Your login information returned multiple users. Please select the user you would like to log in as and re-type in your password.
This has been a strange week for Kingdoms of Amalur: Reckoning, and former Red Sox player Curt Schilling's video game company, developer 38 Studios.
First was news that the company was out of money and was unable to make payroll this week, and, on top of that, was late making a payment of $1.125 million to the state of Rhode Island for a $75 million taxpayer-guaranteed loan they were given by the state in 2010.
Now we're hearing that the company, in the same week, laid off all temp workers and rushed a loan payment check over to the Rhode Island Economic Development Corporation...which was then returned due to insufficient funds. Yes, 38 Studios bounced a check to the state.
Not good news for 38 Studios who are actually in danger being shut down and handing all intellectual properties to the State of Rhode Island if they can't pay, seeing as the taxpayers will then be stuck with the $75 million dollar bill. Oh...and the person who originally approved the loan back in 2010, Keith Stokes, resigned late last night.
And here is where it get's really strange.
Just a few minutes ago 38 Studios released some teaser footage of a Fantasy MMO called 'Project Copernicus' they are working on. Yes, a studio that is in such dire financial straits...a studio that can't make payroll and is inches from having to hand over the Lands of Amalur to the taxpayers of Rhode Island, is now very excited to be telling everyone that they are making a Fantasy MMO. Because, God knows, we don't have enough of those.
Right now I think 38 Studios is just trying to put some good news out there for once this week, and are hoping everyone will stop talking about the financial mess they have found themselves in. Little do they realize that these two stories are really inextricably linked in that the modern Fantasy MMO is a tolling of the deathbell in this supersaturated market.
Basically...this entire situation is a horrible mess.
(Update: Rhode Island Governor Lincoln Chafee, via press conference, said that 38 Studios has just paid $1.1 million it owed the state after missing the initial due date of May 1st.)
[Source: Joystiq]
Comments
11 years, 11 months ago
The headlines "Studio X is working on an MMO" and "Studio X is out of money" go together like peanut butter and jelly. I hope they manage to pull through this. They got the payment in, which is good, but way bigger problems loom. Amalur was cool, and that trailer is nothing short of beautiful. I'd like to see what they can do going forward, but this MMO project may be the death of them.
11 years, 11 months ago
It should also be noted 38 plans to have this MMO ready by 2013. Who knows if they'll even have the money to finish developing it by that point.
11 years, 11 months ago
It looks like 38 Studios is going all in with this new project. Hope the bet pays off as this looks great so far.
11 years, 11 months ago
This is a big thing here in RI. Since I'm from RI, I shouldn't be paying monthly fee to play, it's just fare!
11 years, 11 months ago
I never knew Schilling founded 38 Studios. Holy shit.
11 years, 11 months ago
a fantasy mmo where you get to bounce checks to replentish your HP.
11 years, 11 months ago
Good luck 38.
11 years, 11 months ago
[...] wouldn’t get too excited about these screens, however. As I wrote recently, 38 Studios is going through some hard financial times with some major layoffs happening recently, [...]
11 years, 11 months ago
[...] only an hour before a scheduled press conference is about to take place addressing the dubious loan situation that has been a fairly hot political topic in Rhode [...]