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.