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Curt Schilling's "38 Studios" in trouble, skips payroll, bounces check to RI

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jbug617

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Jan 8, 2012
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Update:


Just read this as well:

After failing to make a $1.125 million payment to the RIEDC, GoLocalProv has learned that Schilling’s 38 Studios defaulted on May 1. In order to get through an apparent cash-flow shortfall, the company is seeking bridge financing. They have not asked for the state to provide funding, though, according to House Speaker Gordon Fox. The company has, however, looked into using state tax credits to support its finances.

http://www.golocalprov.com/news/new-38-studios-defaulted-on-1.125-million/

I bought the game day 1, but ended up disappointed in certain actions the studio took. From seeming like they didn't care about the tax payers supporting them to the silence about PS3 trophies and the promised patch.


Rhode Island's Economic Development Corporation will take no immediate action to aid the developer, following a closed-door meeting attended by Governor Lincoln Chafee and Schilling, who asked for additional help to save the company. Schilling refused to answer press inquiries and officials wouldn't declare how much money the studio is seeking.

http://www.joystiq.com/2012/05/16/38-studios-schilling-ask-rhode-island-for-more-money-state-off/

Oh wow

If 38 Studios does shutter, beyond Rhode Island taxpayers having to pay off the $75 million bond (plus interest) through 2020, it appears the state will also own the intellectual property of the developer as a parting gift. Reviewing updated documentation released by the Rhode Island Economic Development Corporation (RIEDC) today, it appears 38 Studios put up all present and future IP by the company as collateral.

...

Methenitis continued, "So, the RIEDC could then sell the rights in all of the Kingdoms of Amalur to another developer to offset the millions owed by 38 Studios, and this sale would typically be an auction-style sale to the highest bidder. As a secondary issue, if the sale of all those assets repossessed ends up being more than is owed, the RIEDC will theoretically owe those funds back to 38 Studios."

http://www.joystiq.com/2012/05/16/r...intellectual-property/?a_dgi=aolshare_twitter


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http://www2.turnto10.com/business/2012/may/14/state-38-studios-discussions-ar-1036440/

A couple of people in Rhode Island government met with Schilling to discuss some things. According to the Governor, ""We're working with 38 Studios on different issues. That's all I can report right now". Rhode Island gave 38 Studios a 75 million guaranteed loan so the studio would move from Massachusetts to Rhode Island.
 

Rei no Otaku

Member
Jul 4, 2008
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Cranston, RI
I was kind of annoyed when Amalur was being released and none of the release events were held in RI. Especially considering my tax dollars were paying for the game to be made.
 

NateDrake

Member
Dec 12, 2010
13,717
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I was kind of annoyed when Amalur was being released and none of the release events were held in RI. Especially considering my tax dollars were paying for the game to be made.

Schilling said none of our tax money went toward the game. But I too was upset we didn't have a major launch event in the state.
 

Pachterballs

Banned
Jun 2, 2010
5,357
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so the studio that did amalur is called "38 studios"? It reads like, there's 38 studios in trouble

I gotta say, the guy went on weekend confirmed and pimped it so much that I probably will never want to play it. The hard sell that was happening was.. pretty terrible
 

NoirVisage

Banned
Sep 12, 2011
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Hmmm..i hope they survive, they should scrap the mmo and work on an Amalur sequel that grows off the first and fixes its issues
 

Glix

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Jan 28, 2008
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They were talking on the bombcast about how their MMO was started so long ago that it will not be able to compete in the current F2P space. (they = bombcast guys)

Also, it's so hard to launch an IP, maybe they should have held Amular back for the next gen?
 
Jan 31, 2012
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A shame. The game was very fun. Hopefully everything works out for them in the end. They're a talented group of developers and creators.
 

alphaNoid

Banned
Mar 8, 2010
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This doesn't sound like they're hurting, but that there are some issues with their deal they made with the state of RI.
 

The Kid

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Jan 5, 2011
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This probably doesn't mean much (may just be posturing) but EA described the launch of Amalur as "successful": http://www.marketwatch.com/story/el...q4-fy12-and-fy12-financial-results-2012-05-07. I wonder if this has anything to do with their MMO plans. They may have sunk so much money into the MMO and require so much more funds that the payoff from Amalur was not enough to keep their finances going in a way that allows them to pay ordinary business expenses, such as the loan interest, and continue developing the MMO.
 

cabottemp

Banned
Dec 3, 2009
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Surprised it's not selling that well, I absolutely loved it and bought the Dead Kel dlc -- and plan on buying the new one. Really dig Amalur.
 

Derrick01

Banned
May 9, 2011
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We need Curt to comment on this, though I imagine he probably can't share much.

Amalur was a solid game but sadly that no longer cuts it in this industry. It would have been much better with proper balancing.
 

Glix

Member
Jan 28, 2008
10,359
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955
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This doesn't sound like they're hurting, but that there are some issues with their deal they made with the state of RI.

"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios,"

Yeah, no trouble at all, LOL.
 

legend166

Member
Jan 31, 2007
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I'm enoying Amalur, but geeze, if they're still making an MMO that's probably the dumbest decision ever.
 

Ignis Fatuus

Banned
Feb 17, 2009
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The way I'm reading that article makes it seem like a clueless governor tossed $75 million at them to bring them to the state, and if the studio failed then the taxpayers would lose everything. Because of that, the governor and the state is now so deeply invested in the studio that they can't let it fail. No doubt there will be more state funding incoming. Anything to maintain the appearance of solvency.
 

matmanx1

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Apr 30, 2008
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I hope everything is ok with 38 studios. I love KoA despite it's flaws and am approaching 50 hours played on my current character. I want more games by them and would hate to see anything bad happen to them.
 

BlueSummers

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Nov 26, 2007
1,376
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I really wanted Kingdoms at launch but never got around to getting it and I haven't been following either. Why does the game need a patch so bad?
 

Big-E

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Nov 16, 2006
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Something is wrong if you can sell 400,00 units in a single territory and be in financial trouble.
 

disappeared

Banned
Sep 14, 2006
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I really wanted Kingdoms at launch but never got around to getting it and I haven't been following either. Why does the game need a patch so bad?

There's some quest-related bugs across all platforms, some balancing issues, and a few sound oddities with the PS3 version.


Something is definitely wrong, a professional athlete built up a massive game company without knowing what the fuck he was doing.

That's a bit harsh. Kurt was genuinely passionate about KoA. You can't be pissed at the guy for trying.
 

Barack Lesnar

Banned
Jun 7, 2010
19,179
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This gen has been so "awesome".

The gen has been awesome, best gen ever in terms of games.

Amalur just didn't sell well enough and spent 4 years in development so it probably didn't recoup its costs or maybe just broke even. It's a shame cause it was a good game but it was 1) a new IP, and 2) didn't get all 9s and 10s, so it was an uphill battle.
 

The Kid

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Jan 5, 2011
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Abandon the MMO. It's too volatile a market.

400k is successful guys,especially for a new IP.

I agree. They have an fanbase for the IP and can work on that. I can see them doing what THQ did with their MMO and scrapping the Amalur MMO in favor of a new game. If the MMO was using similar assets to KOA:R, then 38 Studios may be able to recover some of the sunk cost.
 

Barack Lesnar

Banned
Jun 7, 2010
19,179
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Schilling said none of our tax money went toward the game. But I too was upset we didn't have a major launch event in the state.

According to the article and video:
Schilling told NBC 10's Gene Valicenti after the game was released what the taxpayer guarantee meant.

"The only way taxpayers lose is if the company failed," Schilling said.

so this sucks if you're a RI taxpayer!

I really wanted Kingdoms at launch but never got around to getting it and I haven't been following either. Why does the game need a patch so bad?

Balance issues (game was way too easy thanks to blacksmithing, sagecrafting and some skills). This didn't stop me from playing it for like 50 hours or something so it was still a really good game IMO. Didn't have any bugs on my end which was impressive for such a huge game.
 

mjc

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Nov 8, 2007
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38 Studios are the people responsible for the MMO right? And Big Huge handled Reckoning? Kill off the MMO and focus on making games like Reckoning, and they'll be fine.
 
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