EST. Please see our terms for use of feeds.

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Report: Midway trying to salvage Ed Boon's promised $1 million bonus

Jason Dobson — Tue, 03 Mar 2009 09:30:00 EST

As pillars continue to topple all around Midway, the company has begun to search for new ways to stay relevant, reaching out to one of the last remaining assets left in the struggling publisher's corner. Despite reportedly offering up company darling Mortal Kombat for sale, The Cut Scene reports that Midway hopes to keep series co-creator Ed Boon around -- at least for a while longer -- by continuing to pay bonuses for his role in Mortal Kombat vs. DC Universe and an unannounced series entry in 2009's fourth quarter.

Midway has apparently asked bankruptcy court for approval to pay the designer some $900,000 for sales of last year's comic book crossover. Another $105,000 is promised for other MK franchise revenue to Boon, whom Midway describes as "critical to maximizing the value of one of the Debtors' primary assets." The report suggests that keeping Boon around makes Mortal Kombat more attractive to potential suitors, assuming that he tags along if a company happens to open up its wallet.

Still, critical or not, paying out bonuses seems like a tall order to fill for an outfit that's up to its eyeballs in debt.

Report: Midway trying to salvage Ed Boon's promised $1 million bonus originally appeared on Joystiq on Tue, 03 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

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Report: Midway looking to sell Mortal Kombat assets

Jason Dobson — Mon, 02 Mar 2009 09:01:00 EST

Midway is reportedly looking to sell off its Mortal Kombat franchise in its continuing struggle to keep its head above water. To put this into perspective, this would be like a family of many children putting the only child who managed to go to college up for adoption on Craigslist. And sure, maybe he only went to community college and dropped out after two years but he nonetheless represents a source of family pride.

According to documents allegedly gathered by netDockets, the company's plan for survival includes the "execution of an asset purchase agreement for the sale of Midway's Mortal Kombat franchise assets." What effect this has on that other Mortal Kombat game already in production is anyone's guess. Other goals include ridding the company of its Diesel-fueled Wheelman property, which was rolled in Ubisoft's garage in mid-February.

The publisher has reportedly set aside $3,755,000 to be split among among 29 of the publisher's "officers, management-level employees and other non-insider key employees" if these milestones are met. That's a hefty sum, though we question how thrilled Midway's creditors (not to mention former employees) will be as execs continue to gut the embattled publisher in the name of filling their own gold-lined pockets.

Update: Geoff Mogilner, Midway head of investor relations, tells Edge, "We're not going out of our way to sell Mortal Kombat." That's not say, Midway wouldn't sell Mortal Kombat ...

Report: Midway looking to sell Mortal Kombat assets originally appeared on Joystiq on Mon, 02 Mar 2009 09:01:00 EST. Please see our terms for use of feeds.

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