[Video Games] Curt Schilling's 38 Studios in serious trouble. (Kingdoms of Amalur)

seclusion · May 17, 2012

News about this has been trickling out for a week or so now. I casually paid attention previously but it's starting to get very serious from what I can see. It's sad because they actually released a good game; it seems like this is starting to become common place for good developers to release good games and still somehow run out of money. Team Bondi released LA Noire a few days short of a year ago, and they're gone. Black Rock studios released Split Second in 2010 and was shut down last year. Believe me, I can go on. The worst part is all of these talented people losing their jobs.

As for 38 Studios; I have played Kingdoms of Amalur a bit and it's pretty good. What was up with the loan from Rhode Island though? Insanity.

Joystiq said:

38 Studios was unable to make payroll this week, but is in the process of making the $1.125 million payment that set off the company's crisis earlier this week. WPRI reports that a spokesperson for the Rhode Island Economic Development Corporation (RIEDC) did confirm that former Red Sox player Curt Schilling's video game company was unable to pay its employees.

A source tells Joystiq that beyond not making payroll, all temps and contractors at 38 Studios were let go this week.

At the same time, Governor Lincoln Chafee's office stated 38 Studios is in the process of making the overdue payment to the state. The head of the RIEDC, Keith Stokes, who approved the $75 million loan to 38 Studios in 2010, resigned late last night.

If 38 Studios does close, Rhode Island taxpayers will have to repay the $75 million bond (plus interest) through 2020, but they'll own the intellectual property of the developer, which would likely be sold at auction.

...

Update 2: Statement from the Office of Governor Lincoln D. Chafee: "A check from 38 Studios was hand-delivered to the Rhode Island Economic Development Corporation at approximately 5 o'clock this evening. However, upon learning from the Chief Financial Officer of 38 Studios that there were insufficient funds to cover the payment, the check was returned. The EDC remains willing to accept readily available funds."
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http://www.joystiq.com/2012/05/17/38-studios-doesnt-make-payroll/

Drexlerfan22 · May 17, 2012

That really sucks. From everything I've heard it's a pretty good game. I was strongly considering buying it, and I still might eventually, but I put it off because two similar games (Skyrim and Dragon's Dogma) have piqued my interest more. Don't know if other people thought the same thing... could be a part of what did them in.

seclusion · May 17, 2012

Drexlerfan22 said: ↑

That really sucks. From everything I've heard it's a pretty good game. I was strongly considering buying it, and I still might eventually, but I put it off because two similar games (Skyrim and Dragon's Dogma) have piqued my interest more. Don't know if other people thought the same thing... could be a part of what did them in.
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Probably. I got KoA for $30 otherwise I likely still wouldn't have it. It's closer to Diablo than Skyrim; the combat is a hell of a lot better that's for sure. They should have released before Skyrim.

I don't know I can't really play single player games like that for 50 and 60 hours. Much less the reported 80 hours for KoA. I think lack of multiplayer definitely hurt as well. Torchlight is successful because it's a good game and it's cheap.

Xerobull · May 17, 2012

Too many chiefs.

Raven · May 17, 2012

I enjoyed the demo, but I never bought it. Ultimately, there wasn't anything to distinguish it, and I put it on the back burner. I like the graphics, though. I thought they were well done and stylish.

mrm32 · May 17, 2012

Wait Team Bondi is gone?! So no LA Noire sequel?

chow_yun_fat · May 17, 2012

Curt Schilling and co. pulled a fast one on the state of Rhode Island. No way it cost $75 million to form that company and develop one game. Since it's a corp, they get away scott freeee.

Played the demo...and the game was sub par. Controls def need some work. It's not as bad as Ninja Theory games, but not as fluid as Dragons Dogma or Skyrim.

seclusion · May 17, 2012

mrm32 said: ↑

Wait Team Bondi is gone?! So no LA Noire sequel?
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Rockstar owns it, there will most certainly be a sequel.

BigBenito · May 17, 2012

chow_yun_fat said: ↑

Curt Schilling and co. pulled a fast one on the state of Rhode Island. No way it cost $75 million to form that company and develop one game. Since it's a corp, they get away scott freeee.

Played the demo...and the game was sub par. Controls def need some work. It's not as bad as Ninja Theory games, but not as fluid as Dragons Dogma or Skyrim.
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I believe it is their mmo that is in development to be the big drain. They bought out Big Huge Games and let EA fund them to finishing Kingdom of Amalur, but expected a ton more boxsales?

Maybe, just maybe your first game shouldn't have spent so much on Todd McFarlane and RA Salvatore. And never get in bed with EA.

DaDakota · May 17, 2012

Wow, I almost moved up there to work for them...WHEW !

DD

Nero · May 18, 2012

Governor's Aide: Hey Governor! I have a great idea. Let's invest 75 million of the state's money in a... VIDEO GAME COMPANY!

Governor of R.I.: YES! That's an outstanding idea, chum! WHAT COULD POSSIBLY GO WRONG??

Yung-T · May 18, 2012

Like I said, RedN should've bought that frickin copy. He ruined an entire company.

seclusion · May 18, 2012

WPRI.com said:

38 Studios has quietly removed Curt Schilling and its top two executives from its website.

Photos and biographies of Schilling, 38 Studios’ founder and chairman, along with its CEO Jennifer MacLean and its Chief Operating Officer Bill Thomas have all disappeared from the site. The changes were first noted by Joystiq, the gaming news outlet.

Up to now Schilling had been listed on the site’s “Visionaries” page along with three other individuals.

....

In addition to Schilling, two individuals were gone from the “Management” page by Thursday night: MacLean, who’s been on maternity leave since mid-March, and Thomas.

Thomas attended Wednesday’s emergency EDC meeting and spoke briefly with a PBN reporter afterwards, but on Thursday the company’s dial-by-name phone directory didn’t find a match for him. 38 Studios has not responded to multiple requests for comment throughout the week.

Update: Schilling and Thomas were added back to the “Visionaries” and “Management” pages shortly after this post was published, but MacLean had not been as of 9:15 p.m.

38 Studios has also deleted its board of directors page. A cached version of the board page from Friday listed nine directors: Schilling, MacLean, Thomas, Martha Crowinshield, Jim Halpin, Doug MacRae, Kevin Roche, Sundar Subramaniam and Tom Zaccagnino. The directors’ pages said “Access denied” rather than “Page not found.”
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Um yeah...I wonder what's going on over there.

Also I just noticed a lot of people are blasting Schilling over this due to him supposedly being a hard line republican.
He also allegedly took 4 million out of their loan (from rhode island) for himself to cover a loan he made to the company.
Someone quoted this as well:

Curt Schilling said:

"There can be no question our country is in the worst economic crisis of our lifetimes. I also think there can be no question that it falls on us, the individuals, to find a way out of our own personal crisis." -- February 2011
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Yikes.

mleahy999 · May 18, 2012

http://www.boston.com/business/tech...s_rhode_island_curt_schilling_reeling/?page=1

"After missing a $1.1 million payment May 1 and a personal plea from Schilling for more public assistance this week, 38 Studios has said it does not not have enough money to pay its employees."

"Schilling also personally guaranteed a $2.5 million line of credit that 38 Studios took out in 2010, which the company repaid with a portion of the proceeds it received from Rhode Island."

"It was well-reviewed and has sold about 1 million copies at about $60 each, according to market research company VGChartz."
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I believe floating new money and writing rubber checks to pay off old debts is called a ponzi scheme or kiting. Curt has been made whole. He's all set. If they sold a 1mm copies and still can't make payroll, that means every private investor has cashed out. Now Rhode Island is left holding the bag. Suckers!

BigBenito · May 18, 2012

<iframe width="560" height="315" src="http://www.youtube.com/embed/m9nvnrP0j8U" frameborder="0" allowfullscreen></iframe>
Fly-through of the mmo world.

BigBenito · May 24, 2012

http://blogs.wpri.com/2012/05/24/38-studio-lays-off-its-entire-staff/

RIP 38 studios

The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.

These layoffs are non-voluntary and non-disciplinary.

This is your official notice of lay off, effective today, Thursday, May 24th, 2012.
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br0ken_shad0w · May 24, 2012

mrm32 said: ↑

Wait Team Bondi is gone?! So no LA Noire sequel?
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Team Bondi's execs ran that company to the ground. There's a reason why Sony and Rockstar got rid of them.

Mr.Scarface · May 24, 2012

Im sure Curt will say it's not his fault he mismanaged the company and swindled MILLIONS from Rhode Island......IT'S OBAMA'S FAULT!

Raven · May 24, 2012

900+ page thread, that stretches back to 2009, with occasional post by Schilling himself.

http://www.fohguild.org/forums/mmor...8-studios-copernicus-mercury-other-stuff.html

Enjoy, uh, I guess.

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[Video Games] Curt Schilling's 38 Studios in serious trouble. (Kingdoms of Amalur)

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Xerobull You son of a b!tch! I'm in!

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