All-Star Pitcher Schilling's Video Game Studio Can't Pay Its Employees, Either

It is looking dire for 38 Studios, the Kingdoms of Amalur: Reckoning studio set up with a huge hunk of public funding from a Rhode Island jobs creation program. So now, we're talking about an operation that took taxpayer money with the intent of creating jobs and can't pay the employees working in them. That's about the worst outcome possible.

Schilling, well known as a key member of the 2004 World Series Champion Boston Red Sox — the franchise's first world champion in 86 years — is also an avid gamer. So, after his 2007 retirement he founded a development studio that sought a loan from Rhode Island's Economic Development Corporation back in 2010, intending to bring jobs to that state. The loan was said to be $US75 million; the Corporation had $US125 million in funds to disburse. 38 Studios has received about $US50 million in funds so far, reports WPRI-TV of Providence, R.I.

Joystiq has reported that 38 Studios, in addition to missing a $US1.125 million instalment payment because of insufficient funds, also missed payroll this week for its employees. "Project Copernicus," the code name for the studio's next game, won't be ready to show at E3 in a few weeks, so the studio pulled out of that show.

The state's Economic Development Corporation held an emergency meeting yesterday to address 38 Studios' crisis and examine the options. The state's governor is trying to make the deal work, but it has already cost one person his job: Keith Stokes, the executive director of the Economic Development Corporation, who engineered the deal for 38 Studios. He resigned yesterday.

38 Studios doesn't make payroll, can't pay state either [update] [Joystiq]

38 Studios misses payroll, can't pay RI [WPRI-TV]


Comments

    Man, I feel bad for those guys. Here's hoping they all land on their feet and everything goes their way.

      as much as I feel the same, I really doubt that the company is gonna make a comeback from this.

      which is a shame, coz Kingdoms of Alamur is a great debut. Shame that EA didn't push it as much as they could. I mean, I only heard about it maybe a week before it launched.
      For a new IP, I would've thought that the publisher would try & get it out there as much as possible...
      oh well. cant do anything about that now.

        We could wait 15-20 years and fund a kickstarter for KoA 2...

        actually I like one of the problem's was that the game was way too hyped (for months it was on video game news sites), from very polished marking videos to reviews/previews that after playing the game look as though they were bought. Once the demo was out they said that it was an old build that the bugs and camera are fixed in the current build, we are still waiting on a fix. Had they not marketed the game as an action alternative to Skyrim they wouldn't have got as much flack.

        Not to mention that it was suppose to spark a HUGE franchise

        from the faq:
        "Will there be other products available set in the same world?

        38 Studios has created a vast and original universe, Kingdoms of Amalur™, which contains far more content than can be included in a single game. The team’s goal is to immerse guests in this universe through an interconnected, transmedia entertainment experience, including books, toys, comics, and, of course, videogames. The cornerstones of Kingdoms of Amalur™ are the RPG Reckoning and the MMO codenamed Project Copernicus."

    this is really disappointing news. its never pleasant hearing about a studio that could go under. i really enjoyed KoA and was hoping for further content to keep it fresh. i guess that might not happen

    but on a side note i think this sort of reporting can be detrimental to the hole situation. everyone knows the effects of propaganda. i am not saying this article presents false information but it can't be good for the studio. also how cool is it that a 'jock' is also an avid gamer! he definitely had balls to start up a high risk venture in an economically hard time and even if it does go down i will remember amalur fondly for what it was, not what people wanted it to be

    Awww man. Kingdoms of Amalur wasn't the greatest game out there, but it was still pretty damn good. I had hours of fun with it. I was looking forward to seeing what they could do with the IP.

    I hope this doesn't put off other companies from branching out into new IPs.

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