@Grilledcheez said:

So basically they would have gotten a much higher percentage of their money back if they had just given them a few million more and let them develop for one more year and put it out...GOT IT.

"A Few million more" would have done nothing to help get the game out. At the rate 38 was spending money on a monthly basis it would have kept them afloat for an insignificant amount of time.

Keep in mind when things went real bad for 38 and they panicked to show some progress all they released to the public was a few bits of art, and some city flyovers on youtube. Nobody knows exactly how far along they were or how close the game was to shipping but in RI defense why keep throwing good money after bad?

Actually reading through the complaint: wow. wow. There are counts of larceny and racketeering in here, even. They're suing their own legal counsel and their own executive director in addition to the 38 folks; the basic allegation is that 38 knew very well that $75 million wasn't enough, that they'd run out of money, but lied to the state of Rhode Island and said it would get them through.

@Warchief said:

@Grilledcheez said:

So basically they would have gotten a much higher percentage of their money back if they had just given them a few million more and let them develop for one more year and put it out...GOT IT.

"A Few million more" would have done nothing to help get the game out. At the rate 38 was spending money on a monthly basis it would have kept them afloat for an insignificant amount of time.

Keep in mind when things went real bad for 38 and they panicked to show some progress all they released to the public was a few bits of art, and some city flyovers on youtube. Nobody knows exactly how far along they were or how close the game was to shipping but in RI defense why keep throwing good money after bad?

I guess because they had been developing it for years and they were just then starting to run through the 75 million loan, I don't really think 55 mil in the tank (if they sell the ip for 20 mil, doubtful) is better than what they would have ended up at otherwise...but whatever, they bit the bullet.

@downtime58 said:

Maybe I'm misunderstanding the issue, but it sounds like the government is suing 38 studios because it's investment didn't pan out. In other words, had 38 Studios been a success there would have been no lawsuit.

So fundamentally, this lawsuit is saying: If I make a bad investment in a company without doing my own due diligence, I can just sue the company I invested in and absolve myself of any blame for making a bad decision.

I wish it were that easy for the rest of us.

Pretty much this, well im sure we dont have all the facts the thing is theirs risk on both sides and you dont give loans out like this unless your willing to gamble with your money. This sets bad president for future government investment in company's as it says that they will screw you if things go haywire.

Just when you think it couldn't get worse it does. This is all the more screwed up when you consider that it was probably the new governor's fault that EA didn't sign the deal for Reckoning 2 which lead to the instant closure of the studio, which destroyed any hope of them paying back the loan.

I mean Copernicus probably would have failed to make back its investment anyways but maybe Reckoning 2 could have improved on the sales of the first one and worked towards paying off the debt. I find it crazy that the same guy who sabotaged the deal is the one suing for the consequences.

fucking ruthless

This should get thrown out of court immediately and the judge just laugh at Rhode Island. I'm sorry, but if you make a bad investment that is unsecured, you just don't start suing everyone. What a joke!

@Razorlution said:

@DougQuaid said:

@Pyroph said:

Wonder how much Schilling even has left now.

I remember listening to an interview he did with ESPN after everything went bad back in May. He pretty much said that he was almost completely tapped out in terms of his savings from his baseball career.

I wouldnt believe that for a second. No one would use their own fortune on something like this, even Schilling isnt that stupid.

Thats exactly what he did. The dude is now broke. But the guy has a huge knowledge of baseball so ESPN will always be willing to pay him.

Still cannot believe they loaned them $75 million. That is just....so much money. For a game? What on earth was the thought process there?

Wow... Do they all have to get on their knees and have the state slap them in their face with its dick as well?

Geez, he declared that 38 studios was a "grave injustice" against the Rhode Island people. Wow. Amazing.

basically:

1. 38 studios horribly mismanaged the money they were given

and

2. RI was stupid for taking such a huge risk in the first place

so they're both about equally at fault, and it's the taxpayers/ex-38 studios employees who are the real victims. i think it's best just to let it all go and move on

I like the part where the lawsuit says that the government neglected to look into the background of 38 studios. And now wants their money back.

Oh, If only neglect worked that way.

@pekoe212: To get tech jobs in the state. They hoped it would help there image if a big game came out of there state, and more companies came for tax breaks.

I see that "financial recovery," means "bad-mouthing a company that supplies lots of high-paying, high-skill jobs to hundreds of people as they seek to be bought off by other companies in an effort to survive, thereby guaranteeing that the state never recovers its cash from a recovery of the studio and that hundreds of jobs are lost from the state as people go back to their home states, and more people look at Rhode Island as a hostile and shitty place to bring business and are sure not to return."

Well fucking done, Mr. Governor. Well fucking done.

@Caelum89 said:

. . . I'm not entirely sure that this isn't some ploy to look good for whatever reason. I'm not exactly sure if I'm on a side if any.

This was my first thought. I may be one of of the tin-foil-hat guys who thinks that the entire political structure of the USA is filled to the brim with selfish, corrupt, dishonest men and little else, but putting out a youtube video like that just looks like the governor is trying to put on a show for his reelection.

I don't know anywhere near enough about the entire situation to go one way or another on it. Talk about kicking a guy when he's down, though.

Seems a bit like scapegoating if you ask me. The Rhode Island government approved the deal, for Gods sake, and now they're on the defensive saying they're doing this for the taxpayer.

That's My Style I Like To Kick 'em When They're Down - Nixon Chaffe

Christ, this sucks. I doubt that they'll get the money back, there is no money and investing is always a risk, but we'll just have to see.

Holy shit, if the quality of their video equipment is any indication, the governor's office of Rhode Island could really use that money.

Good luck suing a now virtually non-existent company for $75 million it had to borrow from you in the first place two years ago and therefore does not have to give you back. This will surly work and not waste any more tax payer money on expensive attorney's.

What a stinking mess. Still can't believe they loaned a whole 75 million dollars to a feeble 38 Studios. What in the world were they thinking.

Not only is it hella funny that the Govna' did a youtube about it. But he got the best lawyer he could haha.

They should have never started with a big game. Many studios first games are huge games that cost lots of money and they go out of business.

Anyone who's watched ESPN's baseball coverage over the last few weeks must have seen the physical toll this event has taken on Schilling. The guy looked ragged. I feel kind of sorry for him but nowhere near as much as I do for all the misled employees who discovered that 38 Studios wasn't paying their bills or mortgages as promised.

I don't know what Rhode Island can really get from this but in an election year the politicians who ok'd this have to appear to be doing something. As I said before, they should just sell the all the assets and licenses to a Korean MMO company.

Man, the governor really threw them under the bus. He's such a dumbass.

Fuck Chafee.

I hope the state doesn't get away with this.

The screencap made me think this was somehow red alert related.

a....state gave a video game studio 75 million dollars?

Excuse me if I'm missing something, but I thought that the court already declared in the federal case that there was no underhanded tactics behind 38 studios demise and that, as Curt said, according to the documents the studio would have probably been fine if not for the input of Chaffe, so what exactly is he expecting to gain from this. It's pretty much a guaranteed loss....

Is he only doing this to save face now?

Lincoln Chafee is just covering his own political ass. He is the embodiment of a soulless politician with no concrete principles or values that drive him other than his own self preservation. Chafee is scum and this futile lawsuit will accomplish nothing but cost the taxpayers even more money. This is what happens when governments invest in private companies, the public sector does not weigh risk versus reward as efficiently as the private sector because it's not their money they are gambling/investing with.

Schilling is no businessman, he's a baseball player and a gamer who just wanted to get into the business he loves after leaving the sport he loved. According to every employee account I have read, they loved working at 38 studios and ended up making a promising new IP in Amalur.

What is the lesson in all of this? Businesses need to stay OUT of Rhode Island, especially gaming companies. Go to Texas where the game industry is booming these days.

I know nothing about business so sorry about this most likely dumb question. With this, are the former employees being sued as well in this or is it just the management side of the company included?

@Razorlution said:

@DougQuaid said:

@Pyroph said:

Wonder how much Schilling even has left now.

I remember listening to an interview he did with ESPN after everything went bad back in May. He pretty much said that he was almost completely tapped out in terms of his savings from his baseball career.

I wouldnt believe that for a second. No one would use their own fortune on something like this, even Schilling isnt that stupid.

entrepreneurs invest their own money all the time in their own businesses, even to the point of putting up their homes as collateral. Now I'm sure Schilling has something stashed away, but he most likely did invest a ton of his own money in the company and then was lured in by Rhode Islands desperate offer to get more business in the state.

If you seriously don't think people invest their own money in their businesses, you need to learn how the market works. Not everyone can get money from outside sources and most businesses are not publicly traded on the stock market.

Because suing someone who clearly doesn't have the money and no income to pay it back is a valuable use of time. Imagine Obama's bailout recipients going bankrupt and then Obama suing them for not using the bailout money "properly."

Always weird to see my state make the news.

@AlisterCat said:

That video seems like it was filmed in 1995.

Ha! Awesome. And true.

@buzz_clik The only thing it's missing is noisy edges from a bad VHS transfer.

If there was some under the table type crap going on then the State has to at least try. Thou, at this point there really isn't much meat left on this bone.

@Daemonocracy said:

Lincoln Chafee is just covering his own political ass. He is the embodiment of a soulless politician with no concrete principles or values that drive him other than his own self preservation. Chafee is scum and this futile lawsuit will accomplish nothing but cost the taxpayers even more money. This is what happens when governments invest in private companies, the public sector does not weigh risk versus reward as efficiently as the private sector because it's not their money they are gambling/investing with.

Schilling is no businessman, he's a baseball player and a gamer who just wanted to get into the business he loves after leaving the sport he loved. According to every employee account I have read, they loved working at 38 studios and ended up making a promising new IP in Amalur.

What is the lesson in all of this? Businesses need to stay OUT of Rhode Island, especially gaming companies. Go to Texas where the game industry is booming these days.

The next logical step is arresting the ex-employees and giving them lengthy prison sentences.

That'll teach those fuckers.

loan =/= investment

This does seem like political opportunism on Chafee's part.

Who in their right mind would loan a 75 million dollar grant to one game studio?

I know nothing about business so sorry about this most likely dumb question. With this, are the former employees being sued as well in this or is it just the management side of the company included?

It's not even really an island.

This guy looks like he should be in a Tim and Eric sketch.

who the hell would pay $20million for the Amalur IP? If you offered it to me for free I might not bother because I'm running out of space in my home and a few binders full of shitty concept art would just take up room.

There's no way they can get that money back. It's gone.

@VisariLoyalist: not really... we're the most politically corrupt state in the entire union. Our most loved politician served federal prison time. This kind of stuff happens every now and then.

@HighPriest said:

@AlisterCat said:

That video seems like it was filmed in 1995.

That is because it is still 1995 in Rhode Island.

Fuckkk... I'm still three years old and I'm going to rhode island college, that has to be a record or somethin.