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38 Studios knew $75M loan wasn't enough to finish Project Copernicus

Justin Olivetti — Tue, 20 May 2014 17:30:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

Emails surfacing from the legal fracas concerning 38 Studios and its loan from Rhode Island indicate that the studio knew the loan was not nearly enough to fully fund the game but decided to hide that from outsiders.

38 Studios Vice Chairman Thomas Zaccagnino allegedly sent one the damning emails, urging a few studio execs to remain mum on the financial situation: "I really do not think we should highlight the fact that we might be under-capitalized... [it] won't go over well with the staff or board."

The email was in response to CEO Jen MacLean, who wrote that she was concerned that the state wasn't delivering the full $75 million from the agreement and that the project would fall short of funding because of this.

One lawyer involved in both the deal and the lawsuit said that the state knew that the deal wasn't enough to fully fund: "The [EDC] Board was acutely aware that the capital needs of 38 Studios where [sic] in excess of $125MM as acknowledged in the 2010 EDC Inducement Resolution[.] The Board also knew that the net proceeds of the EDC Loan would be less than $75MM."

38 Studios knew $75M loan wasn't enough to finish Project Copernicus originally appeared on Massively on Tue, 20 May 2014 17:30:00 EST. Please see our terms for use of feeds.

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Rhode Island Governor signs 38 Studios settlement bill

Justin Olivetti — Fri, 14 Feb 2014 16:30:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

Following successful votes in the Rhode Island Senate and House of Representatives, a bill designed to help settle the 38 Studios fiasco was signed into law by Governor Lincoln Chafee yesterday.

Lawmakers hope that the bill will encourage settlements by shielding defendants from further litigation. Involved parties say that this bill will pave the way to recover as much as possible of the $90 million that Rhode Island is responsible for paying following the defaulted loan to 38 Studios.

Rhode Island Governor signs 38 Studios settlement bill originally appeared on Massively on Fri, 14 Feb 2014 16:30:00 EST. Please see our terms for use of feeds.

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SOE's John Smedley blames Rhode Island government for 38 Studios closure

Eliot Lefebvre — Tue, 11 Feb 2014 10:30:00 EST

Filed under: MMO Industry, News Items, Miscellaneous

So who's at fault for the 38 Studios debacle? It's a question that's been thrown around a lot with no clear answers. But John Smedley of Sony Online Entertainment thinks that it's a pretty clear case of the state of Rhode Island getting involved in something it shouldn't have and then backing out at the worst possible time. He stated on Twitter that having seen the game himself, it had potential and it could have been something if it had actually made it to release.

Smedley agrees with Governor Lincoln Chafee that the funding deal was a bad idea and should never have taken place, but once it had taken place, it was in the state's best interest to aid the studio rather than letting it fail. Chafee's comments and naysaying for the project doomed the chances of the game getting any additional funding, ultimately shuttering the studio altogether. Despite that, Smedley also notes that in the long run it was a bad idea that should never have taken place and that SOE was approached for funding on the game and declined, which he suggests should have been indication enough for Rhode Island not to make the deal.

[We've updated the title to make utterly clear that of course we (and Smed) were talking about the government of Rhode Island, not some random people in Rhode Island, many of whom obviously did not vote for said government. After the break, we've also quoted the relevant tweets, among them the one in which Smed declares that but for Chafee's actions, we'd be playing the game right now.]

Continue reading SOE's John Smedley blames Rhode Island government for 38 Studios closure

SOE's John Smedley blames Rhode Island government for 38 Studios closure originally appeared on Massively on Tue, 11 Feb 2014 10:30:00 EST. Please see our terms for use of feeds.

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Rhode Island House to vote on out-of-court settlements for 38 Studios fiasco

Mike Foster — Thu, 06 Feb 2014 17:30:00 EST

Filed under: Fantasy, MMO Industry, News Items, Legal, Miscellaneous

After a successful vote yesterday from the Rhode Island House Judiciary Committee, the full state House of Representatives is set to consider legislation next week that encourages out-of-court settlements in Rhode Island Commerce Corp.'s lawsuit against 38 Studios and its founder, Curt Schilling.

The bill, which won unanimous support in the House Judiciary Committee and has already been passed by the Senate, is designed to protect defendants who settle in this case from lawsuits levied by co-defendants found liable for damages. Fallout from the collapse of the Kingdoms of Amalur: Reckoning studio has left Rhode Island stiffed on a bill that totals out to roughly $90 million; The attorney for the RICC believes this bill will provide for an increase in potentially recovered funds.

In related but sad news, Schilling has revealed to ESPN that he was recently diagnosed with cancer. His statement expressed hope, with Schilling saying, "My father left me with a saying that I've carried my entire life and tried to pass on to our kids: 'Tough times don't last. Tough people do."

Rhode Island House to vote on out-of-court settlements for 38 Studios fiasco originally appeared on Massively on Thu, 06 Feb 2014 17:30:00 EST. Please see our terms for use of feeds.

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Rhode Island senate passes 38 Studios legislation

Justin Olivetti — Fri, 31 Jan 2014 16:00:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

A major hurdle in paving over the bad feelings, poor decisions, and millions of dollars in unpaid loans that 38 Studios caused when it defaulted two years ago has been crossed, as Rhode Island's Senate has approved legislation to settle the affair out of court.

The Senate unanimously passed a bill to shield from future lawsuits any party that settles with Rhode Island Commerce Corp. The RICC, formerly the Economic Development Corp., has been trying to figure out a way to recoup as much of the $90 million lost through former 38 Studios deals as possible, and the attorney for the state says that this legislation will increase any future recovery of those funds.

The Rhode Island House of Representatives has to consider and vote on a similar bill for this to proceed. Lawyers say that the longer this case goes without a settlement, the larger the legal bills will be, which will diminish those funds the state does recover.

Rhode Island senate passes 38 Studios legislation originally appeared on Massively on Fri, 31 Jan 2014 16:00:00 EST. Please see our terms for use of feeds.

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Legislation may pave a path for 38 Studios case settlement

Justin Olivetti — Fri, 24 Jan 2014 15:00:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

Amazingly enough, the 38 Studios saga could be wrapped up soon if lawyers and the Rhode Island government agree on a path out of the legal swamp.

The Associated Press is reporting that efforts are being made to settle the 38 Studios lawsuit out of the courts. Rhode Island's lawyer is encouraging the state senate to pass legislation allowing both sides to come to a settlement, as the remaining 38 Studios assets and resources are "being eaten up very rapidly."

The state is suing Curt Schilling and 13 others over the $75 million loan that 38 Studios defaulted on back in 2012, looking for repayment plus additional compensation for damages. If the legislation passes and a settlement is reached, then the defendants would be protected from any further claims for compensation.

Legislation may pave a path for 38 Studios case settlement originally appeared on Massively on Fri, 24 Jan 2014 15:00:00 EST. Please see our terms for use of feeds.

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Legislation introduced to resolve 38 Studios lawsuit

Eliot Lefebvre — Thu, 09 Jan 2014 18:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

The ongoing saga of 38 Studios and the state of Rhode Island continued on Wednesday courtesy of Governor Lincoln Chafee introducing a new piece of legislation to the state assembly. Specifically targeting the ongoing lawsuit, the legislation would be used as an inducement for the former company to settle with the state out of court rather than go through the lengthy process of a trial by ensuring that the named defendants will not face further litigation on the same causes.

In more conversational terms, the bill states that if the defendants in the lawsuit settle out of court, they cannot be sued again in Rhode Island courts by other people over the closure of the company or other similar charges. Whether or not this will provide sufficient incentive for Curt Schilling and the other 13 defendants named in the lawsuit to simply settle remains to be seen.

Legislation introduced to resolve 38 Studios lawsuit originally appeared on Massively on Thu, 09 Jan 2014 18:00:00 EST. Please see our terms for use of feeds.

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Project Copernicus remains unsold at auction

Eliot Lefebvre — Fri, 13 Dec 2013 14:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

Every game has its fans. Project Copernicus never launched and was never really much more than a twinkle in the eye, and yet someone out there really liked the game. Someone out there really loved Kingdoms of Amalur and was really hopeful that the 38 Studios property auction would give Project Copernicus a new home. Someone was still excited despite everything that's happened since the game was first announced. Let's call her Kate.

Today's news is going to hit Kate really hard; the auction came and went, and no one was interested enough in Project Copernicus to make an "acceptable" offer. Richard Land, who handled the asset auction, has stated that he will continue to try to work privately with interested buyers regarding the assets that were not purchased, but it's not a good sign that none of the potential buyers wanted to pick up the title. Sorry, Kate. Gross proceeds from the auction came to $320,000, for the record.

Project Copernicus remains unsold at auction originally appeared on Massively on Fri, 13 Dec 2013 14:00:00 EST. Please see our terms for use of feeds.

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38 Studios asset auction may be delayed due to high demand

Eliot Lefebvre — Wed, 06 Nov 2013 16:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

When companies die, their assets are sold to make back whatever money can be recovered. That's normal. But you wouldn't expect a great deal of interest in the intellectual property of a company that had worked on only two games and actually released just one of them. Apparently that expectation would be wrong; Richard Land, the attorney in charge of selling off 38 Studios' holdings, has requested that the IP auction be delayed due to greater interest than expected.

For those of you who had forgotten the details, here's a recap: The sale of these assets are part of an attempt by the state of Rhode Island to recover some of the enormous losses when 38 Studios went bankrupt following a $75 million loan from the state. The auction was originally scheduled to take place November 13th to the 14th. What parties are interested in the IP remains to be seen, as do the offers that have supposedly been put on the table.

38 Studios asset auction may be delayed due to high demand originally appeared on Massively on Wed, 06 Nov 2013 16:00:00 EST. Please see our terms for use of feeds.

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38 Studios loan under SEC investigation

Mike Foster — Wed, 11 Sep 2013 18:00:00 EST

Filed under: Fantasy, MMO Industry, News Items, Consoles, Legal, Miscellaneous

It seems as though we can't go more than a few weeks without hearing about some new complication related to the collapse of 38 Studios and the financial catastrophe it left in its wake. This week's news comes in the form of an SEC probe into the $75 million in loan guarantees offered to the studio by the Rhode Island Economic Development Corporation.

The RIEDC has secured the services of a law firm to help it handle the SEC's investigation. Further details are sparse, as the RIEDC has offered only that it "doesn't discuss ongoing matters related to 38 Studios and maintains a level of confidentiality as requested by the SEC." Strangely, the SEC investigation, which launched in early 2012, was not mentioned to investors when Rhode Island published financial documents related to a bond transaction in April of that year. According to the treasurer's spokesperson, the state's treasury was not aware of the probe at that time.

The RIEDC is currently involved in a lawsuit against studio head Curt Schilling and former RIEDC members responsible for the 38 Studios deal.

38 Studios loan under SEC investigation originally appeared on Massively on Wed, 11 Sep 2013 18:00:00 EST. Please see our terms for use of feeds.

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Lawsuit against Curt Schilling and 38 Studios allowed to proceed

Brianna Royce — Fri, 30 Aug 2013 19:00:00 EST

Filed under: Events (Real-World), MMO Industry, News Items, Legal, Miscellaneous

According to a report in the Boston Globe, a Rhode Island judge has ruled that the state's lawsuit against baseball star Curt Schilling and his merry band of 38 Studios execs will continue, in spite of the defense's movement to dismiss the case outright.

The suit, which began in May, was filed by Rhode Island's economic development agency, which alleges that 38 Studios' representatives knew the studio was financially unsound and effectively defrauded the state when it accepted its $75 million state loan three years ago. The studio was working on MMO Project Copernicus before it imploded and defaulted on that loan. Schilling has rejected those accusations and previously called Governor Lincoln Chafee a "dunce of epic proportions" in a daring bout of real-world smacktalk.

So what's in it for Rhode Island? Aside from saving face, nothing much, just the reclamation of a cool $75 million in bonds it doesn't want to absorb plus triple in damages from Schilling and other executives. But let's not get ahead of ourselves, Rhode Island; the judge did rule that RI can't sue for the whole package just yet.

Lawsuit against Curt Schilling and 38 Studios allowed to proceed originally appeared on Massively on Fri, 30 Aug 2013 19:00:00 EST. Please see our terms for use of feeds.

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Curt Schilling discusses life after 38 Studios

Eliot Lefebvre — Tue, 13 Aug 2013 13:30:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

There's not a lot of love in the gaming world for Curt Schilling. The closure of 38 Studios that left the state of Rhode Island with a $75 million debt and hundreds of people out of jobs has colored perceptions. A recent piece from the Boston Globe takes a look at Schilling with a slightly gentler approach, discussing the heart attack he suffered eight months prior to the studio's closure and the stress he's felt over the failure.

Schilling once again puts the blame for what happened at the feet of Governor Lincoln Chafee, who he claims failed to help 38 Studios when assistance was required. The article goes into more depth discussing the many assets from Schilling's baseball career that were auctioned off to pay damages, as well as his retirement from public life in favor of coaching his daughter's softball team. Those still interested in the fallout can take a look at the full article for more perspectives from both Schilling and his wife.

Curt Schilling discusses life after 38 Studios originally appeared on Massively on Tue, 13 Aug 2013 13:30:00 EST. Please see our terms for use of feeds.

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Rhode Island set to pay 38 Studios bonds. Probably.

Mike Foster — Wed, 19 Jun 2013 14:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

38 Studios collapsed upon itself in a heap of flaming disaster last year, and Rhode Island taxpayers ended up stuck with the bill. The state used a $75 million loan, acquired through the sale of taxable bonds, to convince 38 to operate within its borders, and RI is now on the hook for around $89 million after the studio declared bankruptcy.

Some state lawmakers in Rhode Island flirted with the idea of "walking away" from the debt, which is apparently a privilege afforded to a government and not its citizens. However, the state's House Finance Committee has approved a budget that includes, at the very least, making an interest payment of $2.5 million on the debt in May 2014. If Rhode Island is running off the plan it talked about last month, this first payment will be followed by yearly payments of $12.5 million until the debt is repaid.

The budget hasn't passed; it still needs to get through the state's House and Senate. Future interest payments will also have to be approved by the state legislature.

Rhode Island set to pay 38 Studios bonds. Probably. originally appeared on Massively on Wed, 19 Jun 2013 14:00:00 EST. Please see our terms for use of feeds.

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Rhode Island explores ditching 38 Studios debt

MJ Guthrie — Thu, 30 May 2013 11:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

To pay back or not to back, that is the question that Rhode Island is exploring after being saddled with $112.6 million in combined debt and interest when 38 Studios went kaput, taking Project Copernicus with it. RI governor Lincoln Chafee still believes that lenders should get their due according to his spokeswoman Christine Hunsinger, but the administration is gathering data to explore the cost of not paying back to get an understanding of "the ramifications of what that decision would be."

Currently the state is planning to pay investors back over the course of 10 years, with a $2.5 million payment the first year and subsequent installments of $12.5 million thereafter.

Rhode Island explores ditching 38 Studios debt originally appeared on Massively on Thu, 30 May 2013 11:00:00 EST. Please see our terms for use of feeds.

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38 Studios vs. State of Rhode Island court case begins

Eliot Lefebvre — Wed, 22 May 2013 18:30:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

We'll never see Project Copernicus come to light, and for some people that's the last that needs to be said about 38 Studios. For the state of Rhode Island, however, there's quite a bit more at stake, with the state alleging that 38 Studios tried to hide its financial condition and essentially defrauded the taxpayers of Rhode Island. Opening arguments have been heard today for the case, with the 14 individual defendants seeking to have the case dismissed as completely spurious.

When 38 Studios folded, that left Rhode Island in the hole for a $75 million loan. The lawsuit is seeking restitution from Curt Schilling and 13 other individuals, including former members of the Rhode Island Economic Development Corp that originally supported the loan. According to the EDC's lawyers, substantial evidence exists that this loan was based upon intentional misdirection on the part of upper management, although the defense claims these allegations are ridiculous. At this point, it's up to the courts who's in the right.

38 Studios vs. State of Rhode Island court case begins originally appeared on Massively on Wed, 22 May 2013 18:30:00 EST. Please see our terms for use of feeds.

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Rhode Island selling 38 Studios' game assets

Justin Olivetti — Mon, 20 May 2013 14:00:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

Do you have a few million on you and a desire to preserve some gaming history? Then pick up the phone and call Rhode Island, as the state is getting ready to sell 38 Studios' assets, including its games.

The state is looking to recoup some of it $130 million debt that it fell into once 38 Studios went belly-up. One of Rhode Island's lawyers says there "is interest" in the studio's assets, including concept art, design documents, and computer software. The sale of 38 Studios' IP includes the Amalur franchise, which encompassed the Project Copernicus MMO.

The state is also set to begin a lawsuit this week against former 38 Studios execs, including founder Curt Schilling. The suit claims that the executives did not inform the state when they knew that the studio would have a hard time keeping afloat financially. Schilling has asked the judge to dismiss the suit.

Rhode Island selling 38 Studios' game assets originally appeared on Massively on Mon, 20 May 2013 14:00:00 EST. Please see our terms for use of feeds.

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Rhode Island attempting to default on 38 Studios' debt

Justin Olivetti — Thu, 11 Apr 2013 16:30:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

The AP is reporting that Rhode Island is attempting to default on the debt it owes for 38 Studios' $75 million loan and subsequent bankruptcy. The state has a proposal before lawmakers that would keep it from having to make any payments to bond holders.

Supporters of the move to default say that the insurance company will compensate bond holders, while the EDC, which approved the loan, says that defaulting will hurt future project and bond ratings. One lawmaker and default proponent, Rep. Charlene Lima, said that the 38 Studios fiasco harmed the reputation of the state and constricted its future economic development.

The proposal is being opposed by Governor Lincoln Chafee, who wants to see the debt repaid.

Rhode Island attempting to default on 38 Studios' debt originally appeared on Massively on Thu, 11 Apr 2013 16:30:00 EST. Please see our terms for use of feeds.

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38 Studios may have 'actively masked' its financial hardship

Elisabeth Cardy — Fri, 05 Apr 2013 17:00:00 EST

Filed under: Real-Life, Business Models, MMO Industry, News Items, Miscellaneous

Just when you thought the world might let the wound where 38 Studios and Kingdoms of Amalur were ripped from your heart heal over, along comes some new drama.

Max Wistow, the lawyer for the Rhode Island Economic Development Corporation, filed documents on behalf of the state claiming that 38 Studios needed more than $75 million in loan guarantees before the company ever moved to Rhode Island. He argues that folks at 38 Studios knew that the funds they were receiving from the state would be insufficient. The company netted about $50 million from an EDC bond sale, and Wistow is claiming "crushing evidence" that 38 Studios actively masked its financial shortfall.

38 Studios may have 'actively masked' its financial hardship originally appeared on Massively on Fri, 05 Apr 2013 17:00:00 EST. Please see our terms for use of feeds.

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Curt Schilling asks judge to dismiss 38 Studios fraud lawsuit

Eliot Lefebvre — Mon, 04 Mar 2013 17:30:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

Let's assume for a moment that you're Curt Schilling, formerly of the Red Sox and formerly of the now-defunct 38 Studios. You're facing a massive lawsuit for fraud regarding a $75 million loan from the state of Rhode Island. What do you do? It appears that Mr. Schilling's first approach is to ask the judge on the case to throw out the case entirely, claiming that the basis of the case is itself fraudulent.

The crux of the lawsuit is the state's claim that Schilling and the 38 Studios board of directors willfully obfuscated the company's status from state lawmakers. Schilling has put forth that 38 Studios fully disclosed its status to the state investors on numerous occasion, providing them with an accurate picture of the company's financial situation. Due to this disclosure the allegations of fraud and obfuscation are simply not possible, hence the request for dismissal. Schilling goes on to claim that the entire suit is politically motivated and that the company's failure is chiefly due to Governor Lincoln Chafee not doing enough to save 38 Studios from bankruptcy.

Curt Schilling asks judge to dismiss 38 Studios fraud lawsuit originally appeared on Massively on Mon, 04 Mar 2013 17:30:00 EST. Please see our terms for use of feeds.

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A video retrospective on 38 Studios discusses 'star-struck legislators'

Eliot Lefebvre — Thu, 03 Jan 2013 18:00:00 EST

Filed under: Video, MMO Industry, News Items, Legal, Miscellaneous

The sun has set on 38 Studios, but there's still a lot of people eager to analyze and dissect the company's rise and sharp decline. As a whole, it's been looked at and analyzed extensively from the gaming side, but the other factors that went into the studio's enormous state loan and subsequent burnout are examined more closely in a new video. This isn't about whether or not Project Copernicus would have been any good; this is about simple business and political pressures that doomed the project from the start.

Curt Schilling started 38 Studios at the end of his baseball career, but it was a well-known fact that his attempts to court venture capitalists were unsuccessful. The video goes into depth regarding the political climate that encouraged Rhode Island legislators to sign the historic and ill-advised loan, as well as the factors leading to the company's ultimate demise. If you're interested in a broader view now that the smoke has cleared, take a look at the full video past the cut.

Continue reading A video retrospective on 38 Studios discusses 'star-struck legislators'

A video retrospective on 38 Studios discusses 'star-struck legislators' originally appeared on Massively on Thu, 03 Jan 2013 18:00:00 EST. Please see our terms for use of feeds.

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Rhode Island EDC sues Curt Schilling and more over 38 Studios loan

Brendan Drain — Thu, 01 Nov 2012 14:00:00 EST

Filed under: Video, Business Models, Events (Real-World), MMO Industry, News Items, Legal

Back in May, Project Copernicus developer 38 Studios became embroiled in the controversy of the year when the studio officially shut down and fired all 379 of its employees. The story quickly turned political as the studio had been granted a loan of $75m US by the state of Rhode Island and it became known that the tax-paying public could be hit for an estimated $150.7m US due to the studio's closure.

The story of mishandled taxpayer money has played a big part in the politics of Rhode Island. Today that story developed further as the Rhode Island Economic Development Corporation (EDC), which granted the original loan and may therefore be responsible for the public debt, filed a lawsuit against the people who created the deal. The defendants named in the case include 38 Studios founder Curt Schilling, CEO Jennifer McLean, former EDC executive director Keith Stokes, Wells Fargo Securities and even Barclays Capital. Rhode Island Governor Lincoln Chafee released a public statement about the lawsuit on YouTube.

Continue reading Rhode Island EDC sues Curt Schilling and more over 38 Studios loan

Rhode Island EDC sues Curt Schilling and more over 38 Studios loan originally appeared on Massively on Thu, 01 Nov 2012 14:00:00 EST. Please see our terms for use of feeds.

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38 Studios auctions recoup $830k of $150.7M owed

Shawn Schuster — Fri, 26 Oct 2012 17:00:00 EST

Filed under: Fantasy, Economy, MMO Industry

Earlier this week, 38 Studios' former headquarters in Providence, Rhode Island played host to a public auction that brought in approximately $650,000 through over 1,000 bidders. If you combine this number with last week's auction at the studio's Big Huge Games division, the total recouped through auctions came to $830,000. This is unfortunately only a fraction of the estimated $150.7 million owed in bankruptcy filings, but the best part hasn't been put up on the block yet.

The Kingdoms of Amalur intellectual property is said to be "sold in a negotiated transaction over the next three to six months," according to Joystiq. The total from that sale doesn't expect to cover the entire amount owed, which leaves the remainder up to the Rhode Island taxpayers.

38 Studios auctions recoup $830k of $150.7M owed originally appeared on Massively on Fri, 26 Oct 2012 17:00:00 EST. Please see our terms for use of feeds.

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Curt Schilling might pay back debt by selling baseball memorabilia

Elisabeth Cardy — Thu, 04 Oct 2012 21:00:00 EST

Filed under: Real-Life, Business Models, Events (Real-World), MMO Industry, News Items

Curt Schilling is most recently famous for failing spectacularly at using loans from Rhode Island and investors to create a Kingdoms of Amalur MMO. As the founder of the now-bankrupt 38 studios and someone who personally guaranteed some $12 million worth of loans related to the studio, Schilling's lucky that he was famous for other stuff before stepping into game development.

For example, Schilling was one of the best pitchers in American League baseball in 2004 and played for the Boston Red Sox, the only team in MLB history to win a seven-game series after losing the first three games. A bloody sock that he wore during that series is listed (along with World War II-era memorabilia, one of Lou Gehrig's baseball caps, his home, and a stake in a private equity firm) in a collateral filing.

Curt Schilling might pay back debt by selling baseball memorabilia originally appeared on Massively on Thu, 04 Oct 2012 21:00:00 EST. Please see our terms for use of feeds.

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R.A. Salvatore details the lack of death in Project Copernicus

Eliot Lefebvre — Wed, 12 Sep 2012 19:00:00 EST

Filed under: Fantasy, Game Mechanics, Lore, News Items

"To be or not to be" is not a question asked in most MMOs. Characters don't die permanently, after all. But Project Copernicus wouldn't have waved that fact off as an irrelevant necessity of game mechanics. No, according to R.A. Salvatore, the game world would have explored the meaning behind a world wherein no one truly dies and everyone is functionally immortal.

Players who enjoyed Kingdoms of Amalur: Reckoning will recall that the game opens with the player character returning from death thanks to the Well of Souls. In Project Copernicus, the Well of Souls would have been active not just for one individual but for everyone in the world. Returning from death would be something that happens not just to players but to every part of the world.

It's not hard to imagine the ways in which a world would seem different if death was no longer something to be feared or avoided. Salvatore laments that the concept is unlikely to see execution now, even with buyers looking to purchase the 38 Studios assets from the state of Rhode Island.

R.A. Salvatore details the lack of death in Project Copernicus originally appeared on Massively on Wed, 12 Sep 2012 19:00:00 EST. Please see our terms for use of feeds.

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38 Studios loan could impact state elections

Justin Olivetti — Tue, 11 Sep 2012 15:30:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

If you've started to forget about the saga of 38 Studios' collapse, rest assured that Rhode Island politicians certainly have not. With the election coming soon, many in the state are scrambling to offset the blame for the $75 million loan decision and protect their positions. The Associated Press is reporting that it's being seen as a "liability" among candidates.

One candidate, Mark Binder, addressed the continued furor over the issue: "If I don't bring it up, other people bring it up. Everyone is infuriated. There's this game going on in Rhode Island right now called 'pass the blame on 38 Studios.'"

While many of those directly responsible for voting the deal through have since resigned from their positions, the search to pin the fiasco on one of the state's leaders is still underway. Another 2012 candidate, Laura Pisaturo, said that the public is demanding more answers: "People read in the paper about 38 Studios and think 'we elect these people and expect they will lead and ask tough questions.'"

38 Studios loan could impact state elections originally appeared on Massively on Tue, 11 Sep 2012 15:30:00 EST. Please see our terms for use of feeds.

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Rhode Island possesses 38 Studios' games, looks to sell

Justin Olivetti — Thu, 09 Aug 2012 09:00:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

While 38 Studios is finished, its employees laid off, and its projects canceled, there's really only one thing left to be done: figure out what to do with the leftovers. The court granted the state of Rhode Island all of 38 Studios' assets, including rights to its single-player RPG and the unfinished Project Copernicus.

The Rhode Island Economic Development Corp said that it will attempt to sell these assets to recoup as much of the loan made to the studio as possible.

This may be a slight blessing in disguise for fans of the studio's projects, as the move was made to keep the intellectual property intact instead of having it be lost due to the company's dismantling. The games are being transferred to servers for safe-keeping and constitute a majority of the studio's remaining net worth.

Rhode Island possesses 38 Studios' games, looks to sell originally appeared on Massively on Thu, 09 Aug 2012 09:00:00 EST. Please see our terms for use of feeds.

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Subpoenas issued over 38 Studios deal, Citizens Bank sues Schilling [Updated]

Justin Olivetti — Thu, 14 Jun 2012 09:00:00 EST

Filed under: MMO Industry, Legal, Miscellaneous

While the fallout from 38 Studios' collapse carries with it a human toll, it also has triggered a legal one as well. State and federal law enforcement agencies have issued subpoenas to both Bank Rhode Island and the Rhode Island Economic Development Corporation over the loans that enticed the game studio to the state.

Currently, the RI state police, the state attorney general's office, the FBI, and the US attorney's office are jointly looking into the situation. Police are investigating the specifics of the deals in an attempt to figure out what exactly happened. The subpoenas requested records of the financial contracts and loans.

Both the RIEDC's $75M in taxpayer bonds and Bank Rhode Island's $8.5M loan are unlikely to be repaid following the studio's bankruptcy.

[Update: Massively reader Zaken tipped us off to the fact that Citizens Bank has announced it is suing 38 Studios' Curt Schilling to the tune of $2.4 million "in an attempt to recoup its money from the ex-ballplayer's personal assets."]

Subpoenas issued over 38 Studios deal, Citizens Bank sues Schilling [Updated] originally appeared on Massively on Thu, 14 Jun 2012 09:00:00 EST. Please see our terms for use of feeds.

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Layoffs confirmed for 38 Studios, Rhode Island takes no action

Eliot Lefebvre — Mon, 21 May 2012 22:30:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

If last week's Project Copernicus flythrough had been a hopeful note, the latest news out of 38 Studios is another downturn. Following a meeting today, the Rhode Island EDC board decided to take no action to help the ailing company at this time. Governor Lincoln Chafee said following the meeting that the financial situation of the studio remains unchanged from last week, but did note that the company has seen some layoffs and underwent unspecified internal shifts.

Founder Curt Schilling did not directly respond to press inquiries, stating that he would answer questions when he is able to do so. He did, however, state that he was not taking further taxpayer money. Whether or not there will be a company there to take any money in the near future is still very much in doubt, however, and while Chafee has been a bit more diplomatic about aiding the studio, he has stressed that any assistance would be far on the conservative side.

Layoffs confirmed for 38 Studios, Rhode Island takes no action originally appeared on Massively on Mon, 21 May 2012 22:30:00 EST. Please see our terms for use of feeds.

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38 Studios' Project Copernicus to release in June 2013, says RI governor

Justin Olivetti — Fri, 18 May 2012 14:30:00 EST

Filed under: Fantasy, Launches, MMO Industry, Legal

It is not every day that a U.S. governor is the one to announce the launch window for an MMO, so savor the weirdness while you can: Rhode Island Governor Lincoln Chafee announced at a press conference that 38 Studios will be releasing code-name Project Copernicus next summer. "What I understand is Copernicus is June of '13," Chafee said. He also stated that he thought the financial deal was a "risky enterprise" from the start.

38 Studios Founder and Chairman Curt Schilling said on Facebook that rumors of his using the state funds to repay his personal investment in the company was "not true." In a separate post, Schilling attempted to set an optimistic tone: "We will find a way, and the strength, to endure."

We have been following the financial turmoil that 38 Studios is in following its default on paying back Rhode Island for its $75 million loan. The studio and state are looking for options, but in the meanwhile, 38 Studios has been struggling to make payments by holding back employee paychecks and seeking additional capital from private investors.

38 Studios' Project Copernicus to release in June 2013, says RI governor originally appeared on Massively on Fri, 18 May 2012 14:30:00 EST. Please see our terms for use of feeds.

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38 Studios paying state back by not paying employees

Eliot Lefebvre — Thu, 17 May 2012 18:00:00 EST

Filed under: MMO Industry, News Items, Legal, Miscellaneous

If you're familiar with the phrase "robbing Peter to pay Paul," you'll understand the latest episode in the ongoing 38 Studios financial crisis. Except replace "Paul" with "the state of Rhode Island" and "Peter" with "the company's employees." Yes, in order to make the most recent payment to the state that sparked this whole crisis, the Rhode Island Economic Development Corporation has been informed that Curt Schilling's company is paying the state but not paying any of the company's employees. According to anonymous sources, all temporary employees and contractors have also been terminated.

While this measure might help forestall immediate action, the company is still on the hook for a $75 million loan, and Rhode Island governor Lincoln Chafee has made it clear that the company is looking for more assistance from the state in order to remain viable. 38 Studios continues to make no public statements at this time. We'll no doubt have more on this story in the coming days as it continues to develop.

38 Studios paying state back by not paying employees originally appeared on Massively on Thu, 17 May 2012 18:00:00 EST. Please see our terms for use of feeds.

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Rumor: 38 Studios may be having financial trouble

Eliot Lefebvre — Mon, 14 May 2012 20:20:00 EST

Filed under: Lore, News Items, Rumors, Miscellaneous

38 Studios is one of many developers whose first big game (Kingdoms of Amalur: Reckoning) was rumored to lead into an MMO further on down the line. It looks like there may be storm clouds on the horizon before that project even gets moving, however, as the company may be facing financial issues. Rhode Island Governor Lincoln Chafee has apparently been meeting with owner Curt Schilling to work on "different issues," with Chafee noting that his administration has always tried to ensure that Rhode Island companies remain financially solvent.

If you consider that Rhode Island invested about $75 million in the company, it's obvious that the government has an interest in making the company remain viable over the long term. Kingdoms of Amalur: Reckoning was a moderate hit, but that might not be enough for the company as it develops. We'll have more on this story as it develops, hopefully with better news.

Rumor: 38 Studios may be having financial trouble originally appeared on Massively on Mon, 14 May 2012 20:20:00 EST. Please see our terms for use of feeds.

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38 Studios is looking for a few good men -- and women, too, of course!

Larry Everett — Tue, 15 Feb 2011 21:30:00 EST

Filed under: MMO Industry, New Titles, Miscellaneous

38 Studios has kept its Project Copernicus MMO under tight security for a while now; however, we do know that the studio has some big names in its pocket. Comic book giant Todd McFarlane, award-winning author R.A. Salvatore, and baseball great Curt Schilling have already added their talents to the roster. Even the government of the state of Rhode Island is excited about what this team is doing, given the guaranteed loans 38 Studios was offered if it moved to the state.

Today, Lead Community Manager Charles Dane tweeted that the team is LFM. He posted, "38 Studios is looking for top tier talent. This is a great opportunity to join an awesome team!" A buzz over to the jobs page for the studio shows that it is looking for an abundance of people. QA, engineering, art, and even finance are on the list of departments needing minions. Who knows? Maybe you are the top-tier talent the studio is looking for.

38 Studios is looking for a few good men -- and women, too, of course! originally appeared on Massively on Tue, 15 Feb 2011 21:30:00 EST. Please see our terms for use of feeds.

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The Perfect Ten: The movers and shakers of 2010

Justin Olivetti — Thu, 30 Dec 2010 18:00:00 EST

Filed under: Age of Conan, Lord of the Rings Online, MapleStory, MMO Industry, Star Trek Online, Guild Wars 2, Mabinogi, Champions Online, DC Universe Online, Star Wars: The Old Republic, RIFT, Vindictus, Perfect Ten, Miscellaneous

Even though MMOs are the products of great teams of talented workers -- from sound artists to writers -- it's inevitable that a few of the people behind the curtain step out into the limelight. It's a smart move, really; it provides a personal face for people to associate with the game, it keeps messages consistent, and it draws any potential hate onto one person instead of the team at large.

It stands to reason that these public figures end up being some of the major movers and shakers in the industry because of their high-profile positions. From CEOs to community managers, these are the people with power to make decisions, the voice to change opinions, and the personalities to inspire millions.

Oh, that last sentence is pure poetry. Let's re-read it again, shall we?

So in our last Perfect Ten of the year, I've asked the Massively team to compile a list of the 10 biggest MMO movers and shakers of this year. All of these people now owe us cupcakes of gratitude. (Legal Disclaimer: This does not signify a binding cupcake-blogger contract.)

Continue reading The Perfect Ten: The movers and shakers of 2010

The Perfect Ten: The movers and shakers of 2010 originally appeared on Massively on Thu, 30 Dec 2010 18:00:00 EST. Please see our terms for use of feeds.

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38 Studios Rhode Island deal still up in the air

Jef Reahard — Tue, 02 Nov 2010 14:30:00 EST

Filed under: Fantasy, MMO Industry, New Titles, News Items

Just when we thought 38 Studios' epic quest to move its guild headquarters to Rhode Island was nearing its conclusion, a posting on the blog of a local television news outlet casts a bit of doubt on the successful outcome of the proceedings. Reporter Ted Nesi writes that the state's Economic Development Commission is itching to close the $75 million loan it's taken out for 38 Studios.

However, if Lincoln Chafee wins the governorship in today's election, it could trigger a showdown, given the candidate's outspoken criticism of the deal. The other leading candidate, Frank Caprio, has said that if elected, he will "march down to EDC headquarters on Wednesday to do something unspecified about 38 Studios."

In other 38 Studios news, Amazon has recently published the official box art of Kingdoms of Amalur: Reckoning, the first official game to come out of Curt Schilling's company (currently slated for a September 2011 release). Check out the details, as well as a new screenshot, at 38gamers.

38 Studios Rhode Island deal still up in the air originally appeared on Massively on Tue, 02 Nov 2010 14:30:00 EST. Please see our terms for use of feeds.

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38 Studios announces official Rhode Island relocation

Jef Reahard — Thu, 23 Sep 2010 18:00:00 EST

Filed under: MMO Industry, News Items

The lengthy saga of 38 Studios' relocation looks to be drawing to an end, as the fledgling game company has published a press release touting the impending lease of an office building in downtown Providence, Rhode Island. Originally headquartered in Massachusetts, the developers behind the eternally cryptic MMORPG code-named Copernicus were offered a loot bag full of $75 million in loan guarantees by the Rhode Island Economic Development Corporation.

The relocation will generate 450 high-paying tech jobs, and state governor Donald Carcieri lauds it as a move that will "provide job opportunities for our college graduates in a fast growing industry, and will attract other interactive and entertainment companies to Rhode Island."

38 Studios announces official Rhode Island relocation originally appeared on Massively on Thu, 23 Sep 2010 18:00:00 EST. Please see our terms for use of feeds.

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38 Studios relocation loan in jeopardy

Jef Reahard — Fri, 03 Sep 2010 19:00:00 EST

Filed under: Fantasy, Economy, MMO Industry, News Items

Democratic Rhode Island gubernatorial candidate Frank Caprio has flip-flopped in his stance towards a $75 million loan from the state's Economic Development Corporation to fledgling game maker 38 Studios. The development house, founded in 2006 by former Major League Baseball pitcher Curt Schilling, is hard at work on the top-secret Copernicus MMORPG and was offered the lucrative deal in exchange for moving the company's headquarters from Massachusetts to Rhode Island (and bringing a proposed 450 high-paying jobs to the state's economy).

Caprio, who currently serves as Rhode Island's general treasurer, is one of several political candidates condemning the deal, a marked change from his views in past weeks, notes the Boston Globe.

"I am not going to stand by and watch us gamble taxpayer dollars on a bad deal when there are thousands of small businesses in need of more access to capital," Caprio said in a press release dated August 31st.

38 Studios relocation loan in jeopardy originally appeared on Massively on Fri, 03 Sep 2010 19:00:00 EST. Please see our terms for use of feeds.

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38 Studios moves next door to Rhode Island for 75 million smackers

Justin Olivetti — Tue, 27 Jul 2010 19:00:00 EST

Filed under: MMO Industry

Two weeks ago we reported that Rhode Island was attempting to woo 38 Studios away from Massachusetts with a tempting $75 million loan guarantee. Today we've gotten word that Curt Schilling's company has indeed taken the bait, and will be relocating to The Ocean State due to this sweet incentive.

While there's no definite timetable on the move, Mass High Tech reports that this loan guarantee comes with a few strings attached: 38 Studios will receive partial loan payments only upon meeting certain milestones, and the company has to put all of its assets up for collateral. The loan comes from a special $125 million program to create high-tech jobs in Rhode Island, and the state hopes that 38 Studios will account for up to 450 new jobs once it arrives.

Curt Schilling promised to "protect the loan guarantee that's been given by the state with the same passion and interest that I'm protecting my own investment in this company." 38 Studios recently announced that its single-player RPG, Kingdoms of Amalur: Reckoning, will be published by EA next year, with its MMO -- code-named "Copernicus" -- to follow.

38 Studios moves next door to Rhode Island for 75 million smackers originally appeared on Massively on Tue, 27 Jul 2010 19:00:00 EST. Please see our terms for use of feeds.

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Rhode Island pitches a $75M loan offer to 38 Studios

Justin Olivetti — Tue, 13 Jul 2010 20:00:00 EST

Filed under: Fantasy, MMO Industry, Legal

States are always highly competitive when it comes to luring industries to their neck of the woods to bolster the local economy. From movie shoots to auto plants to hospitals, states tend to be shameless in offering incentives and tax breaks to benefit from an economic injection by these companies. It's interesting to see that MMO studios are being courted as well.

Worlds in Motion is reporting that Rhode Island is enticing Curt Schillings' 38 Studios to relocate from Massachusetts in exchange for a $75,000,000 guaranteed loan under relief provisions for high-tech companies -- a provision that Massachusetts does not offer. The loan would represent a significant investment for the company, but Massachusetts is attempting to provide reasons for 38 Studios to stay put, including citing that it has better access to talent in the state.

As the MMO genre expands and more studios pop up, will we see an increase in states fighting over these companies in an effort to help their economies? In any event, Copernicus' developer now has a difficult decision to make, especially for this ex-Boston Red Sox pitcher.

Rhode Island pitches a $75M loan offer to 38 Studios originally appeared on Massively on Tue, 13 Jul 2010 20:00:00 EST. Please see our terms for use of feeds.

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