Look, the truth behind the development of the six year project in Aliens: Colonial Marines is a three tiered tail, but Jim Sterling, after collecting information from several of his inside sources, finally feels confident enough to confirm and reassure the beans being spilled. For those unaware, Aliens: Colonial Marines was a disaster. The "demo" shown last year was a vertical slice and completely pre-rendered material, most of which never made it into the final game, and the parts that did weren't even remotely close to as detailed as we saw. There was also no "demo" of the game released publicly and NDA's restricted the truth about how bad the game is from coming out until the day of release, when it was already too late for pre-order folks to cancel.
There are three major players in this whole mess: TimeGate, Gearbox, and Sega. Sega is at fault for a few things, but nothing overly terrible. They announced the game back in 2007 before development began, which in general isn't a good idea, especially with a series that isn't a normal recurring franchise. Sega's board became aware of the mishandling of the funding they gave Gearbox for the game in 2008 and thus canceled the project entirely. At some point, Gearbox came to Sega offering to get serious about the game and somehow Sega decided to refund the project and give it a green light (sounds like this happened roughly early 2009). The main board member who initially became aware of Gearbox spending the first run of money on other non-Sega projects was no longer with Sega at this time.
Oh, it gets worse. Read on for more.