Rhode Island Governor Intervenes as 38 Studios Struggles to Remain Solvent

May 15, 2012 -

Former Red Sox pitcher Curt Schilling is probably not having a good week. The studio he founded, 38 Studios, is having serious financial trouble according to several news reports coming out of Rhode Island, and the state is doing what it can to protect the estimated $75 million in investments it spent to lure the studio away from Massachusetts.

According to a report in the Providence Journal, Rhode Island Governor Lincoln Chaffee (I) has been meeting with executives at the studio over the last few days to figure out a solution to keep the company going. While Governor Chaffee admits that he is working under a "tight time-frame" to "keep 38 Studios solvent," details about the meetings are being kept quiet.

"We're concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community," Gov. Chafee told WPRI. "We're working on different issues with them."

"It's always been a volatile industry to be in. That's just the risk you take when you get into the business," he added.

Governor Lincoln Chaffee was not always so keen on the deal. When he ran for the Governorship in 2010 he thought it was a bad idea. Nevertheless, a $75 million loan was awarded to 38 Studios by the Rhode Island Economic Development Corporation before Gov. Chaffee took office. 38 Studios moved to Providence, R.I. in April of 2011, pledging to employ 450 people in the area. As of March 15 the company had 379 full-time employees divided between its two offices, 34 full-time contractors, 8 interns and 18 job openings.

38 Studios has received $49.8 million of the $75 million loan, which is being used to fund the development of its MMO Copernicus. The company released Kingdoms of Amalur: Reckoning earlier this year, which did fairly well at retail and received high marks from most critics.

Source: GamesIndustry International


Comments

Re: Rhode Island Governor Intervenes as 38 Studios Struggles ...

Yeah... I don't think it's that good of an idea to take on large, high risk projects as a new company getting into the industry and an MMO? Did they not know how many and easily of those things fail?

 
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