38 Studios going down the shitter (Kingdoms of Amalur devs)

[Average Manatee]

Republicans spend half their time telling us about how bad Government is at money then spend the other half proving it. Not news.

 

[Roguey]

Lawyers for the state of Rhode Island, which now owns all rights to the IP, said the game has brought in $713,000 for the state through Steam sales alone.

Low tens of thousands at best, that's pretty bad on the PC front.

 

[Average Manatee]

Lawyers for the state of Rhode Island, which now owns all rights to the IP, said the game has brought in $713,000 for the state through Steam sales alone.

Low tens of thousands at best, that's pretty bad on the PC front.

Keep in mind that this is after the state acquired them and months after the release of the game. And since "steam sales" probably means a $10-20 price range, with Valve taking their cut, the numbers aren't as bad as they might seem.

Of course, nothing compared to $100 million in debt. Fucking lunacy.

 

[Metro]

90% off or bust!

 

[Infinitron]

Curt Schilling now coaching girl's softball to pay the bills: http://www.bostonglobe.com/sports/2...story.html?s_campaign=email_BG_TodaysHeadline

 

[Kane]

failure is unnacceptable in this world, you're only allowed different degrees of success. 38S wasn't a failure. It was just less successful than others.

 

[MicoSelva]

I only wish that we got something better than Kingdoms of Amalur: The Reckoning from 38Studios' spectacular fall. Imagine what Troika could have accomplished with a budget like this.

 

[Metro]

How can this guy not get a job coaching for some MLB team -- if not in the majors then at least on some AA farm team.

 

[Infinitron]

How can this guy not get a job coaching for some MLB team -- if not in the majors then at least on some AA farm team.

He probably doesn't want to.

 

[groke]

How can this guy not get a job coaching for some MLB team -- if not in the majors then at least on some AA farm team.

Metro... Are you a faggot?

edit: I mean, to drive the point home:

Spoiler

'Man, I sure wish I was sitting in a cramped office working on a shitty ARPG no one bought or liked instead of watching sweaty. pubescent girls swing bats around.'

 

[DragoFireheart]

What sad, broken man.

 

[Stabwound]

I remember him being on Conan promoting Kingdoms of Amalur and it's only taken a year to go from celebrity talk show appearances to an absolute clusterfuck of a life. I can't help but feel a little bad for the guy.

 

[DalekFlay]

He's on ESPN every night, not like he's out to pasture.

 

[DragoFireheart]

He's on ESPN every night, not like he's out to pasture.

Pity limelight?

 

[DalekFlay]

He's on ESPN every night, not like he's out to pasture.

Pity limelight?

He was doing it before the studio crashed. No reason to fire him, he's actually a pretty good analyst if you like that sort of thing.

 

[DragoFireheart]

Court gives Rhode Island the A-OK to sue Kurt.

http://espn.go.com/mlb/story/_/id/9608634/judge-oks-lawsuit-vs-curt-schilling-38-studios-company

Suit vs. Curt Schilling can proceed
Updated: August 28, 2013, 4:29 PM ET
Associated Press

PROVIDENCE, R.I. -- Most of a lawsuit claiming former Red Sox pitcher Curt Schilling and executives at his failed video game company duped the state's economic development agency into approving a $75 million investment can move forward, a Rhode Island judge ruled Wednesday.

Superior Court Judge Michael Silverstein's decision allows the Economic Development Corp. to proceed with its lawsuit against Schilling, former 38 Studios executives, former EDC officials and others. The suit alleges fraud, negligence, breach of fiduciary duty, racketeering and conspiracy and says the board was misled into approving a $75 million loan guarantee for the company in 2010.

38 Studios -- named for Schilling's old jersey number -- filed for bankruptcy last year, leaving the state on the hook for $112 million. About $90 million is outstanding.

With the decision, the EDC has cleared the first major hurdle in pursuing potential claims against Schilling and others. Among other things, the lawsuit claims the defendants knew the company would run out of money by 2012, but concealed that from the EDC board, which made the final decision to back the deal.

The agency had used the loan guarantee to lure 38 Studios from Maynard, Mass., to Rhode Island, which has struggled for years with a bad economy and high unemployment.

Gov. Lincoln Chafee, who opposed the deal before he took office and who serves as EDC board chairman, said he was "gratified" by the ruling.

"It allows the important claims to proceed and is a significant first step to recovering the taxpayers' losses," he said in a statement.

Jeffrey Schreck, who represents Schilling and others at 38 Studios, declined to comment. Schilling has previously called the lawsuit political and denied wrongdoing. He said at the time the suit was filed that the EDC's approval of the loan guarantee was made "with its eyes wide open and with full understanding of any risks." Schilling has accused Chafee of not doing enough to help 38 Studios stay afloat and publicly called him a "dunce of epic proportions."

The EDC sued in November, naming 14 defendants. Nine of those worked for the agency, including former Executive Director Keith Stokes and former Deputy Director Michael Saul, as well as its attorneys and financial advisers. Four of the defendants were executives or on the board at 38 Studios, including Schilling. The final defendant issued an insurance policy to 38 Studios.

The defendants moved to dismiss all or parts of the lawsuit, and the judge rejected most of their arguments.

The suit doesn't seek a specific dollar amount but wants repayment of the $75 million in bonds that supported the deal. It seeks triple damages from some of the defendants, including Schilling.

In his ruling, Silverstein said the state can't immediately sue to recover the entire $75 million because it hasn't lost that much. The bonds are being repaid over time. But the judge said the EDC might have a claim for future losses if and when the General Assembly approves the payments. He also said the agency could sue for fees and salaries paid to the defendants and damage to its reputation and credit.

The legislature this year appropriated an initial $2.5 million for payments on the bonds.

Max Wistow, an EDC lawyer, said he was "quite pleased" by the decision and looks forward to moving ahead with the case. In court, Wistow has described a "fraudulent scheme" in which the defendants both withheld information and provided false information.

Attorneys for Stokes and Saul argued they should be immune from liability under the "public duty" doctrine because they were public officials who were doing their jobs and following orders, but the judge ruled the doctrine doesn't apply in a case where an employer is suing an employee. Saul's attorney, Bruce Gladstone, said his client is disappointed by the ruling but called the judge's finding that the EDC cannot now recover a $75 million loss "well-reasoned."

Silverstein dismissed some counts against Barclay's and Wells Fargo, which acted as bond placement agents for the EDC, and Starr Indemnity and Liability Company, which issued an insurance policy for 38 Studios.

The next hearing in the case is scheduled for Sept. 13.

 

[Brotherman Bill]

failure is unnacceptable in this world, you're only allowed different degrees of success. 38S wasn't a failure. It was just less successful than others.

Lol what? 38 blew all their money on a mediocre game and then wasted the rest on a shit MMO that would've tanked anyways, that's failure

 

[Kane]

failure is unnacceptable in this world, you're only allowed different degrees of success. 38S wasn't a failure. It was just less successful than others.

Lol what? 38 blew all their money on a mediocre game and then wasted the rest on a shit MMO that would've tanked anyways, that's failure

you sure, einstein??? you got that in a pee reviewed journal????

 

[Vault Dweller]

failure is unnacceptable in this world, you're only allowed different degrees of success. 38S wasn't a failure. It was just less successful than others.

Failure is unacceptable if you borrow $75 mil to make your "less successful", aka fairly mediocre game that doesn't sell enough to pay for that MMO pipe dream.

Curt tried to take the [gaming] world by storm and failed miserably. Had he been more reasonable or cautious, his company would still be around. As it stands, his is hardly the first business ruined by the MMO gold rush. The only difference is that Rhode Island had to pay for it.

 

[Average Manatee]

The treatment society gives to celebrities and athletes is truly disgusting. Right this minute thousands of people with no experience making games are busting their asses off trying to scam a few thousand bucks on kickstater, then this guy comes in and gets $100 million handed to him on a platter.

Don't see how the state expects to get anything back. Limited liability and all that.

 

[Bubbles]

The treatment society gives to celebrities and athletes is truly disgusting. Right this minute thousands of people with no experience making games are busting their asses off trying to scam a few thousand bucks on kickstater, then this guy comes in and gets $100 million handed to him on a platter.

Don't see how the state expects to get anything back. Limited liability and all that.

If Curt Schilling gave a signed baseball to every member of the state legislature, the state could actually make a large profit. We just need to wait and see.

 

[DragoFireheart]

If Curt Schilling gave a blowjob to every member of the state legislature, the state could actually make a large profit. We just need to wait and see.

You know someone would pay for this:

"Curt does Rhodie"

 

[DragoFireheart]

And now the Feds are getting involved:

http://www.gamasutra.com/view/news/200045/38_Studios_state_loan_comes_under_federal_scrutiny.php

38 Studios, the one-time developer of Kingdoms of Amalur: Reckoning which closed its doors in May of 2012, is now the subject of a federal probe under the U.S. Securities and Exchange Commission (SEC) concerning its $75 million taxpayer-backed loan from the Rhode Island Economic Development Corporation (EDC).

Both the EDC and SEC have declined to offer specifics on the investigation, which concerns the arrangement struck between the EDC and 38 Studios founder Curt Schilling. With 38 Studios' closure, the rights to Amalur have reverted to the state, and the outstanding amount of the $75 million loan has been passed on to taxpayers.

Rhode Island state senator Dawson Hodgson, who has in the past called for an independent probe into the 38 Studios deal, told WPRI that the SEC investigation is more than warranted.

"You've never seen a scandal of such historic proportions essentially disappear with little or no accountability for the havoc that was wreaked," Hodgson said. "It seems clear there was a lot of self-service as to how this deal was put together, and that is usually the starting point."

 

[Metro]

They need to fukkin auction off this IP so it can go on 90% off Steam sale.

 

[Jarpie]

If baseball punditry is anything like football punditry in england, he's making seven figure salaries per year so he probably don't have to go for soupline.