MAY 14, 2012 ● Curt Schilling’s 38 Studios opened up a hornets nest in Rhode Island when the studio missed a $1.1 million guaranty payment to the state’s Economic Development Corporation. Rhode Island lured the developer from Massachusetts in April 2011 with a $75 loan. The investment was slated toward 38 Studio’s second project, the MMO Project Copernicus, and was intended to assure employment in 450 jobs. The studio had received $49.8 million of the loan by March 15, and had 288 staffers in the state. After the payment default, Schilling met personally with state officials to seek additional financial assistance, and subsequently it was reported that the studio missed its payroll. On May 24, 38 Studios instituted a company-wide layoff to avoid further loses.
Impact: Creating MMOs is not for the feint of heart. The costs of building and running a major service are enormous, and can be hard to project realistically ahead of time. Whatever the direct causes of 38 Studio’s financial distemper, the fact remains that this studio has pursued a very aggressive content strategy. Despite Mr. Schilling’s personal wealth, and investment from Rhode Island, the costs of running 38 Studios appear to have been too great. The outfit’s first title, the RPG Kingdoms of Alamur: Reckoning, is not selling poorly by any means, amassing 1.2 million in sales worldwide, according to Schilling. Unfortunately, this was not sufficient to save the day.
