The collapse of 38 Studios has put the state of Rhode Island in a precarious position. The government offered substantial loans to Curt Schilling's company. Following its bankruptcy, fingers were pointed: who's to blame?

A lengthy feature on The New York Times details the rise and fall of 38 Studios, and how both parties involved bit off more than they could chew. Schilling didn't properly anticipate the challenges of game development, let alone MMORPG creation. Rhode Island, eager to reinvigorate its economy with tech jobs, dove head-first into an investment that had "red flags" from the get-go.

Read more: Schilling and the government chasing a 'dream' »

38 Studios is deceased in all but name, but at least Curt Schilling's failed video game start-up won't be facing federal criminal charges. A spokesperson for the U.S. Attorney's office has said that it is not planning to pursue any further federal action against the company.

Read more: State authorities still investigating »