Fireforge Games is officially filing for Chapter 7 bankruptcy three days after they have launched the Ghostbusters spin-off game from the reboot film which received mostly negative reviews.
Fortunately, the Ghostbusters game they have made is not the main reason why the company is going bankrupt. Fireforge Games has been trying to pay off a massive heap of debt amounting to at least $12 million.
Their Ghostbusters game was officially rolled out on July 12 and they have just filed for bankruptcy three days later on July 15. Fireforge Games probably took on the project hoping that it would generate more income to help pay off their debt but the negative feedback the film reboot has received certainly did not help the sales of the game either.
Fireforge Games was founded by Tim Campbell who was a former employee at Blizzard, Gameranx has learned. The developer also has two MOBA games that were still being developed in the past half-decade until they have officially filed for bankruptcy.
Ghostbusters was developed by Fireforge for only eight months which is quick considering the other timelines for other games. The quality could be questionable but some players have already expected that it may be as bad as the film reboot that was launched last month.
Popular computer peripheral maker Razer was supposed to be the one to publish one of Fireforge's MOBA games dubbed "Zeus," Kotaku reported. The other game was dubbed Atlas and was funded by Tencent that owns a 37 percent stake in the company.
The interesting thing is that the bankruptcy filing now shows that Fireforge owes $11.3 million to Tencent. They are now also legally battling a lawsuit with a private company in Singapore that is owned by Min-Liang Tan, the CEO of Razer.
Fireforge seems to have a problem with developing and funding their games as the Razer CEO is now suing the developer for using their payment to work on the Atlas MOBA for Tencent. The company has not yet commented on the issue and there seems to be no end in sight.
With Fireforge filing for bankruptcy, the legal proceedings with the lawsuits against them are currently put on hold. It is now known how the company will proceed with their problems in the next few months.