SouthPeak Games
| Company type | Public (2008–2013) |
|---|---|
| Industry | Video game publishing |
| Predecessor | SouthPeak Interactive LLC |
| Founded | March 1, 1996 in Cary, North Carolina, United States |
| Founder | SAS Institute (subsidiary) |
| Defunct | July 2013 |
| Fate | Ceased public operations |
| Headquarters | Midlothian , United States |
Area served | Worldwide |
Key people | Melanie Mroz (President and CEO), Terry Phillips (Chairman) |
| Products | Video games, digital distribution (7Sixty) |
| Owner | Terry Phillips Sales, Inc. (from 2000) |
SouthPeak Interactive Corporation, operating under the name SouthPeak Games, was a U.S.-based video game publisher located in Midlothian, Virginia. The company was founded on March 1, 1996, initially as a subsidiary of SAS Institute in Cary, North Carolina. In 2000, it was sold and relocated to Midlothian, later becoming a publicly traded entity in 2008. That same year, SouthPeak acquired Gamecock Media Group, an Austin-based publisher, subsequently shutting it down. In 2011, SouthPeak introduced a digital distribution branch named 7Sixty, based in Grapevine, Texas. The company ended its public operations by July 2013.
Establishment and Ownership Transition (1996–2005)
SouthPeak Games began as SouthPeak Interactive LLC on March 1, 1996, functioning as a subsidiary of SAS Institute with headquarters in Cary, North Carolina. The first president was SAS executive Armistead Sapp. In 1997, SouthPeak secured an exclusive distribution agreement with Red Storm Entertainment that lasted until April 2000. By March 1999, the company obtained rights to develop video games based on the Wild Wild West movie. Advertising for SouthPeak’s titles was managed by Raleigh-based Front Door starting in September 1999 through an $8 million contract.
On October 16, 2000, SAS Institute sold SouthPeak Games to Terry Phillips Sales, Inc., a firm owned by brothers Terry Marshall Phillips and Gregory Robert Phillips and located in Midlothian. The transaction was valued at $4.5 million. Following the sale, Terry Phillips assumed the role of company director. Operations were transferred to Midlothian; staff in Cary were either laid off or retained by SAS Institute. The business was re-registered as SouthPeak Interactive, L.L.C. on October 19, 2000. Melanie Mroz was appointed executive vice-president in August 2005.
Expansion through Acquisitions (2005–2009)
On January 16, 2008, SouthPeak Games completed the acquisition of Global Services Partners Acquisition Corp. (GSPAC), a publicly traded shell company, through a reverse merger valued at . This transaction resulted in the formation of SouthPeak Interactive Corporation with Melanie Mroz as president and CEO and Terry Phillips as chairman. Later that year on June 19, the company secured additional capital via private investment in public equity to support growth initiatives.
SouthPeak purchased Austin’s Gamecock Media Group on October 14, 2008, acquiring upcoming titles including Legendary, Mushroom Men, and Velvet Assassin. Although Gamecock initially operated as a publishing division under SouthPeak, it was soon closed. By August 2009, SouthPeak became embroiled in legal disputes with work-for-hire contractors from Gamecock projects over unpaid royalties—issues that had been identified during the acquisition process.
In its fiscal first quarter report dated November 13, 2009, SouthPeak announced it had obtained exclusive publishing rights for video games based on the TNA Impact! television series following Midway Games’ bankruptcy filing in February that year. However, negotiations between SouthPeak and Total Nonstop Action Wrestling did not result in further development agreements.
Legal Challenges (2009–2011)
In December 2009, TimeGate Studios, creators of Section 8, filed suit against SouthPeak Games alleging breach of contract over $6.2 million in withheld milestone payments and royalties. SouthPeak responded with counterclaims accusing TimeGate of intentionally releasing an inferior product to undermine sales and sought $7.3 million in damages. In November 2011, arbitrator Peter Vogel ruled in favor of SouthPeak ordering TimeGate to pay $7.3 million and transfer the Section 8 license to SouthPeak; however, this decision was overturned by a federal court in March 2012 which upheld TimeGate’s ownership of the license. Ultimately, the U.S. courts of appeals ruled for SouthPeak in April 2013 requiring TimeGate to pay $7.35 million and assign the license.
In November 2009, SouthPeak lost a $3.1 million lawsuit brought by German distributor CDV Software for failing to deliver three games by Christmas 2008. Additional allegations including copyright violations led to further undisclosed settlements ordered in February 2010. During this period Reba McDermott was appointed CFO in April 2010 but departed after nine months. Due to outstanding debts, British distributor Centresoft auctioned off approximately 40,000 units of SouthPeak stock by mid-2010 raising £50,000 by August. The dispute with CDV was declared resolved in October 2010 after charges were dropped; nevertheless unpaid settlements contributed to CDV filing for preliminary insolvency in April that year.
In June 2010 American publisher Majesco Entertainment announced My Baby 3 & Friends, the third installment of the My Baby franchise previously distributed by SouthPeak. Despite French developer Nobilis owning the IP rights, SouthPeak filed suit against Majesco for copyright infringement concerning My Baby. Nobilis cited non-payment of royalties by SouthPeak as motivation for changing publishers. As a consequence of legal damages claimed by Nobilis and others, SouthPeak ceased distribution of all My Baby products in October 2010. A Lyon Commercial Court ruling in January 2011 restored franchise rights to SouthPeak.
In November 2010 the U.S. Securities and Exchange Commission issued cease and desist orders against Phillips, Mroz, and SouthPeak due to inaccurate regulatory filings; the company attributed these issues to inadvertent errors. Following net losses totaling $2.6 million and $2.1 million during the first two quarters of fiscal year 2011 respectively, SouthPeak was delisted from the New York Stock Exchange in September of that year.
7Sixty and its shutdown (2011–2013)
On July 12, 2011, SouthPeak Games established a digital distribution branch named 7Sixty LLC, based in Grapevine, Texas. Under the leadership of vice presidents Leslie House and Jeff Hutchinson, 7Sixty sought to broaden SouthPeak's footprint within the digital marketplace. Its initial release was Stronghold 3, which launched on October 25, 2011. This title marked the final publication from either SouthPeak or 7Sixty before both entities discontinued public operations in July 2013.
Technology
The Video Reality technology made its debut in Temujin: The Capricorn Collection (1997), followed by its application in Dark Side of the Moon: A Sci-Fi Adventure. The last project utilizing this technology, 20,000 Leagues: The Adventure Continues, never reached commercial release.
Published games
| Year | Title | Platform(s) | Genre(s) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 1996 | Virtual Jigsaw: MasterPieces Edition | Microsoft Windows | Puzzle | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1997 | Temüjin | Microsoft Windows | Adventure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Men in Black: The Game | Microsoft Windows | Action | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Monty Python's The Meaning of Life | Microsoft Windows | Adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1998 | Dark Side of the Moon: A Sci-Fi Adventure | Microsoft Windows | Adventure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Robot Club | Microsoft Windows | Edutainment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pinky and the Brain: World Conquest | Microsoft Windows | Puzzle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Looney Tunes: Cosmic Capers – Animated Jigsaws | Microsoft Windows | Puzzle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Junkland Jam | Microsoft Windows | Adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1999 | Boss Rally | Microsoft Windows | Racing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Animaniacs: A Gigantic Adventure | Microsoft Windows | Platformer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Dukes of Hazzard: Racing for Home | Microsoft Windows, PlayStation | Racing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wild Wild West: The Steel Assassin | Microsoft Windows | Action-adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BoomBots | PlayStation | Fighting | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Animaniacs Splat Ball | Microsoft Windows | Shooter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Scooby-Doo! Mystery of the Fun Park Phantom | Microsoft Windows | Adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2000 | Big Mountain 2000 | Nintendo 64 | Snowboarding | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Blaze & Blade: Eternal Quest | Microsoft Windows | Action role-playing game | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Dukes of Hazzard II: Daisy Dukes It Out | PlayStation | Racing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rent-a-Hero | Microsoft Windows | Graphic adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2006 | Juka and the Monophonic Menace | Game Boy Advance | Action-adventure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Scurge: Hive | Game Boy Advance, Nintendo DS | Action-adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State of Emergency 2 | PlayStation 2 | Third-person shooter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2007 | Brave: The Search for Spirit Dancer | Platformer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Monster Madness: Battle for Suburbia | Microsoft Windows, Xbox 360 | Shoot 'em up | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Two Worlds | Microsoft Windows, Xbox 360 | Role-playing game | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pool Party | Wii | Sports | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2008 | Iridium Runners | PlayStation 2 | Racing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ninjatown | Nintendo DS | Strategy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legendary | PlayStation 3 | First-person shooter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| My Baby Boy and My Baby Girl | Nintendo DS | Social simulation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legendary | Microsoft Windows, Xbox 360 | First-person shooter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mushroom Men: Rise of the Fungi | Nintendo DS, Wii | Action-adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dream Pinball 3D | Microsoft Windows, Nintendo DS, Wii | Pinball | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Imperium Romanum | Microsoft Windows | Real-time strategy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hail to the Chimp | PlayStation 3 | Party game | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roogoo | Microsoft Windows, Xbox 360 | Puzzle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B-Boy | PlayStation 2, PlayStation Portable | Rhythm | - | Mister Slime | Nintendo DS | Platformer | - | Monster Madness: Grave Danger | Android, PlayStation 3 | Shoot 'em up | - | rowspan="12" style="text-align:center;"|'2009' | Big Bang Mini | Nintendo DS | - | - | My Baby First Steps | Nintendo DS, Wii | Social simulation | - | X-Blades | Microsoft Windows, PlayStation 3, Xbox 360 | Hack and slash | - | Velvet Assassin | Microsoft Windows, Xbox 360 | Action-adventure, stealth | - | Pirates vs. Ninjas Dodgeball | Wii | Sports | - | Roogoo Attack | Nintendo DS | Puzzle | - | Roogoo Twisted Towers | Wii | Action, Puzzle | - | Brave: A Warrior's Tale | Wii, Xbox 360 | Action-adventure | - | Raven Squad: Operation Hidden Dagger | Microsoft Windows, Xbox 360 | Real-time strategy | - | Section 8 | Microsoft Windows,Xbox360 | First-person shooter | - | TNA Impact!: Cross The Line | Nintendo DS,PlayStation Portable | Sports | - | Trine | Microsoft Windows | Platformer | - | rowspan=8 style="text-align:center;"|'2010' | Fast Food Panic | Nintendo DS,Wii | Simulation |
| Sled Shred | Wii | Sports | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Crime Scene | Nintendo DS | Adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brave: Shaman's Challenge | Nintendo DS | Puzzle | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Horrid Henry: Missions of Mischief | Microsoft Windows,Nintendo DS,Wii | Adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sushi Go Round | Nintendo DS,Wii | Simulation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dementium II | Nintendo DS | First-person shooter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3D Dot Game Heroes | PlayStation 3 | Action-adventure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| rowspan=3 style="text-align:center;"|'2011' | Montessori Music | Nintendo DS | Edutainment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Two Worlds II | Microsoft Windows,PlayStation 3,Xbox360 | Role-playing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stronghold 3 | Microsoft Windows | Real-time strategy |
References
- Articles with short description
- SouthPeak Games
- Over-the-counter traded companies in the United States
- Video game firms founded in 1996
- Video game firms closed in 2013
- Defunct American video game companies
- Video game publishing companies
- Defunct Virginia-based companies
- 1996 establishments in North Carolina
- 2013 closures in North Carolina
- Defunct video game companies of the United States