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38 Studios Bankrupt; FBI Investigating

38 Studios has declared bankruptcy, a company spokesman tells The Providence Journal, and the paper also reports that the Rhode Island State Police inform them that state and federal authorities have launched an investigation into the videogame company founded by former major league pitcher Curt Schilling (thanks Nomaar). They don't have details on the nature of the inquiries, saying simply that Rhode Island State Police superintendent Col. Steven G. O'Donnell says that his agency, the FBI, the U.S. Attorney's office, and the Rhode Island attorney general "are working together to investigate activities that have recently come to light at 38 Studios." In 2010 38 Studios secured a now-infamous $75 million in loan guarantees from Rhode Island to relocate to the ocean state, and trouble repaying that loan preceded the layoff of their staff last month. Here's the statement from the company about its bankruptcy:

"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."

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31. Re: 38 Studios Bankrupt; FBI Investigating Jun 7, 2012, 18:53 Agent.X7
 
Teddy wrote on Jun 7, 2012, 18:30:
Agent.X7 wrote on Jun 7, 2012, 18:11:
There was no federal money involved. There was no taxpayer money involved until the genius governor caused the company to default on it's bank loan, which was co-signed by the state. This is the governor doing damage control, trying to make himself look good by having an investigation.

Gotta love fanboys passing the buck. Of course the solvency issues of 38 studios had -nothing- at all to do with them defaulting on the bank loan. It's that one person SAID something about their solvency issues. That must have been the problem.

They spent more money than they made on their first project, by a LONG shot, AND they were trying to fund development of an MMO when they had neither the experience, nor a recognized IP, nor the company reputation to back it up.

THEY caused their company to default by spending money stupidly and expecting huge sales on a title no one cared about, released in the same window as the kingpin of the genre. That they couldn't dupe any more 'investors' into handing them money so that they could burn it is no one's fault but their own.

Gotta love people who only read headlines and have no clue what they are talking about.
 
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