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Big news from Phoenix today as another nail is pounded into Cheyenne Mountain Entertainment's coffin. Ten Ton Hammer confirmed that CME filed for Chapter 11 bankruptcy on February 12th. What does this mean for those who purchased CME's just-released online-only shooter Stargate Resistance, the devs who just started working at CME last August, and the future of Stargate Worlds? Read on for our take in Loading... CME Insolvent.
are today's top 5 Pulse results:
- href="http://www.tentonhammer.com/eq2">EverQuest II (Down 1)
- Lord of the Rings Online (UP 3
movers in the last seven days:
Siege of Mirkwood (expansion)
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Online (release date)
Trek Online (release date)
Resistance (release date)
2: Sentinel's Fate (expansion)
style="font-weight: bold;">Spring 2010
style="font-weight: bold;">Spring 2011
- href="http://www.tentonhammer.com/swtor">Star Wars:
Martuk, our dedicated newshound, spent the better part of yesterday evening knifing his eyeballs with a pile of legal documents to confirm that the rumors are true: Cheyenne Mountain Entertainment is insolvent. In a roundabout way, we've confirmed that the company filed for Chapter 11 on February 12th, days before the release of Stargate Resistance, CME's online-only 3rd person shooter set in the popular sci-fi universe.
Whatever your opinion of CME and the future of Stargate Worlds, this news is both good and bad. I'm no bankruptcy expert, but I spoke with a business lawyer friend this morning and learned a few things about Chapter 11.
First, Chapter 11 is the most flexible of your bankruptcy options - it's a reorganization of debt rather than waving the white flag of liquidation. In other words, the debtor (CME, in this case) usually retains their assets, but must work to the benefit of its creditors under the direction of the court. Famous Chapter 11 bankruptcies include names like Lehman Brothers, Washington Mutual, General Motors, Chrysler, and Delta Air Lines. So, as at least some of those names will tell you, CME is by no means finished, especially since it's a privately held concern and not open to the vicissitudes of the stock exchange. That said, look for a game developer that went through Chapter 11 and emerged victorious and you will find none. Delta can cut back on flights, GM can make better cars, but it takes either serious money or incredible ideas to make money in games development, and failed devcos seldom have access to either.
More importantly, however, is that Stargate Resistance players won't see their game servers disappear anytime soon, at least for the next four months (120 days - which, pending divine intervention, is the minimum amount of time something like this can take). That's especially true since SR is CME's largest (only?) revenue stream at the moment.
Given the rocks and hard places that CME has slithered out from under before, there's a chance that the company could survive with the Stargate IP, if nothing else. To me, that's the worst case scenario for Stargate Worlds fans, since CME would have the license but a very slim chance to raising the funding necessary to make the game. But if the court deems management ineffective or dishonest (which seems likely, given CME's rocky history including allegations that employees went unpaid for more than a hundred days in late 2008), they'll appoint a trustee to handle CME's side of the process.
If that happens, it's hard to tell how this will shake out. With the cold reception of Stargate Resistance, CME is going to have a tough time convincing anyone their next title will cover what they owe. And, as in real life, if you can't prove you can pay your debts given time, you'll have to give up the McMansion. The Stargate license is by far the juiciest asset that CME has, meaning there will be enormous pressure to either sell it off to the highest bidder or relinquish it to a major creditor. If CME refuses to confirm the creditors' plan or create a plan that its creditors will accept, the court will likely convert the case to a Chapter 7 liquidation. And that'll be all she wrote for CME.
Metro Goldwyn Meyer (MGM), the license holder for Stargate, is probably anxious to get the Stargate IP back at this point, before its good name is dragged through any more court filings. There's a good chance that the license reverts to MGM in case of liquidation, too, in which case they might choose to sit on it until a proven, published developer expresses interest. This is not a bad thing for Stargate Worlds - look no further than Star Trek Online for a game that saw the light of day 18 months after its original developer went the way of the mastodon.
Shayalyn's Epic Thread of
From our Tavern of the Ten Ton Hammer forum
What would you think of a Shadowrun MMO?
WARNING: This post was necroed from its mid-2007 slumber, but it's open for business again!
has an idea for a new MMOG based on an existing IP. "I know there's a
few people in here familiar with table-top PnP games," he says, "But
for those that aren't, or are not familiar with Shadowrun in
I'll give a brief explanation of what Shadowrun is." He tells us a bit
about this cyberpunk pen-and-paper game,
and adds that "a Shadowrun MMO would be a genre-encompassing giant. I
would love to see it done and done right." It seems folks agree with
him. If you're among them, or you'd simply like to speculate about IPs
that would make great MMOGs, join us!
Awesome Quotes from the
"I would love a Shadowrun MMO. I think the table top game is a
lot of fun. That and I would really get into another sci-fi/fantasy
Have you spotted an Epic Thread on our forums? Tell
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our latest Loremaster's Corner to find out.
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To read the latest guides, news, and features you can visit our Stargate Worlds Game Page.