Curt Schilling's game studio struggles to stay afloat
A missed loan payment to the state of Rhode Island by Kingdoms of Amalur: Reckoning developer 38 Studios kicked off a chain of events that cast light on a studio seemingly struggling to stay afloat. The studio defaulted on a $1.125 million loan payment to the Rhode Island Economic Development Corporation on May 1. During a series of meetings with the state, 38 Studios said they couldn't pay their employees and asked for more help from Rhode Island. The studio later delivered a payment to the state, but then said they couldn't cover the check. Meanwhile, the director of the Economic Development Corporation resigned. 38 Studios is currently working on a massively multiplayer online game codenamed Copernicus, according to the official website for the company. Founded in 2006 in Massachusetts as Green Monster Games, 38 Studios was lured to Rhode Island in 2010 by a $75-million loan guarantee from the state. At the time state officials argued that the studio would bring hundreds of jobs and millions in tax revenue to the state.
38 Studios preparing to sell Kingdoms of Amalur to help pay off debt
Curt Schilling's ill-fated game developer 38 Studios is ready to sell its sole title, Kingdoms of Amalur: Reckoning, and associated assets to an unnamed party in an effort to pay off its $130 million debt, The Providence Journal reports.
The statement comes from Providence lawyer Richard J. Land, who did not identify the parties interested in the sale.
"Who knows what the value ultimately will be," Land said. "But there is interest in the assets."
Court hearings begin on Wednesday.
38 Studios declared bankruptcy in June 2012 after missing several payments to the state. Shortly after,...
38 Studios loan wasn't 'micromanaged' because state faced other problems, says governor
Rhode Island Governor Lincoln Chafee was "reluctant to micromanage" the state's investment in now-defunct developer 38 Studios, saying the state had its hands full with other problems at the time, according to a recent New York Times feature.
The state's main reason for pushing ahead with funding for former Red Sox pitcher Curt Schilling's studio was to create more jobs. The deal between Schilling and the state started in 2010 under then-governor Don Carcieri, and was already underway when Chafee took office.
"They were telling us we could have unemployment of 13 or 14 percent!"...
Rhode Island considering defaulting on 38 Studios debt
Rhode Island legislators are considering a proposal that would have the state default on the debt it owes as a result of 38 Studios' collapse last spring, AP reports.
The Rhode Island Economic Development Corporation gave 38 Studios a $75 million loan in 2010 in an agreement under which the game developer would create 450 jobs over the subsequent three years. But the studio failed to make its first payment on the loan last May, and during the next month laid off its entire staff before declaring bankruptcy.
That left the state of Rhode Island on the hook for approximately $100 million,...
38 Studios' Curt Schilling asks judge to dismiss lawsuit over $75 million loan
On Friday, former Red Sox pitcher and 38 Studios founder Curt Schilling's attorneys asked a Rhode Island judge to dismiss the lawsuit filed against him and other former 38 Studios executives, according to a report from the Associated Press.
According to the AP, attorneys representing the bankrupt 38 Studios filed a request with Superior Court Judge Michael Silverstein to throw out the state's lawsuit. Attorneys reportedly argued that 38 Studios executives disclosed its financial needs to the Rhode Island Economic Development Corp. and did not defraud the state agency.
Rhode Island and the...
Curt Schilling's 38 Studios sued by Rhode Island over $75 million loan guarantee
The state of Rhode Island is suing Curt Schilling's bankrupt game development studio over the $75 million loan guarantee provided by the state, Gov. Lincoln Chafee said in a public statement. The 96-page complaint against the defunct game developer and its advisors alleges fraud, negligence and civil conspiracy over the state-backed funding of 38 Studios' relocation to Rhode Island and the development of MMO Copernicus.
Kingdoms of Amalur: Reckoning developer 38 Studios, founded by Schilling in 2006, shut down in May after failing to make loan payments and employee payroll.
"When it...
Rhode Island governor considering overhaul of agency that provided 38 Studios' loan
Rhode Island Governor Lincoln Chafee may restructure the government agency that provided the backing for 38 Studios' office in the state, according to a statement from the governor, reports Reuters.
Chafee's office recently commissioned a report on the Rhode Island Economic Development Corporation (RIEDC), which provided the original $75 million loan to Curt Schilling's 38 Studios in 2010. The internal study was performed by the Rhode Island Public Expenditure Council, an independent nonprofit research firm, and was published on Tuesday. It suggests that the RIEDC be revamped and that a...
Rhode Island lawmakers face political blowback from 38 Studios bankruptcy
The $75 million loan guarantee granted to Curt Schilling and the now bankrupt 38 Studios could have an effect on the upcoming Rhode Island elections, according to the Associated Press. Lawmakers are facing heavy questions about the investment.
The loan guarantee was given to 38 Studios by Rhode Island's Economic Development Corporation. Although the EDC now operates under a new policy that caps a loan at $10 million, it went into effect only last year after Gov. Lincoln Chaffee took office. The original legislation, which passed in 2010, reached up to amounts of $125 million in loans....
Beautiful environments from 38 Studios' 'Project Copernicus' revealed
The game world environments from the massively multiplayer online game 38 Studios was working on before it closed were revealed in two YouTube videos posted by a former 38 Studios employee this week.
The videos, which were posted by 38 Studios' former senior environment artist, show the stunning environments from Project Copernicus, the codename for a MMO that was to take place in the fictional realm of Amalur.
The first video shows the city of Jottunhessen and its environments after the game was optimized and polished and the developers "fine-tuned [the] occlusion and lighting to meet the...
38 Studios' 'Copernicus' would have been free-to-play
Copernicus, the half-finished project by now defunct 38 Studios', would have been a free-to-play massively multiplayer online title, company founder Curt Schilling told Boston magazine in recent interview.
"We were going to be the first triple-A, hundred-million-dollar-plus, free-to-play, micro-transaction-based MMO. That was one of our big secrets," Schilling told Boston. "I think when we eventually showed off the game for the first time, the atom bomb was going to be free-to-play. When we announced that at the end, that was gonna be the thing that, I think, shocked the world."
Schilling,...
38 Studios burned through $133 million before bankruptcy
Kingdoms of Amalur: Reckoning developer 38 Studios was "hemorrhaging cash" at a time when the studio was not bringing in any revenue, according to a former executive director of the Rhode Island Economic Development Corporation.
In documents obtained by the WPRI, the studio spent $133 million before it went into bankruptcy last month. The former executive director of the R.I. Economic Development Corporation, Saul Kaplan, said 38 Studios was spending big with taxpayer money.
"The thing that is most amazing to me is their burn rate was about $5 million a month all through 2011, heading into...
Boston Magazine chronicles 38 Studios' demise building a game that 'wasn't fun'
In an article in Boston Magazine, Curt Schilling, founder of 38 Studios, and his former employees tell the inside story of the events that precipitated the bankrupt studio's recent collapse after spending six years designing an MMO that "wasn't fun."
Schilling aspired to amass enough wealth to fund a $200 million center for autism, in honor of his autistic son. Schilling was worth $90 million when he retired from baseball, and he believed that 38 Studios would create the additional wealth required.
His initial expectation was that it would take four years and $50 million, including a $5...
Trustee for 38 Studios bankruptcy seeks help to sort out remaining assets
Jeoffrey Burtch, the trustee in the 38 Studios federal bankruptcy case, wants to hire a law firm that specializes in intellectual property and media law, according to the Providence Journal.
Burtch is seeking the law firm Cozen O'Connor's help to sort out what remains of 38 Studios, and how the remaining assets may be used to settle the bankrupt studio's outstanding debt.
In bankruptcy court on Tuesday, Richard Wester, chief financial officer for 38 Studios, revealed that the company would have remained solvent had it sold 2 million copies of Kingdoms of Amalur: Reckoning. The revenue...
38 Studios founder Curt Schilling sued by bank for $2.4 million
One of 38 Studios' creditors is trying to recover some of the money it loaned to the bankrupt studio by suing its founder, Curt Schilling.
Citizens Bank filed suit in Massachusetts Superior Court last week – the same day 38 Studios filed for bankruptcy – seeking repayment of $2.4 million from Schilling. According to the suit, Schilling personally guaranteed a $2 million line of credit and a $350,000 credit cart account with the bank which has not been paid.
"Schilling is liable to the Bank in the total amount of $2,394,240.40" plus fees, interest and attorney costs, according to...
Subpoenas sent out to 38 Studios
Rhode Island State Police, FBI and U.S. attorney's office in Providence have subpoenaed documents from Curt Schilling's 38 Studios after the company filed for bankruptcy last week.
The Bank of Rhode Island, which loaned 38 Studios $8.5 million earlier in the year when it encountered financial trouble, confirmed to the Providence Journal that it received a subpoena for 38 Studios' records. The Rhode Island Economic Development Corporation, which lured 38 Studios to Providence in 2010 with the promise of a guaranteed $75 million loan, also confirmed that it received a subpoena requesting...
'38 Studios spouse' says company knew about cancelled insurance
38 Studios did not pay health insurance for several months and was aware of its cancellation without informing employees, an unnamed wife of a former company employee wrote in a letter published on Gamasutra today.
The 38 Studios employee learned of insurance termination on May 22, when the pregnant wife of another employee was informed by her doctor that it would run out at midnight on May 24. "When confronted, 38 Studios admitted they had been aware since the 21st of May that due to lack of payment for several months," writes the "38 Studios spouse." "Again, they knew the problem existed...
Rhode Island values 38 Studios assets in 'tens of millions,' investors interested
Rhode Island officials have valued the state's acquired assets from the recently bankrupted 38 Studios in the "tens of millions" of dollars, state counsel announced during a press conference today.
John Savage, a partner at the firm that's serving as counsel to the Rhode Island Economic Development Committee, was not more specific than that when asked about the assets' worth.
"We've had, in recent days, discussions with investors that were and, to my knowledge, are discussing substantial numbers, which indicate that there could be significant value to the assets," Savage said. "The...
38 Studios declares bankruptcy
This morning, Curt Schilling's 38 Studios filed for bankruptcy after a long struggle that included missed payments and a complete layoff of all employees.
Rhode Island police told the Providence Journal that they would be joined by the attorney general's office, the U.S. Attorney's office and the FBI in launching a formal investigation into Schilling's video game company.
In a statement to the Journal, 38 Studios said, "This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that...
'Epic Baltimore' rises out of the ashes of Big Huge Games
Many of the roughly 80 employees of Big Huge Games who found themselves suddenly out of work when Curt Schilling's 38 Studios imploded in May will be starting new jobs soon as employees of Epic Games, Epic confirmed to Polygon today.
In a letter sent to employees today, Epic Games president Michael Capps said that the former Big Huge Games leadership team contacted them on Wednesday.
"They wanted to start a new company and keep together some of the key talent displaced by the layoff, and hoped that they could use an Epic IP as a starting point for a new game," he wrote in the letter, which...
New 'Project Copernicus' screenshots released by Curt Schilling
Six new screenshots of the troubled massively multiplayer game Project Copernicus were released last night by 38 Studios' Curt Schilling showing additional areas of the Copernicus world and details of what the studio planned for the long in-development title.
The photos, posted to Schilling's Facebook page, present a number of kingdoms the development team was working on, a shanty town-style hub and the remains of a giant Balor monster.
"The entire world, everywhere you saw, every point you could see, as far as the eye could see, you could go," writes Schilling in an image subtitle.
While...
Schilling could lose $50 million in 38 Studios closure
Curt Schilling says he could lose $50 million of his own money should 38 Studios close.
'Kingdoms of Amalur: Reckoning 2' was in pre-production before staff was let go
The sequel to Kingdoms of Amalur: Reckoning was in pre-production when staff at Big Huge Games were let go last week, according to a Joystiq story.
Sources close to the deal told Polygon that the studio was in advance talks with a publisher prior to the legal drama that would lead to the loss of the team. Those talks fell through once employees were let go, we were told. Full coverage of 38 Studio's legal troubles can be viewed here.
The intellectual property, tech and code for Amalur is currently owned by 38 Studios but may soon be taken by the state of Rhode Island, making it unlikely...
No new 'Kingdoms of Amalur' patch barring 'some sort of miracle'
Kingdoms of Amalur will not receive any new patches "barring some sort of miracle," developer Big Huge Games announced on the game's forum.
In a post titled "Thanks, Apologies, and Farewell!" lead designer Ian S. Frazier stated the studio received clearance to begin development on a PC-only patch, with plans to include two additional difficulty modes, camera features and bug fixes. However, this would not see the light of day as "before we finished, the studio collapsed."
"I wanted to apologize for the lack of a patch for Reckoning," he wrote. "It's something we very much wanted to do, but...
38 Studios: 'We thought the governor was an ally'
The former creative director of 38 Studios, Steve Danuser, told NECN that the Rhode Island governor Lincoln Chafee turned his back on the studio in their time of need.
"We just needed a little more help, and we thought the state would have our backs on that," he told the television station.
"We thought the governor was an ally. It didn't turn out that way."
Danuser was the creative lead on 38 Studio's role-playing game, Kingdoms of Amalur: Reckoning. He along with all of 38 Studios staff are now unemployed after a studio-wide lay-off that took place last week.
"The governor has turned his...
38 Studios passes second mortgages onto some former employees
Some of the hundreds of 38 Studios employees laid off yesterday were hit with a second round of bad news this week when they were told that homes they thought the company had sold for them hadn't been, and that they may be stuck with a second mortgage, Polygon has learned.
Several sources directly impacted by the mortgage issue confirmed the news today and a 38 Studios official, who asked to not be named, said the company is working to try and get to the bottom of the notifications and find a resolution.
One former employee said they discovered this week that their Massachusetts home, which...
Studios reach out to former 38 Studios staff, list of vacancies created
In the wake of 38 Studios letting go all of its staff, development studios in the Providence region and beyond have reached out to those affected by the layoffs to advertise vacant positions.
An overwhelming number of developers from the US and Canada took to Twitter earlier today to advertise and extend job offers to former 38 Studios staff.
Games and technology writer Alex Rubens compiled an extensive list of studios with vacant game development positions, which can be viewed here.
Among the gaming and tech companies in Rhode Island extending job offers to former 38 Studios staff include:
...
38 Studios lays off entire staff
Curt Schilling's 38 Studios laid off all of their employees today, shutting down both their Rhode Island office and Maryland-based subsidiary Big Huge Games, a source familiar with the company tells Polygon.
The news came as a surprise to nearly everyone involved, including the state of Rhode Island and Governor Lincoln Chafee who during an afternoon press conference said that as of this morning they hadn't heard a word about possible layoffs or a closure.
During the evening press conference Chafee attributed the sudden studio closure and financial plummet to the studio's fist game, K...
Image leaks could be from 'Project Copernicus'
Images from what appears to be 38 Studios' Project Copernicus have been leaked to 38Watch, a Kingdoms of Amalur online community.
Posting in a thread entitled "You guys deserve this", a forum member who only joined in May posted screenshots featuring characters from what is believed to be 38 Studios' upcoming video game. One of the screenshots carries the official 38 Studios logo.
The forum poster who goes by the nickname "Alyn" wrote: "38 isn't dead yet. Amalur is worth fighting for. Spread the fire."
We have reached out to 38 Studios to confirm whether the screenshots are legitimate.
The...
38 Studios may miss out on tax credits
The studio behind Kingdoms of Amalur: Reckoning may miss out on millions of dollars in state tax credits because it wasn't incorporated in Rhode Island.
Rhode Island's tax credit law explicitly states that productions are only eligible to receive tax credits if the business is "formed under the laws of the state of Rhode Island". While 38 Studios registered as a business in Rhode Island in September 2010, it was organized under Delaware law and its Rhode Island registration was as an out-of-state LLC.
A spokesperson for Rhode Island governor Lincoln Chafee said that the state is aware that...
38 Studios CEO and senior VP leave company amidst layoffs
Kingdoms of Amalur developer 38 Studios is lighter at least two high level employees today, as CEO Jen MacLean and senior VP of product development John Blakely have left the struggling company.
The two execs indicated earlier today that they were no longer with 38 Studios via their respective LinkedIn profiles, a change spotted by WPRI. A person familiar with the situation tells Polygon that the profiles are indeed accurate and that the pair are no longer with the studio.
MacLean's profile indicates that she left 38 Studios officially as of March. She was reportedly on indefinite maternity...
Rhode Island governor confirms layoffs at 38 Studios
The Governor of Rhode Island confirmed that staff layoffs have occurred at 38 Studios in the wake of the studio's struggle to repay its debt to the Rhode Island EDC.
Speaking to the media after a three hour closed door meeting with Rhode Island's EDC today, Governor Chafee revealed that the meeting concerned the company's payroll and staff layoffs.
"I believe it was a mix of who's made payroll and a number of layoffs," he said, without going into detail about how many layoffs were made and in which departments.
"I know that the tax payers want answers, and they'll get them overtime. All I...
'Project Copernicus' video revealed in midst of financial turmoil
38 Studios' long-in-development massively multiplayer online game got two outings today in the midst of legal wranglings between the state of Rhode Island and the company behind Kingdoms of Amalur: Reckoning.
Codenamed "Project Copernicus," little was known about the massive online game other than that it would take place within the fictional realm of Amalur.
But that changed this afternoon when Rhode Island Gov. Lincoln Chafee told a press gathering that the game is expected to be released in June 2013. Later in the afternoon a video for the game hit YouTube.
A 38 Studios spokesman...
38 Studios makes late payment to state
The developers of Kingdoms of Amalur: Reckoning made good on a payment to the state of Rhode Island today, Governor Lincoln Chafee told a gathering of press this afternoon.
The $1.125 million check was handed into the state and the check has cleared, Chafee said.
A missed loan payment to the state of Rhode Island by Kingdoms of Amalur: Reckoning developer 38 Studios kicked off the chain of events that cast light on a studio seemingly struggling to stay afloat.
The studio defaulted on the loan payment to the Rhode Island Economic Development Corporation on May 1. During a meeting with the...
Rhode Island's Reckoning: A quick history of 38 Studios and their deal with Rhode Island
Kingdoms of Amalur: Reckoning could become the first video game in history to cost a state tens of million of dollars.
Years after bringing together a dream team of developers, artists and writers to create a fantasy fiction that was meant to be home to countless video games and help power a billion dollar company, 38 Studios seems poised to collapse under the weight of debt and government scrutiny.
On Monday, the board of directors for the state-funded Rhode Island Economic Development Corporation plans to hold a public meeting to discuss what to do about the studio they backed for a $75...
38 Studios hands over bad $1.125m check to state, can't pay its employees (update)
Former Red Sox pitcher Curt Schilling's video game company attempted to make good on an overdue payment to Rhode Island's Economic Development Corporation today. Unfortunately, financially troubled 38 Studios didn't actually have the funds to cover the million dollar check it cut.
The studio behind Kingdoms of Amalur: Reckoning handed over a check to state for the $1.125 million "annual guarantee fee" payment it defaulted on earlier this month, according to a report from WPRI. Afterward, the company's CFO informed the state that 38 Studios had insufficient funds to cover the check. So the...
Kingdoms of Amalur developer asks state for bailout
38 Studios founder Curt Schilling went before state officials today, baseball hat in hand, to ask for additional help from Rhode Island's Economic Development Corporation after the developer defaulted on a promised payment earlier this month.
The studio behind action RPG Kingdoms of Amalur: Reckoning and an upcoming massively multiplayer online game dubbed Project Copernicus failed to make a $1.125 million payment to the state on May 1. That "annual guarantee fee" is part of an agreement tied to a $75 million loan guarantee from the state and is calculated yearly as 1.5% of the "average...
38 Studios defaulted on loan payment
Kingdoms of Amalur: Reckoning developer 38 Studios defaulted on a $1.125 million loan payment to the Rhode Island Economic Development Corporation (EDC), according to reports from WPRI.
In 2010, the Rhode Island EDC gave 38 Studios a $75 million taxpayer-backed loan to lure the studio from Massachusetts to Rhode Island. Under the terms of the loan, 38 Studios agreed to pay the EDC an "Annual Guaranty Fee" of 1.5% of the loan ($1.125 million) on May 1 of each year. Reports state that the studio received $49.8 million in cash from the loan but defaulted on May 1 when it failed to make the...
'Kingdoms of Amalur: Reckoning' developer could be in financial trouble
The studio behind Kingdoms of Amalur: Reckoning may be in financial trouble, reportedly meeting with state officials to discuss its financial future.
Rhode Island Governor Lincoln Chafee told NBC 10 that state officials have been meeting with 38 Studios' owner and former Red Sox pitcher, Curt Schilling to work on "different issues".
"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 studios," Chafee said.
"We're working with 38 Studios on different issues. That's all I can report now."
38 Studios was founded in Massachusetts but moved to Rhode...
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