It was a crazy story back in 2007, and it’s getting crazier now. Former Boston Red Sox player Curt Schilling famously transitioned from World Series-winning pro pitcher to video game startup phenom, when he launched a video game company named Green Monster Games (now renamed to 38 Studios).
Since Schilling played for the Red Sox, 38 Studios would be based in Massachusetts, but in 2010 Rhode Island’s then-governor offered a $75 million loan if the studio would relocate in the tiny state. Schilling promised 450 new jobs, took the offer, and set up 38 Studios in Providence, the capital.
Things looked rosy, as the game they were developing, Kingdoms of Amalur: Reckoning was being backed by massive amounts of lore from fantasy superstar R.A. Salvatore, and art direction from comic legend Todd McFarlane. EA was going to publish, they had a massive development budget from the aforementioned loan, and were able to bring in a lot of talent to make it all happen.
WUPS
The problem is, Kingdoms of Amalur just isn’t doing that well.
As with any trainwreck, a lot of fingers can be pointed. Perhaps the timing was off, with Kingdoms launching just months after the incredibly successful Skyrim, a game in the exact same genre. Perhaps because of Skyrim’s success, the bar was set too high. Many reviewers seem to express the same sentiment: It’s almost great. From complaints to the combat system to the very generic storyline, the game received mixed reviews; though it did manage an 81 Metacritic score, which is considered just toeing the line of “successful”.
What’s most important, especially to the taxpayers of Rhode Island, is that on May 1st, 38 Studios defaulted on their $1.1m payment for the state-backed loan.
Governor Lincoln Chafee, who it should be noted was opposed to the loan in 2010, has just come right out and said what so few politicians are willing to say: “We’re in deep”. There’s really nothing obvious that indicates 38 Studios will suddenly be able to start making enough money to make their loan payments. In fact, things look even more grim when one takes into consideration that the Boston Herald reports that Turbine games has hastily organized a video game talent recruiting event, right around the corner from 38 Studios. Not ones to sit idle on an opportunity to recruit some good developers with very current fantasy/rpg experience, that Turbine.
Why, gubna, why?
It’s reasonable to assume that 38 Studios will not be around much longer. The citizens of Rhode Island will have to eat the loss, and you can bet your johnnycakes that they won’t be amicable to fostering a burgeoning video game industry with taxpayer funds ever again.
The concept of states luring companies to settle in their borders is not new at all. Every state makes a gamble when they offer tax breaks, loan guarantees, or other perks to lure in companies that make a strong case for creating jobs. One can’t really blame former Governor Donald Carcieri for getting excited at the idea of a company backed by such big names coming in and promising 450 jobs. That’s a magic buzzword in politics.
Usually, these deals are reserved for manufacturing or other industrial businesses, however. In the case of a game studio going under, the State really has nothing to repossess, and no assets to gain (such as a factory that they could re-sell) if 38 Studios goes away.
If you’re a Rhode Islander, consider it your civic duty to go out and buy a few copies of the game; blog about it, share it with your friends, and hope that 38 Studios can find some magic way to suddenly become successful. But whatever you do, please don’t hate the entire gaming industry after all this shakes out.