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38 Studios Closed?

38 Studios laid off its entire workforce according to an unconfirmed report on WPRI.com where they have an email purportedly sent to the company's staff, which they say consisted of 379 employees a of March 15. The Verge adds they've been informed by "a source familiar with the company" that 38 Studios also closed both its Rhode Island headquarters and its subsidiary studio Big Huge Games (thanks nin). They also note there is a semi-confirmation of this in a tweet from Colin Campbell, lead world designer at Big Huge Games: "Big Huge Games was home for my wife and me for our adult lives so far. I'll miss it terribly, but so proud. Good night and good luck." The Verge also quotes Governor of Rhode Island Lincoln Chafee attributing the closure to Kingdoms of Amalur: Reckoning, saying the RPG "failed." They note that the game sold approximately 1.2 million copies in 90 days and Chafee says experts told him it needed to sell three million copies to break even. In 2010 Rhode Island loaned 38 Studios $75 million.

Financial troubles at the developer founded by former major league baseball pitcher Curt Schilling surfaced less than two weeks ago, but after some drama involving a bounced loan payment check and allegations of a missed payroll, things seemed to be on the rise, with word that the loan payment cleared and that the company's MMORPG codenamed Project Copernicus was expected in a year. In an interesting side note, Rock, Paper, Shotgun points out the Rhode Island Economic Development Corporation has posted 38 Studios Public Documents with all the details on its financial dealing with the company.

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93 Replies. 5 pages. Viewing page 5.
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13. Re: 38 Studios Closed? May 24, 2012, 20:16 sauron
 
Heh, we should institute a new rule for incoming Presidents. At the inauguration ceremony, they have to demonstrate they can find their own ass with both hands.

Bush junior would definitely have failed that test. Senior, maybe not. Clinton definitely would have passed but would have failed the supplementary 'don't f*** your interns' test. The gipper? Hmmm.

Would Obama pass it? Not sure, we'll have a better idea after the election, or maybe in 4 years' time.

 
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Kittens!
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12. Re: 38 Studios Closed? May 24, 2012, 20:15 PropheT
 
Political discussion aside, this story seems to be popping up elsewhere as well.

http://www.msnbc.msn.com/id/47558510/ns/business-us_business/#.T77OFNVYt8E

 
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11. Re: 38 Studios Closed? May 24, 2012, 20:14 Mashiki Amiketo
 
Beelzebud wrote on May 24, 2012, 20:09:

Step outside the bubble.
Wait. How does one person rack up $5T in debt and have the lowest spending in 60 years?

Edit: Oh wait, I get it. It's because you can turn around and "massage" the numbers, and then apply the difference by inflation. Oh how silly me.
 
--
"For every human problem,
there is a neat, simple solution;
and it is always wrong."
--H.L. Mencken
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10. Re: 38 Studios Closed? May 24, 2012, 20:09 Beelzebud
 
RollinThundr wrote on May 24, 2012, 19:58:
Wildone wrote on May 24, 2012, 19:26:
Thats wishful thinking. I hear Obama's job creation plan has opened a new chopstick making factory in Alabama (not joking) so thats viable.

Obama has spent more in 3 and a half years than Bush did in his entire two terms, refused to cut enough so that the US credit rating would be lowered, and consistently puts his socialism loving cronies in the UN above US citizens. Yeah I really can't wait til all his obamites vote him in again so he can finish what he started in turning the US into a 3rd world liberal utopian welfare state. It'll be so awesome!

Are there any sane Republicans left? You guys all sound like conspiracy theorists at this point. Oh and by the way, Obama's spending is the lowest rate in 60 years. Our debt is leftovers from the Bush administration.

Obama spending lowest in 60 years

Step outside the bubble.
 
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9. Re: 38 Studios Closed? May 24, 2012, 20:09 sauron
 
RollinThundr wrote on May 24, 2012, 19:58:
Wildone wrote on May 24, 2012, 19:26:
Thats wishful thinking. I hear Obama's job creation plan has opened a new chopstick making factory in Alabama (not joking) so thats viable.

Obama has spent more in 3 and a half years than Bush did in his entire two terms, refused to cut enough so that the US credit rating would be lowered, and consistently puts his socialism loving cronies in the UN above US citizens. Yeah I really can't wait til all his obamites vote him in again so he can finish what he started in turning the US into a 3rd world liberal utopian welfare state. It'll be so awesome!

Alternatively, we can go back to GW Bush. Yay?
 
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Kittens!
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8. Re: 38 Studios Closed? May 24, 2012, 19:58 RollinThundr
 
Wildone wrote on May 24, 2012, 19:26:
Thats wishful thinking. I hear Obama's job creation plan has opened a new chopstick making factory in Alabama (not joking) so thats viable.

Obama has spent more in 3 and a half years than Bush did in his entire two terms, refused to cut enough so that the US credit rating would be lowered, and consistently puts his socialism loving cronies in the UN above US citizens. Yeah I really can't wait til all his obamites vote him in again so he can finish what he started in turning the US into a 3rd world liberal utopian welfare state. It'll be so awesome!
 
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7. Re: 38 Studios Closed? May 24, 2012, 19:53 mixma242
 
A state with 1mil residents guaranteeing a bond of $75mil. So every man, woman, and child in the state gets to 'contribute' $75 to this fiasco. Ouch.

I hope every state resident at least get's a free copy of Kingdoms of Amalur: Reckoning.
 
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6. Re: 38 Studios Closed? May 24, 2012, 19:37 SimplyMonk
 
That was a very lofty goal. Most of the big name titles like "Mass Effect 2", "Prototype" and "Army of Two" barely did 1.2M in the first 90 days and I'm sure that wasn't their break even point. It did decently well, to be honest, but if their break even point was that high they really should of focused on bringing their costs down.

Then again, that is just my two cents and I'm not expert in game development or financing in the least. Just looking at what their target was seems very unrealistic for what they were pushing.
 
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5. Re: 38 Studios Closed? May 24, 2012, 19:36 Hump
 
This state is notorious for its politicians which Alan Dershowitz has called "The most corrupt in the country". The State has a checkered past with rumored Mob involvement in municipal projects (a running joke here is you'll never see a public construction project being done by a company that doesnt have a vowel in the owners last name). Appointments to positions and elected officials look at their positions as an opportunity to enrich themselves and friends. For example, "The Providence Place Mall" was pitched as a high end mall with expensive boutique outlets, gourmet dining (Think Copely Place in Boston) etc. Studies showed it would be untenable financially since the number of high income residents who could afford to shop there were'nt enough to support the place. The study results landed on deaf ears, bonds were floated, deals made without public input. It is now allowing in "Dollar Tree" and Trading card shops....ie; anyone who is willing to pay the rent.

38 Studios was a similar deal. A few politicos begged the company to locate here with tax breaks and funding. It was put through with out a single bit of input from taxpayers. Not a single politician is claiming responsibility for the wrongheaded deal to begin with.

This was seen by many of us before the papers were even signed for the Studios to move in. As usual we get to foot the bill for some scumbags who feel the state is their personal Kingdom
 
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"Both the “left” and the “right” pretend they have the answer, but they are mere flippers on the same thalidomide baby, and the truth is that neither side has a clue."

- Jim Goad
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4. Re: 38 Studios Closed? May 24, 2012, 19:31 Steele Johnson
 
That's too bad. I'm having a lot of fun with the game. I believe the failure was combo of piss poor management and biting off more than they could chew. I really don't believe that a game startup should be taking out a 75 mil loan and hiring 400 people for the very first game. Doesn't make any sense.  
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3. Re: 38 Studios Closed? May 24, 2012, 19:26 Wildone
 
Thats wishful thinking. I hear Obama's job creation plan has opened a new chopstick making factory in Alabama (not joking) so thats viable.  
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2. Re: 38 Studios Closed? May 24, 2012, 19:15 Fantaz
 
1.2 million copies is a fail? 3 million needed to break even? How were they expecting that?  
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1. Re: 38 Studios Closed? May 24, 2012, 19:10 NKD
 
Hope everyone finds a new job quickly! Good luck to any 38 Studios employees who might read this.  
Avatar 43041
 
If you don't like where gaming is heading, stop giving your money to the people who are taking it in that direction.
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