Indie Game Developer Faces Bankruptcy, Burdened by Over $800,000 in Debt

MidBoss, the studio behind 2064: Read Only Memories and its sequel, Neurodiver, has entered Chapter 7 bankruptcy.

This decision follows a voluntary petition filed in June, revealing that MidBoss has just $2,560 in assets while facing debts totaling $823,272. Among these debts, $138,980 is attributed to four loans, $64,000 is owed to an individual for revenue sharing, and approximately $87,985 is due in royalty shares to around a dozen people. Additionally, there’s $36,099 in credit card debt, $7,000 owed to Chase Bank, and a disputed equity claim to Tom Kaitchuck amounting to $404,538.

The filing also indicates that Matt Conn is owed repayment on a shareholder loan of $70,922 and a royalty share of $13,748. Conn, who is listed as the interim CEO in the filing, co-founded MidBoss in 2013 after the GaymerX event but stepped down in 2018 following allegations of abuse and harassment from former employees.

Cade Petersen briefly took over as interim CEO, while Conn retained a 40% ownership stake in the company. Petersen held the CEO position until 2025, after which Alexander Mehrer took over. Conn mentioned on LinkedIn last year that he was assisting Mehrer with critical restructuring efforts to prepare the studio for its next phase. Mehrer’s profile claims he revitalized the studio, addressing operational risks and reestablishing key contracts before departing in August of the previous year. Since then, Conn appears to have resumed control while still holding his 40% stake.

The Read Only Memories intellectual property and MidBoss’ Gaming in Color documentary are listed as assets, though their value is not specified. The future of Read Only Memories remains uncertain, especially after the sequel, Neurodiver, faced multiple delays over four years and received mixed reviews upon release in 2024. MidBoss also has two titles in development, All AI Must Die and The Artificial Artist, but their current status is unclear.