![The rise and fall of 38 Studios: A tale of video games and bad investments
How a gaming company backed by a modern baseball legend screwed over a state: Federal and Rhode Island state authorities have launched investigations looking into the financial history of now-defunct video game developer 38 Studios, founded by former MLB pitcher Curt Schilling. Despite predominantly positive reviews of its first title, the February-released RPG Kingdoms of Amalur, the company laid off its entire staff on May 24th and later filed for bankruptcy protection. Now hundreds of millions of dollars in debt to the state of Rhode Island, the company has taken an abrupt and as-of-yet unexplained financial nosedive in the past two months. Click on to read a roundup.
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$272 million the amount of money 38 Studios owes to its creditors, the biggest of which being the state of Rhode Island
$22 million the amount in assets the company’s two branches — one in Rhode Island, one in Baltimore — have
In the beginning … Schilling, a huge fan of MMORPGs, founded 38 Studios, originally called Green Monster Games, back in 2006. Schilling retired from baseball in 2009 due to a shoulder injury, and 38 Studios acquired the talented developers at Big Huge Games from THQ that May. EA agreed to publish the studio’s first game, an RPG titled “Project Mercury,” in March of 2010. The company also had a larger MMORPG project, “Project Copernicus,” in the works.
Kingdom come Rhode Island offered 38 Studios a $75 million loan to move their studios from Boston to Providence. ”Project Mercury,” now known as Kingdoms of Amalur: Reckoning, had its first demo at PAC East in March, and 38 Studios’ main offices were moved to Rhode Island by April 2011, promising to bring 450 jobs to the state. Kingdoms was released in February of 2012 to mostly positive reviews. “Project Copernicus,” meanwhile, was still in development.
Revelations 38 Studios failed to make a $1.125 million payment to the state in early May. By May 14th the company was considering filing for bankruptcy protection. By May 18th 38 Studios paid RI back by wiring money and a $100,000 check from an unknown source. The entire staff was abruptly laid off May 24th, after the company failed to make payroll; they filed for Chapter 7 bankruptcy protection June 7th. “Copernicus,” which was rumored for a 2013 release, may never come out. source
» To make matters worse, Schilling lambasted Rhode Island Governor Lincoln Chafee for comments he made publicly on May 14th, worried about 38 Studios finances and trying to keep the game studio “solvent.” Accusing Chafee of having an “agenda,” Schilling claimed his comments scared away private investors that could’ve saved the company. It was later found out his company had OK’d filing for bankruptcy protection by the time Chafee made his “solvent” remarks. Investigators are looking in to the actual reason behind 38 Studio’s financial collapse.
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How a gaming company backed by a modern baseball legend screwed over a state: Federal and Rhode Island state authorities have launched investigations looking into the financial history of now-defunct video game developer 38 Studios, founded by former MLB pitcher Curt Schilling. Despite predominantly positive reviews of its first title, the February-released RPG Kingdoms of Amalur, the company laid off its entire staff on May 24th and later filed for bankruptcy protection. Now hundreds of millions of dollars in debt to the state of Rhode Island, the company has taken an abrupt and as-of-yet unexplained financial nosedive in the past two months. Click on to read a roundup.
![producermatthew:
Now live: Streaming video from WFXT’s helicopter over the eight-alarm Woonsocket, Rhode Island fire. [Watch live]
Holy crap. It looks like the structure’s about to turn into rubble in this. Reports note that one firefighter has been injured and a few nearby buildings were abandoned, but the mill was vacant.](http://25.media.tumblr.com/tumblr_lmg7mxqRc61qz5ew6o1_500.png)
Now live: Streaming video from WFXT’s helicopter over the eight-alarm Woonsocket, Rhode Island fire. [Watch live]
Holy crap. It looks like the structure’s about to turn into rubble in this. Reports note that one firefighter has been injured and a few nearby buildings were abandoned, but the mill was vacant.
![producermatthew:
A six-alarm fire has erupted at a mill in Woonsocket, Rhode Island. “It looks like stuff is falling from the sky,” an eyewitness told ABC affiliate WLNE-TV. [Photo via Twitpic]](http://25.media.tumblr.com/tumblr_lmg4wapUph1qz5ew6o1_500.png)
A six-alarm fire has erupted at a mill in Woonsocket, Rhode Island. “It looks like stuff is falling from the sky,” an eyewitness told ABC affiliate WLNE-TV. [Photo via Twitpic]
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