TimeGate, the studio behind so-so shooter Section 8 and a large part of the pretty poor Aliens: Colonial Marines, has shut down, multiple Kotaku sources have claimed.
According to the sources the studio sent all its staff home early yesterday, and it's believed TimeGate's aim to file bankruptcy was thwarted by publisher SouthPeak Interactive. The publisher questioned the legitimacy of TimeGate's filing and was pushing for bankruptcy to be converted to a Chapter 7 liquidation.
A source told Kotaku that SouthPeak won in arbitration, forcing TimeGate to shut its doors.
TimeGate is yet to offer an official comment.
Source: Kotaku | WSJ