Curt Schilling's Video Game Studio Won't Face US Federal Charges

In the aftermath of 38 Studios' collapse, a slew of government investigators said they were probing the maker of Kingdoms of Amalur: Reckoning for its attempts to secure loans using tax credits that never were issued. Tax credits are the biggest reason the studio, founded by former Boston Red Sox pitcher Curt Schilling, became such a scandal in its home state of Rhode Island when everything went bust.

A spokesman for the US Attorney in Rhode Island told the Associated Press on Friday they were through with the investigation. A state investigation still is proceeding. 38 Studios begun work in Providence, RI in 2010, lured by a $US75 million loan guarantee from the state. Investigators were looking into statements 38 Studios may have made to potential creditors for any bank fraud. The feds didn't find any.

In addition to the state's own criminal investigation, Rhode Island's economic commission is investigating whether anyone can be held financially liable. The state's looking at about a $US100 million loss on the venture with 38 Studios. If they're looking at Schilling himself, they may not get far. The former all-star pitcher is out about $US50 million of his own money.

Rhode Island owns all of the company's assets and is putting them up for auction next month to try to recoup some of the dough.

No federal charges on Schilling's 38 Studios


Comments

    Schilling is a fool for even accepting that amount of money for a game that clearly wasn't going to sell well in the first place, especially since it came out just months after Skyrim and offered little in the way of innovation.

      I think you're talking about reckoning... which was released to continue funding his other game. It also broke more than even, but probably not well enough to see a better revenue share with EA.

      He wanted to make an MMO... which, as EA found out with The Old Republic, tends to be an all or nothing kind of deal.

      Clearly Mr. Shilling should have used his psychic powers several months before the grant was given to see the folly of his ways, the lack of direction that would occur during production and the overall incoherency of design that would lead to 38 Studios inevitable downfall.

      Baseball legends are known for their precognition you know.

      I enjoyed KoA and there really wasn't any evidence it wouldn't sell, It was bad timing and its really something you can't do much about. It may not have been innovative, but I still enjoyed it. Project Copernicus probably would have been the MMO to introduce me to the genre too

Join the discussion!

Trending Stories Right Now