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Rhode Island taxpayers footing the bill for Kingdoms of Amalur flub

Rhode Island taxpayers footing the bill for Kingdoms of Amalur flub

Kingdoms of Amalur Reckoning and Rhode Island

More like Wreckening, mirite?

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.

 

 

Comments

  1. BHHammy
    BHHammy That's VERY sad. As someone who picked up Kingdoms of Amalur a little ways back, I had fun with it for a little while.

    The combat/class system they devised for the game is actually pretty decent. It has a couple of issues here and there, but the game doesn't make you wait a really long time to get some of the good shit. The level-up pacing seemed ok to me.

    The problem is, and I'm sure this is what a lot of the problem boils down to, is that it's pretty much an offline MMORPG. The quest structure is exactly the same (with a rather cruddy quest-tracking system at that), and while the story in interesting in the beginning when you first start off, the way they end up relating it to you just really doesn't work out (the generic-ness of the fantasy storyline is a whole other kettle of fish that I won't get into).

    It also doesn't help that they've either got the camera practically pointing down at your shoulders, or jammed up your ass at all times. Kingdoms of Amalur actually does have a nice world, but you don't really get to witness much of it because the way they handle the camera in the game is just terrible.

    The way it was described in the article is probably the best way to put it- "It's ALMOST great." The combat kept me playing for a long while, and the crafting system is ok if you can actually find ways to GET the parts you need, but there's nowhere near enough interest to keep you playing through the whole thing, and it can get repetitive.

    This is kind of wild that Rhode Island ended up funding this, though. I'd never even considered a state actually throwing down money for a game studio to set up shop in their state. And as it's pointed out in this article- who can entirely blame them? On paper it sounded like they had a dream team to succeed.

    Never expected to hear about taxpayers paying for a gaming studio flop, but there you go.
  2. UPSLynx
    UPSLynx This is why you don't book deals with things you don't understand.

    "we're in deep"? Really now? Gov Chafee can kiss his career goodbye.

    Fantastic story Brian.
  3. UPSLynx
    UPSLynx Thing is, I bet 38 Studios could recover a decent bit of profit if they dropped the price, or had a steam sale. At $50, it just can't compete with the other titles out there.
  4. primesuspect
    primesuspect
    This is why you don't book deals with things you don't understand.

    "we're in deep"? Really now? Gov Chafee can kiss his career goodbye.

    Fantastic story Brian.
    Just to be clear, Gov. Chafee was opposed to this before he was elected; as is the case with a lot of political fuckery, he has to deal with something his predecessor screwed the pooch on.

  5. UPSLynx
    UPSLynx
    This is why you don't book deals with things you don't understand.

    "we're in deep"? Really now? Gov Chafee can kiss his career goodbye.

    Fantastic story Brian.
    Just to be clear, Gov. Chafee was opposed to this before he was elected; as is the case with a lot of political fuckery, he has to deal with something his predecessor screwed the pooch on.

    Oh yeah, I know, but you know how elections go. He'll probably get owned by voters just because.
  6. fatcat
    fatcat confused: "The company did make the payment today, and the check cleared, the governor said."

    http://news.providencejournal.com/business/2012/05/were-in-deep-chafee-says-of-ri-involvement-in-38-studios-deal.html

    just 17 days late :)
  7. primesuspect
    primesuspect That's the point. It took them 17 days to make a $1.1m payment; they defaulted on the terms of their loan, regardless of how late they paid it. If they can't make this one, they're not going to suddenly be able to make the next one on time (unless they magically sell a bajillion copies of KoA all of the sudden)
  8. fatcat
    fatcat even if it they don't pay another dime, it now breaks down to $74 tax payment per resident
  9. Cliff_Forster
  10. Cliff_Forster
  11. Cliff_Forster
    Cliff_Forster I've seen Curt Schilling on Fox News a few times, as a huge baseball / gaming fan I'm fascinated by him so I stop and listen. Turns out he is one of those blow hard right wingers that says hey, the Government, who needs it, Obama is destroying the fabric of our society with bailouts yadda, yadda, yadda.... And then he accepts 75 million in government loans?? Typical, do as I say, not as I do.

  12. dwinner Only played the demo portion, but though the graphics were decent and the game play was fine. I would like to think that this game just had horrible timing on release. As mentioned with Skyrim released previously and only a month or two before Diablo 3 (my reasoning for not purchasing KoA).
  13. primesuspect
    primesuspect The employees of 38 Studios have not been paid since May 1st, according to Joystiq: http://www.joystiq.com/2012/05/23/38-studios-employees-unpaid-since-may-1/
  14. Koreish
    Koreish Who needs money when you can make so-so games for free?
  15. primesuspect
    primesuspect They're all gone. 38 Studios is done. All developers were laid off today.
  16. Canti
  17. midga
    midga That's about the only way it could have gone, unfortunately =/
    They should at least give every taxpayer hit by this a copy of the game.
  18. Cliff_Forster
    Cliff_Forster That sucks, they have ties with Big Huge Games which is a company based near my home.

    It amazes me the cost of development for these blockbuster titles. To think it's been reported that it sold around 1.2 million physical copies, which is not shabby, but still was not able to scrape enough money up to at least keep up with its guaranteed loans?

    Sounds like the projects scope was just too much for a first attempt. Sounds like a company run by an athleete with a huge ego?
  19. midga
    midga Makes me wonder what their projected sales numbers were...
  20. fatcat
  21. Cliff_Forster

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