southpeak-games
Latest
Stronghold 3 defends Oct. 25 launch date, unleashes assets
Stronghold 3 is ready to teach the importance of proper castle grouting on October 25. That's the official launch date from Firefly Studios and 7sixty Games for the title, which has seen numerous delays and had its publisher delisted from the stock exchange. We've placed some military gameplay footage above, with several trailers and developer diaries after the break. Have fun storming the castle!%Gallery-136665%
SouthPeak delists itself from the New York Stock Exchange [update]
Update: We got in touch with a SouthPeak representative, who told us that the company was never "properly listed" on the NYSE to begin with. SouthPeak was "an 'over the counter' type stock that was never properly listed and therefore can't be delisted." So SouthPeak shares were traded between two parties via a broker, meaning the company was never officially part of the NYSE. Original post: It's been a rough year for SouthPeak. Not only did the company suffer millions in losses in its latest earnings report, but it also had to settle a nasty SEC dispute. The latest bump in the road for the Two Worlds 2 publisher is a delisting from the New York Stock Exchange. SouthPeak released a statement citing that "given its current financial condition and the current state of the economic environment within the industry in which it operates, the benefits of having publicly registered shares and filing periodic reports under the federal securities laws are outweighed by the associated costs." So, basically, SouthPeak can't afford to be a public company anymore. The publisher's next major title, Stronghold 3, was recently delayed and is currently slated to launch in "late summer." According to some online retailers, that translates to "in October."
SouthPeak settles in SEC violation dispute
Two Worlds publisher SouthPeak Interactive ended up in some hot water with the U.S. Securities and Exchange Commission last November, when the government agency announced it would bring a civil injunction against the publisher's chairman, Terry Phillips. The reason for the SEC suit was SouthPeak's failure to properly document a loan given to the publisher by Phillips in early 2009. Rather than drag out the investigation, SouthPeak decided to settle with the SEC earlier this week on unspecified terms. SouthPeak CEO Melanie Mroz explained in a statement that the publisher cooperated with the SEC since it brought the investigation before them last year. She added, "In the end, however, it made the most sense for the company and Terry to negotiate an acceptable settlement that does not require us to admit any wrong-doing and close this chapter as we constantly strive to improve our processes, systems and personnel to meet our obligations as a public company."
SouthPeak posts $2.1 million quarterly loss, future uncertain
Despite reclaiming rights to the My Baby franchise last year, SouthPeak continued to decline into potential insolvency during the second quarter (ending December 31, 2010) of its current fiscal year. Net revenue for the quarter was just $7.5 million, down $2.6 million from the same period the year before -- not that the company was profitable then, either. Despite revenues being down, however, SouthPeak's total losses for the recent quarter -- $2.1 million -- were actually an improvement of $500K over second quarter losses in the previous fiscal year. (That's one way to put a kind of positive spin on the company's bleak state of affairs.) As businesses tend to do in desperate times, SouthPeak assuaged investor concerns in its report with forward-looking statements that forecast a bright future for the publisher. Though no specific projects are mentioned, apparently "SouthPeak has also invested in key new titles from which the anticipated profits should help improve its financial prospects." Of course, the report also adds a far more grim disclaimer: "While the Company is committed to pursuing options to continue to address its viability as a going concern, there can be no assurance that the Company's efforts will prove successful." Not exactly confidence inspiring, folks.
Two Worlds 2 marked down to $40 at Kmart, buyers get hammered
If you're looking to try out the sure lock for 2011's "Most Improved Game of the Year" award recipient, Two Worlds 2, Kmart's making a pretty compelling case for your dollars. The retailer has the game for $40 this week, which will also net you a download voucher for the powerful "BattleHammer of Kroll."
Two Worlds 2 review: One world of difference
"Uh, hello, Two Worlds 2 is it? Please, come in, have a seat." "Oh, thank you so much, and please, call me Tee Dub, all my friends do. I can't tell you what an honor this is to even be considered for a Joystiq score, especially considering what an unmitigated disaster my predecessor was." "It's our pleasure, Tee Dub. Now, I'm just going to address the elephant in the room here. I'm looking over your resume, and I keep coming back to this line right here: 'I am, in many respects, not a very good game. In fact, some parts of me are actively bad.'" "Uhh, yes, that's correct." "We try to keep an open mind here at Joystiq, and heaven knows we're suckers for fantasy action RPGs. But I have to ask ... if you'll fully admit to being crummy in many regards, what are you doing in my office?" "One word, Mr. McElroy: Heart." %Gallery-89295%
SouthPeak claims creditors used press to 'paint a negative picture' of the company
Throughout 2009 and 2010, SouthPeak's legal struggles made headlines. From the sweeping claims of unpaid work following the buyout of Gamecock Media Group to the lawsuits brought on by various companies that had done business with SouthPeak, a less than favorable image of the Texas-based game publisher had been created. In a recent interview with GamesIndustry.biz, SouthPeak chairman Terry Phillips defended his company, claiming creditors "used the press to try to put pressure on us; to try to squeeze a better deal out of us; to try to paint a negative picture of us." "You read a lot of it and you just think we've had a terrible year on the legal side," Terry Phillips added, "but we've not had one single substantive judgment against us whatsoever this year." He cited a French court's ruling in favor of SouthPeak over developer Nobilis, which granted the publisher "all rights on future [My Baby] games." Needless to say, SouthPeak is hoping for a sunnier 2011, as it expands the availability of Two Worlds 2, continues growing the My Baby family, and works with Nvidia to bring Tegra 2-powered games to Android devices.
Stark SouthPeak Q1 financials due to My Baby issues
SouthPeak's first quarter results saw the shaky publisher report a net loss of $1.2 million, compared to the $687K profit it reported during the same time last year. Revenues during the period were $1.4 million, a steep drop from the $16.7 million reported in the previous fiscal year. The publisher claims sales during the quarter were "largely impacted" by the My Baby mama-drama currently going on in the courts. SouthPeak is hopeful that a summary judgment granting the company the rights to resume production of My Baby: First Steps and "reinstate the contract with Nobilis" for future My Baby sequels will be upheld on December 2. Beyond praying that it gets My Baby back and sequels popping out, SouthPeak also spent time, and the bulk of its marketing costs during the quarter, promoting Two Worlds 2 -- which will arrive in the UK and US in January -- and getting the hype machine rolling for Stronghold 3.
SouthPeak says CDV dispute is resolved, wasn't cheap
SouthPeak Games CEO Melanie Mroz told investors this week that the ongoing legal argument between her company and distributor CDV has been resolved, and while full terms of the agreement weren't released, SouthPeak attributes a solid chunk of its $5.8 million in losses to the legal issues. Mroz says "the litigation costs of $3.2 and 3 million" that the company had to pay "were mainly related to CDV." Next up, the company wants to "put these matters behind us and continue to focus on our business and future growth," but not without My Baby. SouthPeak is still embroiled in the fight over that title with Nobilis and Majesco. Chairman Terry Phillips says that SouthPeak feels the My Baby title "is our series, so we're still hoping that that can happen."
SouthPeak to stop selling 'My Baby' during legal issues
While SouthPeak continues its legal dispute with My Baby developer Nobilis and publisher Majesco over the rights to the franchise and My Baby 3, the publisher will discontinue selling My Baby Girl and My Baby First Steps. SouthPeak Chairman Terry Phillips stated in an investor call today, "We firmly believe we are the rightful holder of the intellectual property to this franchise." He continued that the company is currently in court proceedings to resolve, what he calls, the wrongful termination of its agreements with Nobilis and is seeking damages for the developer soliciting the My Baby 3 rights to Majesco. He concluded that the company plans to "vigorously" defend its position. The My Baby franchise has been a "significant" part of the company's revenue, according to Phillips. So, missing My Baby 3 -- along with the other titles -- from the portfolio isn't helping SouthPeak's already glum financials.
'Get Fit with Mel B' among highlights in shaky SouthPeak financial report
When Get Fit with Mel B is name-dropped no less than three times in your annual fiscal year report as a positive indicator, it tends to raise a red flag. SouthPeak Interactive today shared the financial results of its fiscal 2010 year (July 2009 – June 2010) and did its best to paint an optimistic picture for the current fiscal year. But even fervor over a Spice Girl comeback "this fall" (a firm release date has yet to be locked down) couldn't cover up the bottom line: SouthPeak recorded a net loss of $5.8 million last fiscal year. At least the company has "improved" upon fiscal 2009's $13.3 million loss ... Anybody? Other highlights from fiscal 2010 include an increase in total units sold to 2.6 million from 2.4 million in fiscal 2009; and the release of 29 titles compared to 18 in fiscal 2009. Read that again -- it seems two "highlights" can combine to form a low point: Average unit sales per title fell from 133.33K in fiscal 2009 to 89.66K last fiscal year. "While fiscal 2010 was a challenging year, we made critical improvements to our infrastructure and carefully controlled our costs to better align our operations with our revenue stream," SouthPeak CEO Melanie Mroz said in a conference call today. "Fiscal 2011 will be a continuation of controlled expense and a carefully managed title release schedule. Our focus remains on increasing sales with new titles that address gaming in a way that separates us from our competition."
TopWare says Two Worlds 2 is done, disputes SouthPeak's delay claim
Awwwkward. Two Worlds 2 was recently delayed in North America until January 2011 because, according to regional publisher SouthPeak, it planned to take the extra time for "heavyweight quality assurance," so the game was "absolutely flawless" for launch. TopWare Interactive, a subsidiary of the game's European publisher Zuxxez, apparently didn't appreciate that messaging and called it "factually incorrect." Speaking to Gamespot, TopWare's managing director, James Seaman, said the delay was made because of the "exceptionally crowded" holiday season. The company (which oversees Two Worlds 2 developer Reality Pump) allegedly finished all "production, bug testing and localization" work in mid-September and plans to release the game in a few territories on October 21. The January launch in North America will feature the same content as the European release, except for the expected patch updates. This whole messaging debacle gives us an Alpha Protocol vibe. Hopefully, it'll have a more positive outcome.
Two Worlds 2 takes scenic route, now launching October 5
So, we thought Two Worlds 2 was supposed to launch this week -- and we were not alone in this thinking -- but it turns out the game's release date has been quietly moved. A representative for Southpeak told Joystiq today that Two Worlds 2 is scheduled to make its retail appearance on October 5 in North America. (Although we asked, no new European date was provided.) Guess someone figured out launching the same week as Halo: Reach probably isn't the best move ... right, Cabela?
Southpeak Games bringing Nail'd, Two Worlds 2 and more to PAX
Worried you weren't going to get Nail'd at this year's PAX Prime? Southpeak Games wants to assure you that you absolutely will -- more to the point, you can stop by the publisher's booth to get some hands-on time with upcoming MX/ATV racer Nail'd (you see what we did there?). Southpeak is also bringing Two Worlds 2, Battle Vs. Chess, and previously unheard of motorcycle racer SBK-X for attendees to check out. Also, if you're over 10 years old, you could try your hand at some Nail'd speed trials for a chance to win the 70cc Mini-Motocross Pit Bike pictured above. While it might not put you in the running for "Toughest Motocross Dude Ever," it's a totally adorable little motorcycle. Who could say no to that? A monster, that's who. And you're not a monster, right?
SouthPeak publishing Stronghold 3 in early 2011
Update: SouthPeak has confirmed that Stronghold 3 will be released simultaneously online and at retail. SouthPeak Games and Firefly Studios hope you're ready to build a third, really strong building for ... um ... holding stuff, as the two companies announced this week that they'll be bringing out Stronghold 3 in "the first quarter of 2011." The game is said to feature an "improved building system" and new "dramatic nighttime sieges." The physics engine has also been given a refresh, with castles that "crumble into ruin before your eyes" -- hopefully not yours, of course! Stronghold 3 will get an "initial" digital-only release in early 2011, which SouthPeak says could be bolstered by a retail SKU. "A retail release is definitely not out of the question," the publisher said. "We want to deliver according to demand from the fans." So, what SouthPeak's saying is it depends on whether the game's digital release takes a strong enough hold on consumers' hearts, if you will? Ba-zing! %Gallery-99288%
Nobilis fires back at SouthPeak over My Baby IP, blames lack of payment for Majesco move
Responding to recent legal action between former My Baby franchise publisher SouthPeak Games and new publisher Majesco Entertainment, My Baby developer (and IP owner) Nobilis has placed blame for the move on "uncured breaches from SouthPeak, notably for non-payment." In so many words, it appears that Nobilis -- like other SouthPeak debtors -- is still waiting on unpaid bills from the publisher. Nobilis managing director Arnaud Blacher spoke with IndustryGamers regarding the lawsuit, saying that his company will also pursue litigation with SouthPeak over the issue. Furthermore, he confirmed that "all the contracts signed with SouthPeak in the US or in the UK have been terminated." As with most things legal, this situation is sure to get a lot more complicated long before we hear any sort of resolution. SouthPeak had yet to respond to a request for comment as of publishing.
SouthPeak suing Majesco over My Baby 3
Joystiq has confirmed with SouthPeak Games that the company has taken legal action against Mama game publisher Majesco Entertainment, specifically regarding the right to publish My Baby titles in the United States. The litigation was spurred by an announcement last month that Majesco would be publishing the Nobilis-developed My Baby 3 & Friends, an action SouthPeak claims Majesco wasn't legally allowed to take. For its part, SouthPeak issued this statement on the impending litigation: "We are exceptionally proud of our success in making the My Baby franchise a leader in the North American market; our innovative sales, marketing and PR strategies brought My Baby to a huge audience and built a loyal fan base for future products. SouthPeak continues to hold the rights to subsequent My Baby games and we intend to vigorously protect those rights." Additionally, we've confirmed that, while SouthPeak claims a contractual right to publish "subsequent My Baby games" in the US, Nobilis owns the My Baby IP. So, whose baby is it? That remains to be contested (Majesco and Nobilis reps hadn't responded as of publishing). And while SouthPeak recently acquired a $10 million loan, as well as another $5.5 million injection announced just this week, the company's still running into financial and legal issues left and right. "It's no secret that CDV is currently in dispute with SouthPeak Games along with many other companies, whilst CDV is itself in administration," SouthPeak exec Jonathan Hales told IndustryGamers recently, responding to the seizing of 40,000 units of SouthPeak stock by bailiffs on behalf of CDV. "We have sent High Court Enforcement Officers in last Friday and they took 40,00 units -- two trucks worth of stock -- out of the warehouse that SouthPeak uses. They had until yesterday to apply to court to stop that being sold at auction and as far as I'm aware they didn't make an application. We've also frozen the money from their distributor Centresoft," reps from CDV said. It looks like the custodianship of My Baby is just one of many legal battles SouthPeak may be facing in the coming months.
SouthPeak gets $10 million loan while losing biggest moneymaker
Outside of looming legal battles and down year-over-year revenues, SouthPeak recently received a $10 million "asset-based line of credit" that extends until February 28, 2012, reports IndustryGamers, effectively replacing an $8 million line of credit previously secured. We're not quite sure what debtors will have to take from SouthPeak should the publisher not be able to repay the $10 million, though, as Majesco Entertainment apparently scooped up SP's biggest franchise in mid June, My Baby. For what it's worth, SouthPeak chairman Terry Phillips said of the credit, "Securing this additional credit provides us with greater financial flexibility and presents a clear message to our investors that we are confident of our business prospects and growth opportunities over the near- and long-term." Here's hoping that Two Worlds 2 and Battle vs. Chess are enough to help the company get its feet back on the ground in the coming year.
NinjaTown: Trees of Doom half price for a 'limited time'
Between scaling deadly pines and being adorable, NinjaTown franchise star Wee Ninja somehow found the time to pow-wow with Business Ninja and work out a price drop for NinjaTown: Trees of Doom. The Doodle Jump-like series spinoff game landed on iPhone earlier this month for $1.99, but apparently developer Venan Entertainment decided that it's "not yet satisfied" with sales, despite remaining atop the Top 25 paid app charts for some time now. No official end date is given for the sale, though the game's iTunes App Store listing says it will stay on sale "while featured by Apple." Better get it while the getting's good then, eh? NinjaTown: Trees of Doom (Venan Entertainment, $0.99):
SouthPeak made a molehill of profit last quarter
SouthPeak Interactive bounced back from a quarterly net loss of a couple million dollars, pocketing $192,000 in profit for the third quarter (January–March) of its fiscal year ending June 30 -- time to splurge on Charmin for the executive bathrooms! Despite the profit, net revenues during the quarter were down to $7.5 million, compared to $13.5 million during the Q3 last year. Total revenue for the first nine months of the fiscal year was reported to be $34 million, also down compared to the $39 million during the same period in fiscal 2009. With its legal issues apparently over, hopefully SouthPeak can focus on making its My Baby franchise grow up big and strong. The company also plans to build a better kingdom, announcing that it has acquired the rights to Firefly Studios' Stronghold 3.
