Posted by Chuck Corbin on May 25, 2012

This Is The End For Curt Schilling’s 38 Studios

After missing a May 1st loan payment, lawmakers in Rhode Island started questioning whether 38 Studios, the game development company started by former Red Sox pitcher Curt Schilling, could remain viable. It now appears that that answer was “No.” as the entire staff at 38 Studios and Big Huge Games were given their layoff notices yesterday. With the closer of 38 Studios, the taxpayers of Rhode Island will be on the hook for the $70 million loan, which will be closer to $112 million after interest.

The following email was sent to employees of BHG and 38 Studios:

The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.

These layoffs are non-voluntary and non-disciplinary.

This is your official notice of lay off, effective today, Thursday, May 24th, 2012.

It’s not all doom-and-gloom for the Rhode Island taxpayer, however. Though they are now on the hook for a $70 million loan, they will now gain possession of the Kingdoms of Amalur IP. However, the IP is estimated to only be worth about $20 million, well short of the $112 million that the state will have to pay. Part of the reason why Kingdoms of Amalur is worth so little is due to the fact that while it was critically praised, it sold only 1.22 million copies. Governor Lincoln Chafee said that it would have needed to sell 3 million copies to just break even, and that “the game failed”. With Rhode Island now being forced to pay back the staggering amount of the loan, I wouldn’t be surprised to see them conduct some sort of Senate-type hearings about what’s going on.


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