UPDATE 3: 38 Studios has officially declared for bankruptcy on Thursday, June 7th. Curt Schilling has officially announced he has given up searching for any additional capital in order to get the company back on its feet. The news has Rhode Island taxpayers in fear that they may be out tens of millions of dollars from the $75 million loan granted that brough 38 to the state to begin with.
UPDATE 2: It has been confirmed now that 38 Studios has laid off ALL of their employees. No statements have been made yet by Curt Schilling or anyone else in the company. Our condolences go out to those talented folks let go.
UPDATE: Rhode Island Governor Lincoln Chafee made a public statement that 38 Studios will no longer receive any taxpayer assistance to keep the company afloat asides from normal tax credits. Curt Schilling’s company was also able to pay the overdue $1.12 million after wiring the majority of the amount today.
38’s next title, an MMO under the name Project Copernicus, has also had its release date pushed from September to June 2013. The game is supposed to be set in the same mythos as Kingdoms of Amalur: Reckoning.
Looks like 38 Studios, founded by former baseball pitcher Curt Schilling, may be striking out. It has been recently reported that the company may be in financial trouble after a check for $1.12 million to the state of Rhode Island bounced.
The Governor of Rhode Island, Lincoln Chafee, revealed that talks were made with 38 Studios for a week before the check was hand delivered. This was supposed to be part of a repayment on a $75 million loan to bring the studio to the state. The check bounced however from lack of sufficient funds and payment is still due.
News of the company missing payroll also backs up the theory that it is dealing with money woes. Recent reports revealed that the company could not cover the paychecks for the 379 full time employees on staff. Rumors have also been spreading that all temporary and contract workers have been let go in a desperate way to shed costs.
Amidst all the controversy, Schilling made his first public comments through Facebook. He responds to the accusation that state funds were used to repay money poured into the company stating, “That is not true.”
“To all the prayers and well wishes to the team and families at 38, God Bless and thank you! We will find a way, and the strength, to endure.”
Cryptic messages and depressing news aside, the studio’s first and only game title, Kingdoms of Amalur: Reckoning, did pretty decent business selling 330,000 copies in its first month. Although these aren’t blockbuster numbers, it’s still good for a brand new IP. We will be sure to keep you posted on the state of 38 Studios as more info comes in.