38 Studios' assets to be auctioned off, Microsoft seeking to reclaim Xbox 360 development kits

The remaining assets for 38 Studios, the bankrupt developer founded by former Red Sox pitcher Curt Schilling, are being auctioned off, and the sale includes Xbox 360 XDK developer units that Microsoft hopes to reclaim.

According to an online listing, auctioneers at the SJ Corio Company have scheduled two events — one on October 16th in Maryland and one on October 23rd in Rhode Island. The auctions list assets including computers, printers, copiers, projectors, and televisions. Under the "Gaming consoles" category, the October 16th auction lists "Xbox 360 XDK consoles," referring to the Xbox Development Kits that Microsoft provides to Xbox developers.

Microsoft licensed the development kits to 38 Studios to develop titles on, but the kits themselves were never the property of the studio.

"Xbox 360 Development Kits (XDK) are the property of Microsoft and are only licensed to authorized studios and may not be assigned or sold to any third party without the written consent of Microsoft," a representative from Microsoft said in a statement to Polygon. "We will be contacting the appropriate parties involved in the auction of 38 Studios' assets to remove the XDK units from the auction listing and to secure the return of the consoles to Microsoft."

In June, the Trustee assigned to the bankruptcy case sought help from outside council on how to account for and potentially sell the company's remaining assets to offset its debt obligations. The impending auctions are part of that ongoing process.

38 Studios' troubles began in May when it defaulted on a loan payment to the state of Rhode Island. The studio declared bankruptcy and laid off its staff in June. Earlier today, Rhode Island Governor Lincoln Chafee was quoted in a report saying that he's considering restructuring the Rhode Island Economic Development Corporation, which provided the loan to the developer.