38 Studios Potentially In Financial Trouble

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According to WPRI (a Providence, Rhode Island television station) 38 Studios (the company founded by Curt Schilling that released Kingdoms of Amalur: Reckoning) is in trouble. Reportedly, state leaders are meeting with the leadership of 38 Studios as well as the Rhode Island Economic Development Corporation (EDC) that made a $75 million, taxpayer-backed loan to 38 Studios (from which 38 Studios has so far received $50 in payments). Presumably, 38 Studios is in serious financial trouble and Rhode Island officials are working with the company to ensure it continues operating. 38 Studios currently employs 288 workers in Providence and 91 in Baltimore (at Big Huge Games).

UPDATE: 38 Studios delivered a check to cover the $1.125 million interest payment that was overdue to the EDC (after reportedly asking for the check back when it admitted to having "insufficient funds," the check finally cleared). 38 Studios has reportedly had trouble paying employees (and is laying off contractors), but the Governor of Rhode Island announced a release date of 2013 for the company's massively multiplayer online game, and if 38 Studios goes under, Rhode Island would own the company's intellectual property. Largely, this has been an embarrassment to Rhode Island, and will make tax breaks and development incentives harder for other companies to come by.

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This page contains a single entry by Editor published on May 15, 2012 12:14 PM.

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