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.

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 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.

Chafee, who was an opponent of the original deal, told the press that it's now up to the studio to get out there and find private funding. He added that he understands that the studio's next game, the massively multiplayer codenamed Copernicus, will hit in June of 2013.

"I will do everything in the law to protect the tax payers and also not break the law," he added. "My goal is to protect the taxpayer now."

The state says it is examining the agreement and making sure there is compliance with both the agreement and the law. They have also hired an outside auditor to make sure that the all of the money currently given to the studio, $49 million, has been spent.

Gov. Chafee estimates that 38 Studios is spending about $4 million a month right now to stay afloat.

Chafee declined to say what the state would do if the studio went under, instead saying that Rhode Island is doing everything possible to make sure that doesn't happen.

"We're in deep," he said.

Make sure to read our history of 38 Studios and their deal with Rhode Island for a deeper look into everything that lead up to this.

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