38 Studios Declares Bankruptcy, Investigation Begins
Things just aren't going well for Kingdoms of Amalur: Reckoning developer 38 Studios.
The company has officially declared bankruptcy and on top of which, the Rhode Island State Police and federal authorities have launched an investigation into the company ex professional pitcher Curt Schilling founded.
As for the bankruptcy move, here's a statement from a 38 Studios spokesperson:
"This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."
And unfortunately, the investigation into possible mismanagement of funds is under way, as state authorities, the FBI, and the U.S. Attorney's office "are working together to investigate activities that have recently come to light at 38 Studios." We hate running stories like this, especially when it's about a company that produced a pretty good game that sold relatively well (1.2 million in the first three months isn't too shabby, but they needed 3 million just to break even).
Oh well. Here's hoping all the former 38 Studios peeps can find new jobs fast. Good luck to them all.
6/7/2012 11:01:56 PM Ben Dutka