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Posted by theveej

Feel bad for the guys at 38 studios, feel really bad for Rich. I'm sure the door is open for Rich to comeback to gaming websites if he wants to, but seemed like he had bigger ambitions

Just wish the best for everyone involved in that studio, hopefully the damage can be minimized.

Posted by YetiAntics

No wonder I haven't heard from Shilling on ESPN Radio recently...

Posted by RedRoach

@Zaxex said:

Video game development shouldn't be this risky. It's common to hear people getting fired or studios closed because a game didn't sell as well as they would've liked.

The medium seems to be growing, I just hope that it becomes more sustainable.

It's not this risky. This happened because there were some seriously dumb decisions being made. MMO's are massive, the most expensive games to make without a doubt. You need to have a shit ton of money before you can make one. 38 should've made 3 or 4 regular games and built up some cash. They should have payed off that loan and had a sizable amount of money before undertaking a massively expensive project like an MMO.

Posted by PatchMaster
Posted by Ehker

OK, WTF is going on? 38 Studios hand-delivered a check that didn't have sufficient funds.

Separately, Governor Chafee's office said 38 Studios hand-delivered a check for the overdue $1.125 million payment to the EDC that set off this week's crisis. However, shortly thereafter Rick Wester, its chief financial officer, called the agency and said there were insufficient funds to cover it. The EDC then returned the check.

Posted by JohnDudebro

38's completely boned, then.

Sorry, Rich and Ben! Hope you land on your feet!

Posted by Lukeweizer

Poor Rich and Bob. And everyone...

Posted by RedRoach

There's no way they're going to survive this. They're struggling to make payments now and that MMO is a long way off. They can't pay their employees and they're not going to have a revenue stream in the near future. I'd be surprised if they last 1 more month. Everyone's to blame here, RI should've known this would be a long term investment. They should've known they weren't going to see that money until Copernicus came out. And 38 is damn near retarded for making an MMO as their first game. MMoO's are just so massive that you need to build up a nice big cash pile before you can consider taking on such a huge task.

Posted by DukesT3

So its legal to not pay your employees? Something doesn't seem right with that...

Posted by ahgunsillyo
@Ehker

When Alex Navarro doesn't have a single sarcastic tone or joke in a news story, you know it's serious.

Nail on the head.
Posted by pickassoreborn

That's the worst. I was laid off the day before payday and - yep - no pay for that month. Horrible situation. Best of luck to those affected, sounds like management have fucked it up again for those who really matter.

Posted by Little_Socrates

This sucks. Good luck to employees of 38.

Posted by George_Hukas

@Jellybones said:

It's kind of amazing to me that this is legal.

Then again, laying everybody off would be perfectly legal..

Posted by wisdumcube

Things aren't looking good.

Posted by fini_fly
Posted by Ehker

When Alex Navarro doesn't have a single sarcastic tone or joke in a news story, you know it's serious.

Posted by nERVEcenter

Kingdoms of the Northeast: An Online Rhode Island Adventure

Various fantastical beings and magics have emerged in Rhode Island! Stop an invasion of evil armed, immortal Republicans at its source, helping your esteemed Rhode Island representatives stem the tide at the source and ensure the fair distribution of all taxpayer loans!

This project funded and endorsed by your friendly State of Rhode Island and Providence Plantations Economic Development Corporation.

Posted by Legend

@laserbolts said:

Even though Amalur was shit I do feel bad for the people at 38. Hopefully they can bounce back.

I still haven't played it myself, but if the reviews are any indication, Amalur actually seems to be a pretty good game.

Posted by Zaxex

Video game development shouldn't be this risky. It's common to hear people getting fired or studios closed because a game didn't sell as well as they would've liked.

The medium seems to be growing, I just hope that it becomes more sustainable.

Edited by ChrisTilton

This was unfortunately inevitable. I can't think of any startups that were funded by millionaires who have no idea how to make games that lasted more than a couple years, and that's simply because it takes that long to burn through all the money.

Have there been any startups in the last 5 or 10 years that started with millions that ended up being successful and are still around? I guess there must be at least one?

I hope Rich updates his resume.

Posted by alternate

Delaying payroll could be a valid, if desperate, tactic if they were close to shipping the game but with no sign of income in the near future it is just postponing matters at the expense of working stiffs.. Also 300 full time employees is just rediculously over ambitious for a first time project.

Posted by DrRandle

I'm curious what EA's input on this one since they were publishing. Were they just contracted to move the game around, or is there anything they can do to help get this set straight? Not that they likely wood, I'm just more curious than anything.

Posted by SlightConfuse

wow that sucks and is that even legal to skip payroll, unless they are getting it back next cycle

Posted by blacklab

Damn, Schill got phat fast

Posted by oldschool2112

"In the wake of the situation at 38, Keith Stokes, the executive director of the RIEDC since 2010 and architect behind the $75 million loan that brought the studio to the state from Massachusetts, has resigned."

The real criminal in this situation gets to walk away clean after hosing the people of R.I.

Posted by supercubedude

Toast.

Posted by leejunfan83

Honestly who didn't see this coming years ago

Edited by Legend

Can we use the tip jar to tip Rich? Maybe as a thank you for the time trotters episode. :)

Posted by CharAznable

Man, sorry to hear this. Best of luck to the employees.

Posted by Kidavenger

@DrDarkStryfe said:

I feel even worse for the workers, they are the ones getting the raw end of this.

How so? They can just go and get another job if they are good and completely wash their hands of this, the owners of 38 studios are going to lose all the startup capital they put in to get the company going and will likely be hounded by the state and other creditors for years, and the tax payers of Rhode Island are out however much is still outstanding on the loan. Employees did a shitty job and the game is behind schedule and they get off scott free.

Posted by mpgeist

Bloody sock can't save you now Schilling!

Posted by Foggen

SAVE GALLUP

Posted by Shaanyboi

Shit... :(

I wish all those let go the best.

Posted by ArbitraryWater

Well, they're pretty much screwed.

Posted by MrMazz

Daaaamn I had no idea this was actually kind of big until one of my friends mentioned it and isn't a gamer in anyway.

Posted by dead_eye_sam

Whoa.... I wonder if 38 is going to survive this... I hope they do.

Posted by laserbolts

Even though Amalur was shit I do feel bad for the people at 38. Hopefully they can bounce back.

Posted by freakin9

Reckoning indeed. Reckoning... indeed.

Posted by DrDarkStryfe

And now this has become a political scandal.

A shame to hear this, I really enjoyed my time with Amalur, and the studio looked to have the chops to put out some quality work. I feel even worse for the workers, they are the ones getting the raw end of this.

Posted by Dallas_Raines

@depecheload said:

Skipping payroll means you're boned. No ways around it. This is it for them. Looks like Rhode Island is going to own the rights to Kingdom of whatever the heck it's called.

This is what happens when you borrow a fuckton of money and barely release anything. A revenue stream is kind of a vital part of any business.

The State of Rhode Island Presents: Kingdom of Amalur: Rekoning - Copernicus Online

Posted by TadThuggish

Yeah, that's gonna work out.

Posted by iAmJohn

I'd like to say that hopefully someone will step in and save Big Huge Games, but something tells me that it would be Bethesda to do so.

Posted by harrymcback

Interesting that they choose to break what is a typical labor law in most states about having to pay employees for time worked so they could pay their obligation to the state.

I think Bob Salvatore needs to post some new eBooks to the 38 studios website next week to raise enough to make payroll.

Posted by Eribuster

Sad to see it has come to this. Kingdoms of Amalur: Reckoning didn't seem bad enough to warrant this.

Posted by AiurFlux

Now I feel sorry for them.

The suits get rich, the people with actual talent don't get a fucking paycheck. If I was them I'd start finding different options and getting the hell out of Dodge because that studio is going to sink like the Titanic. Can't say I'm shocked or sorry for Schilling and the rest of the higher ups, but I feel bad for the people that moved to Rhode Island with dreams that are now being crushed by fucking morons.

Economic stimulus at it's finest here folks.

Posted by depecheload

Skipping payroll means you're boned. No ways around it. This is it for them. Looks like Rhode Island is going to own the rights to Kingdom of whatever the heck it's called.

This is what happens when you borrow a fuckton of money and barely release anything. A revenue stream is kind of a vital part of any business.

Posted by Winternet

Nooooo. Rich needs to get to E3 and show on the bombcast . . . and get paid, of course.

Posted by StressedOutCat

I still hope that the 38studios will turn things around, yet this doesn't look good.

Posted by mrfluke

holy shit, rich should get out of there then

Posted by mordukai

Lesson learned from this???

Don't take loans from politicians. 75 million, fuck sake, that's a ton of money. No matter what happens the tax payers of Rhode Island are left with the bill.