38 Studios doesn't make payroll, can't pay state

Really Sad thing for all those people. I'm surprised the game sold so badly.

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Kingdoms of Amalur creators 38 Studios, who are based in Providence, Rhode Island, are apparently in talks with that state about their financial difficulties, as reported by this Providence newspaper. Superbly-named governor Lincoln Chafee said: “We’re always working to keep Rhode Island companies solvent, and that’s what we’re doing with 38 Studios.”

Reportedly, the game sold 410,000 copies across all formats – a figure which cast doubt on the future of the proposed MMO based on the world.

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Source: RPS

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38 Studios doesn't make payroll, can't pay state

38 Studios was unable to make payroll this week, but is in the process of making the $1.125 million payment that set off the company's crisis earlier this week. WPRI reports that a spokesperson for the Rhode Island Economic Development Corporation (RIEDC) did confirm that former Red Sox player Curt Schilling's video game company was unable to pay its employees.

A source tells Joystiq that beyond not making payroll, all temps and contractors at 38 Studios were let go this week.

At the same time, Governor Lincoln Chafee's office stated 38 Studios is in the process of making the overdue payment to the state. The head of the RIEDC, Keith Stokes, who approved the $75 million loan to 38 Studios in 2010, resigned late last night.

If 38 Studios does close, Rhode Island taxpayers will have to repay the $75 million bond (plus interest) through 2020, but they'll own the intellectual property of the developer, which would likely be sold at auction.

If the company does make the payment to the state, the next round will be owed in 2013. Of course, there won't be a 38 Studios much longer if it isn't paying employees.

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Source: Joystiq

I saw this, its really sad. Yes Amalur had its hick-ups but it is a brilliant new IP. This just goes to show publishers that new IPs dont make money so we will be seeing less new of them.

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Originally Posted by OmegaFenix

I saw this, its really sad. Yes Amalur had its hick-ups but it is a brilliant new IP. This just goes to show publishers that new IPs dont make money so we will be seeing less new of them.

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Problem is it was a new IP with zero original ideas. This is why I never bought it. But from reading various articles the problem seems to stem from the fact they they were already working on a KoA MMO.

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Originally Posted by OmegaFenix

I saw this, its really sad. Yes Amalur had its hick-ups but it is a brilliant new IP. This just goes to show publishers that new IPs dont make money so we will be seeing less new of them.

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Guess that's the end of CDProjectRed then or all those Indie games. I'd be frank and say that studios comes and go... this is nothing new. Only real enemy here is the so called mass market or mass sheep. Lets support another COD, another WOW, another MEx or another Assassins Creed. However it be a weak assumption that just because one studio is closing that all is lost. More and more brilliance will be coming from Indie and less from the "big wigs".

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Originally Posted by Isengard

Problem is it was a new IP with zero original ideas. This is why I never bought it. But from reading various articles the problem seems to stem from the fact they they were already working on a KoA MMO.

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I agree, it was very standard fantasy fare and the mechanics are all borrowed form other titles but it came together very well into a addictive little game & while it was never going to set the world ablaze it was a good first outing for the studio.
I also heard the rumor that Reckoning was intended to introduce players to the universe before the MMO hit.

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Originally Posted by Pr⊕phet

Guess that's the end of CDProjectRed then or all those Indie games. I'd be frank and say that studios comes and go... this is nothing new. Only real enemy here is the so called mass market or mass sheep. Lets support another COD, another WOW, another MEx or another Assassins Creed. However it be a weak assumption that just because one studio is closing that all is lost. More and more brilliance will be coming from Indie and less from the "big wigs".

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As always there are exceptions, CDProjekt is one of them. If you take into account that neither of the Witcher games where published by the big publishers but Atari, a once great now struggling publisher, then the pattern returns. A smaller publisher is more likely to take on a risky project than the big bad publishers. EA, for all its faults, took a change on KoA:R for which I commend them.

Also I dont mean to say because 38 failed it is a the End of the World, like you said this is northing new, but its not the first, or last, new IP to under perform of late while the big AAA machine chugs out another clone that selling Billions.

It's sad to see something like that showed a lot of promise even if it wasn't amazing, like KoA, do poorly and then games which seem crap, like RE:Operation Raccoon city, sell 2 million copies without batting an eyelid.

It's just more evidence that in the AAA space branding counts more than innovation or quality. You can throw CDProject around all you want but the fact of the matter is Witcher 2 only sold around 1.5M (PC) in a year (iirc was their last stated figures) and RE: ORC sold 2M in 3months. So why bother trying to make a good game when you can just make a mediocre one with a good name.

Sure sure, it's not all doom and gloom, I just think it sucks. :(

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Originally Posted by MOnk

It's sad to see something like that showed a lot of promise even if it wasn't amazing, like KoA, do poorly and then games which seem crap, like RE:Operation Raccoon city, sell 2 million copies without batting an eyelid.

It's just more evidence that in the AAA space branding counts more than innovation or quality. You can throw CDProject around all you want but the fact of the matter is Witcher 2 only sold around 1.5M (PC) in a year (iirc was their last stated figures) and RE: ORC sold 2M in 3months. So why bother trying to make a good game when you can just make a mediocre one with a good name.

Sure sure, it's not all doom and gloom, I just think it sucks. :(

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If people support kak then kak will be made. I've made this point in my reply, selectively missed ?

Also the problem with the game was its a bit expensive at $60 for someone new on the block sure if it was cod or bf people would have bought it in truck loads.

it is sad, but it takes money to make money....

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Originally Posted by CrouxL

it is sad, but it takes money to make money....

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Originally Posted by Crzwaco

Also the problem with the game was its a bit expensive at $60 for someone new on the block sure if it was cod or bf people would have bought it in truck loads.

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Please tell is what you want to pay for a new title. Maybe it should be split into Indie, so-so and AAA. I'm quite interested in what people thing they should pay for something :)

...However, remember that yesteryears R10 isn't today's R10. Money looses value over time and then obviously things will cost more.