Report: Reckoning developer at risk of insolvency
38 Studios is in talks with the Rhode Island state government, and the state governor says the effort is to keep the company "solvent."
38 Studios, the owner of developer Big Huge Games (Kingdoms of Amalur: Reckoning) may be facing financial difficulties, and has turned to the Rhode Island government to stay solvent. State officials have been meeting with the game studio, though specific measures aren't being discussed yet.
"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios," Governor Lincoln Chafee told local TV station NBC 10. "We're working with 38 Studios on different issues. That's all I can report right now."
The company was originally formed in Massachusetts, but Rhode Island offered a $75 million loan guarantee in 2010. This was to bring jobs and tax revenue into the state, but the loan was a contentious topic during the recent election season. When Reckoning was released, studio founder Curt Schilling reassured the state that, "the only way taxpayers lose is if the company failed."
The NPD reports that Reckoning has sold 410,000 copies across all platforms since release.
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replySteve Watts posted a new article, Report: Reckoning developer at risk of insolvency.
38 Studios is in talks with the Rhode Island state government, and the state governor says the effort is to keep the company "solvent."-
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vgchartz has it at around 1 million sold.
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they got 75 million in backing for an MMO that never appeared and a single player game that didn't live up to 4-5 years of expectations.
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"the only way taxpayers lose is if the company failed."
So the only way we lose money is the most likely outcome? Sounds like a solid business venture. Sign me up.-
dude sold them a bill of goods that MMOs will never fail, this was back when WoW was making gangbusters and you could swindle unsuspecting investers into backing your 75 million vision with hopes of MASSIVE returns.
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Rhode Island also had a disproportionately higher unemployment rate, so this was an attempt to funnel jobs into Providence. Well, it was an attempt to funnel about 400 gaming industry jobs, in a city that needed thousands of job openings across various industries. It feels almost like Lincoln Chafee was reaching for any kind of huge success story, and since a Fortune 1000 company wasn't knocking, 38 Studios was the next best glamorous thing.
So much hubris along the way, though. I got a chance to see Harmonix in 2005; it looked relatively well-grounded compared to all the hoopla behind 38 Studios moving to Providence.
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doesn't curt schilling own this company
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Yeah, Schilling founded 38 Studios, originally under the name Green Monster Games. He claims the name had nothing to do with Fenway Park.
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WTF, this sucks.
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they were given 75 million in backing.
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all im saying is that 75 million went somewhere..if they are threatening to go under, then they apparently have nothing to show for that money other than huge wallets and a weak single player rpg.
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I agree, I'm wondering the same thing. I know VGcharts is garbage, but they are reporting 1.1 mil units sold: http://www.vgchartz.com/gamedb/?name=amalur&publisher=&platform=&genre=&minSales=0&results=200 Where did all the money go? Did EA suck them dry?
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im afraid this happened to a lot of poor investers over the past five years. promise them huge returns, meanwhile get fat and happy off a set in stone 5 years of great pay, bonuses, cronyism, etc. when the game fails to appear or bombs (ala tabula rasa, and the upcoming elder scrolls mmo) blame it on changing market conditions and wipe your hands of it.
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I guess I should be relieved that Massachusetts didn't counter-offer that insane loan.
This quote from a Boston Globe article caught my eye: http://articles.boston.com/2011-08-14/business/29887231_1_entertainment-software-association-zynga-video-game
But let’s be honest: designing games is sexier than making low-input bias current amplifiers. (Sorry, Analog Devices.)
Yeah, Analog Devices still has tons of industrial customers who buy a well-established product line. 38 Studios released 1 game in the past 2 years. -
I expected more from a company run by a former baseball player, fantasy author and toymaker. Especially after securing a multimillion dollar loan from a state familiar with technology, I was sure they were going to deliver something spectacular.
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