38 Studios More Financial Trouble

Things are not looking good for Kingdoms of Amalur: Reckoning developer 38 Studios. After their game failed to meet sales expectations, despite being an interesting blend of Fable and The Elder Scrolls, the developer is now on the brink of becoming insolvent and has failed to make payments on their $75 Million loan.

Now this wouldn’t be too bad, if the loan in question hadn’t come from the state of Rhode Island, who had lured 38 Studios away from Boston in an effort to spurn on their economy. Unfortunately, Rhode Island taxpayers are most likely about to regret that move, as they might now be footing the bill on the loan.

On May 1st 38 failed to make a $1.125 Million payment on the loan, but only now has that detail come to light. If the loan does default, and Rhode Island is forced to turn to taxpayers to recoup the money lost, that would also turn 38 Studios over to the state. Curt Schilling obviously does not want that to happen, so he met with the Rhode Island Governor in a two-hour emergency meeting this week asking for some form of assistance.

At this point, 38 Studios’ head Curt Schilling just wants to get back to his team and work things out, but at the moment it’s not looking good. Rhode Island is still willing to strike an agreement with the developer, and that’s what the more recent meetings have been about.

At this point it looks highly unlikely that fans of the Kingdoms of Amalur universe will see the MMO that 38 Studios initially proposed back before Reckoning released. There’s a clear indication that both parties want to keep 38 Studios afloat, but if strides were made to ensure that happens you’d have to expect that some big changes are on the horizon.

Should Rhode Island help keep 38 Studios afloat so that we can see more of the Kingdoms of Amalur universe? Why do you think that Kingdoms of Amalur: Reckoning failed to make a splash with gamers?

Source: WPRI