38 Studios seeking additional state funding

38 Studios is requesting additional Rhode Island state assistance in the wake of its overdue payment to the Economic Development Corporation.

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Kingdoms of Amalur: Reckoning developer 38 Studios is requesting additional assistance from its home state of Rhode Island, following reports that the company was meeting with officials to discuss its $75 million loan guarantee. The Rhode Island Economic Development Corporation didn't take action yet, and is reportedly still deciding whether to help the company.

Local station WPRI reports that the company could still pay off its overdue payment of $1.125 million, which was due to the EDC on May 1. So far the company has received $49.8 million of the $75 million loan.

Governor Lincoln Chafee says the question is "how do we avoid throwing good money after bad?" He says that while he was initially opposed to the EDC loan, he is now on the company's side since taxpayer money is at risk. "Well we had a very generous proposal that 38 Studios took advantage of," he said. "Now we're in some difficulty with that. Very generous proposal."

Now the EDC board is set to meet again on Monday, while continuing to talk to 38 Studios in the meantime for more information. Exactly what form the state help could take isn't clear, but House Speaker Gordon Fox suggested the possibility of state tax credits.

The rub lies in drumming up more money to pay back the loan, though, which would probably mean selling another product. 38 Studios has been quiet on its next project, codenamed "Copernicus," and Chafee says he doesn't know if the title is on-schedule.

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  • reply
    May 16, 2012 3:00 PM

    Steve Watts posted a new article, 38 Studios seeking additional state funding.

    38 Studios is requesting additional Rhode Island state assistance in the wake of its overdue payment to the Economic Development Corporation.

    • reply
      May 16, 2012 3:52 PM

      Sounds like 38 Studios needs a Kickstarter campaign :(

      Really sorry to hear about this, though, as I was absolutely taken over by the game they created and really hoping to see more from them in the future.

    • reply
      May 16, 2012 6:27 PM

      taken from joystiq:

      I know theres some senior citizens in Rhode Island waking up tomorrow, reading the Rhode Island Divulger or w/e paper they have there, sipping coffee and then spitting it out going:

      "WTF is the Kingdom of Amalur, some third world country.. and WTH do I have to pay for them?"

      " Say what, Martha? A video game? Dagnabbit.. I'd rather pay for the third world country than one of those things..."

    • reply
      May 17, 2012 12:50 AM

      Man, sucks to be a citizen of Rhode Island.

      Euro's collapsing, America has lost its industrial base, food and oil prices are rising, unemployment has been high for years... and the Rhode Island state legislature decides that it's a good idea to invest 75 million dollars in a generic Role Playing Game.

      Unless all the members of the Rhode Island general assembly formerly worked for large video game companies, this investment was totally fucked from the beginning.

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      May 17, 2012 7:19 AM

      sounds like someone over hyped their own game..... and then took an arrow to the knee

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      May 17, 2012 7:32 AM

      Schilling and the other owners of 38 are fucking loaded personally. Let them float the company the money. Oh they don't want to invest in their own company that might fail? The idea that tax payer money went to them in the first place is astounding.

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        May 17, 2012 7:37 AM

        Schilling paid back his initial $4M loan to the company from the last payment they got from the state. The lols, the lols.

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          May 17, 2012 8:16 AM

          so he paid himself back and now wants more money from the state?