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Report: 38 Studios Knew The Ship Was Sinking Early On

The unfortunate saga continues and things aren't getting any better. Just worse.

According to The Providence Journal, 38 Studios management knew their funds would dry up even before moving the company from Massachusetts to Rhode Island.

Rhode Island Economic Development Corp. lawyer Max Wistow claims there is "crushing evidence" that shows that founder and former Red Sox ace Curt Schilling and other 38 Studios executives purposely hid that information. Now, the state of RI is saying the currently bankrupt developer relied on "speculative financial projections" for the sake of daily operation. Rhode Island has sued Schilling and other high-placed 38 Studios officials over the $75 million loan the state paid out to the Kingdoms of Amalur developer.

The state keeps saying everyone in question knew the company was in trouble, or at least that they should've known, and they failed to inform the EDC Board. That complaint includes 17 counts of alleged wrongdoing; the state is claiming fraud, unjust enrichment, civil conspiracy, breach of implied covenant of good faith, negligence, legal malpractice, and breach of fiduciary duty. ...yeah, it's just a mess.

Tags: 38 studios, rhode island, curt schilling, 38 studios bankrupt

4/4/2013 10:40:23 PM John Shepard

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Comments (10 posts)

WorldEndsWithMe
Thursday, April 04, 2013 @ 11:00:11 PM
Reply

If every company who relied on speculative financial projections were taken to task there wouldn't be any companies left. Journey bankrupted ThatGameCompany and they knew it would. The reason this is a problem (aside from the obvious mismanagement) is because it's a video game company that got in bed with the government.

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Underdog15
Friday, April 05, 2013 @ 12:16:49 PM

Digital Extremes is here in my hometown and did that here in Canada, but fortunately, it worked out for them. They were only allowed to keep the money if they created X number of jobs and retain them for X number of years. They did... but could have been bad for them if they didn't.

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ethird1
Friday, April 05, 2013 @ 5:18:36 AM
Reply

Kingdoms of Amalur is one of the greatest games ever made. It destroys Final Fantasy. Get this game! Greatest expansions EVER!

End of Line.

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WorldEndsWithMe
Friday, April 05, 2013 @ 8:39:33 AM

lol, it's a halfway decent WRPG but isn't comparable to Final Fantasy because they are too different.

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Teddie9
Friday, April 05, 2013 @ 10:44:58 AM

I really didn't like it, 7.5 at best.

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Raze22
Friday, April 05, 2013 @ 11:13:32 AM

do you have something against FF or something?

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Underdog15
Friday, April 05, 2013 @ 12:17:45 PM

It's been a long time since someone came here with an out-of-the-way troll post. I'm almost shocked to see one here.

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___________
Friday, April 05, 2013 @ 8:56:46 AM
Reply

ah, speak of the devil!
what a coincidence.......
just one question.
WTF did all the money go!?
75M from the state, assuming EA pitched in, plus the stories of curt putting in all his money as well.
so this game was VERY expensive to make.
so why does it feel like it was made for 10 and 2?

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Sandtech
Friday, April 05, 2013 @ 1:10:21 PM
Reply

Kingdom of Amalur is a very good game that gives you your money’s worth. It is a great pickup for any RPG fan. It is a shame that it has such a cloud hanging over it, but that is how it goes when the developer goes down. If you are a fan of the God of War and Elder Scrolls series, then put this game on your play list. You will thank me later;)

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ransomink
Saturday, April 06, 2013 @ 2:50:35 PM
Reply

Haven't bought and played the game but I did enjoy the demo. Story is a bit stale I heard, surprising, specially if Salvatore was at the helm. Combat was the most fun.

@Teddie9: So wait, you really didn't like the game but gave it a 7.5? I don't see how that's bad, 7.5 is an average score in my book. Does every game need to be an 8.8 or higher to become playable?

Last edited by ransomink on 4/6/2013 2:51:38 PM

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