Sections

Former RIEDC head accuses Rhode Island governor of blocking 38 Studios’ attempts to avoid bankruptcy

Saturday, 5 October 2013 22:08 GMT By Stephany Nunneley

The former head of the Rhode Island Economic Development Corporation has accused Rhode Island governor Lincoln Chafee of blocking attempts made by 38 Studios to handle debt and raise capital before it file for bankruptcy.

The studio’s co-founder, Curt Schilling, said when the company filed bankruptcy in May 2012, Chafee had made public remarks “that were devastating to the company’s attempts to stay solvent,” and according to a lawyer for former RIEDC head Keith Stokes, the did more than mouth off in public to hurt the game developer.

According to a report from the Boston Globe, Stokes’ lawyer said Chafee actively blocked 38 Studios’ attempts to restructure and refused to meet with executives in 2011 over the matter. The claim also states he forgoed attempts to even discuss the matter with the RIEDC’s board of directors.

Chafee, on the other hand, claims he “made every attempt to save the company.”

It has also been noted before by Chafee, that he was against the $75 million taxpayer-guaranteed loan brokered between former governor Donald Carcieri and 38 Studios.

The deal saw 38 Studios relocate from Massachusetts in 2010.

A lawsuit accusing the Kingdoms of Amalur developer of “fraud, negligence, breach of fiduciary duty, racketeering and conspiracy” as well as misleading Rhode Island’s economic development agency has been brought against the company by the state, with other defendants including four former 38 Studios executives and its insurer.

Thanks, GI International.

Latest

  • Watch the first 20 minutes of Life is Strange

    The first 20 minutes of Life is Strange have been posted online for anyone to watch. The opening 20 minutes of Life is Strange set the stage for what kind of game it is. The kind that you’ll probably like if you’re a fan of Telltale games. The video is courtesy of consolewarsofficial and you […]

  • Don’t blame Ubisoft for cancelling keys – blame the culture of overpriced games

    Publishers need to drop PC games prices in order to stem the flourishing grey market, says Matt Martin. “How are you going to sell me Far Cry 4 for £45 when I can pick up Far Cry, Far Cry 2, Far Cry 3, Far Cry: Blood Dragon and extra DLC for just £30?” Some players […]

  • Dragon’s Dogma Online is real, full reveal in this week’s Famitsu

    What’s been heavily-rumoured to be the next instalment in the Dragon’s Dogma franchise, Dragon’s Dogma Online, will be fully revealed this week. According to a recent post by Famitsu, the magazine’s upcoming weekly issue, which releases January 29, will contain a massive feature on Dragon’s Dogma Online. The magazine will dedicate 18 pages to all […]

  • Valve responds to recent Counter-Strike match-fixing scandal, bans offenders

    Valve has investigated the recent case of match-fixing involving two teams in the Counter-Strike: Global Offensive professional scene and decided to ban those involved from future tournaments. Recent allegations involving match-fixing between iBUYPOWER and NetcodeGuides.com – two of the professional teams that played in Cevo Season 5 – came to light. Valve has took notice […]

  • Having issues playing Grim Fandango Remastered on PS4? Sony is offering help

    Sony has offered a few steps to help those who are having issues with their pre-loaded PS4 installs of Grim Fandango Remastered. A few reports have started to appear online from users who’ve pre-ordered and pre-loaded Grim Fandango Remastered on their PS4 consoles. Sony has since posted a support thread on the official forums, to […]

  • Get Dragon Age: Inquisition for $36 and more in EA’s Xbox One sale

    Many EA digital games are being offered at considerable discounts on Xbox One right now. The latest EA sale is pretty good, offering sales on many AAA titles. It’s only available on Xbox One, with extra savings for Xbox Live Gold subscribers. The list below covers prices for Gold Subscribers. Plants vs. Zombies: Garden Warfare […]

  • Grim Fandango Remastered reviews round-up, all the scores

    Grim Fandango Remastered is a classic game brought into the new generation, so it’s time for everyone to know how great it is. The reviews for Grim Fandango Remastered have started popping up and as per usual, we’ve collected a few of them below. Grim Fandango Remastered is, as the name suggests, a remastered version […]

  • The Witcher 3: latest build is 1080p on PS4, 900p on Xbox One

    The recent preview build of The Witcher 3: Wild Hunt was running at full-HD resolution on PlayStation 4 and 900p on Xbox One. German website Gamestar attended the recent preview event for The Witcher 3 and examined the three versions that were on offer, PC, PS4 and Xbox One. Here’s the quote, courtesy of Google […]

  • Joystiq is likely to close – rumour

    AOL is rumoured to be closing its video game site, Joystiq. Re/code is reporting that AOL is likely to close its video game site Joystiq soon, according to “various sources.” The move is part of a company-wide restructuring that will affect Joystiq and other “under-performing content properties.” Joystiq is one of the most renowned sites […]

  • The Last of Us movie will be “pretty faithful” to the game

    The Last of Us will bring many of the same elements to the big screen as the small one, according to writer Neil Druckmann. Although The Last of Us will have to be adapted in various ways to make the transition from lengthy interactive adventure to cinema-friendly story arc, Druckmann is hoping to keep the […]

  • Microsoft is fixing Xbox One’s slow controllers

    Xbox One control pads have many charms, but quick start up is not one of them. The Xbox One controller currently takes up to five seconds to connect to your console after switching on, which is an eternity for someone with an attention span as short as mine. Luckily, Microsoft is working to fix this […]

  • Lucius 2 releases on Friday the 13th (of course)

    Lucius 2 has a really fitting release date. Lucius developer Shiver Games has produced a follow-up to the dark tale of an evil child, and it’s coming your way on February 13 – which just so happens to be a Friday. Lucius 2: The Prophecy will set you back $20, and release through Steam. As […]

  • Saints Row 4: Re-Elected PS4 recalled in Australia, incorrect content to blame

    Saints Row 4: Re-Elected has been recalled in Australia due to a mysterious manufacturing issue. An Australian PR representative said that the retail PS4 version of Saints Row 4: Re-Elected has “a serious manufacturing issue” and has been recalled nation-wide. Here’s what we were told (emphasis mine): “A manufacturing issue has caused an incorrectly classified […]

  • The Whispered World follow up now coming to PS4, too

    Deadalic’s gorgeous-looking adventure Silence has been confirmed for a fourth platform. Originally announced for Mac and PC with an Xbox One port one revealed at a later date, Silence is now on its way to PS4 as well. All versions are due later this year. Silence is Deadalic’s first multi-platform release and in my mind […]

  • Mythbusters to tackle DOOM this weekend

    DOOM is the subject of the next episode of Mythbusters. Having been airing for over ten years now, Mythbusters has pretty much run out of myths to bust, which is why we find ourselves in 2015 with an episode dedicating to answering the question “could DOOM be real?” Bethesda has rveealed that the January 31 […]

  • Destiny hosting a Bungie Bounty – go go go

    Destiny players have a chance to take down Bungie employees in return for one of the most exclusive vanity items in the game. Destiny’s Bungie Bounties usually feature guests from the community, and today’s event is no exception. Joining Bungie community manager David “Deej” Dague are several members of Bungie.org, the developer’s most staunch fan […]

  • Elite: Dangerous developer issues lay-offs

    Elite: Dangerous team Frontier Developments has had to let staff go. At least 15 staff have been laid off from the developer’s Halifax studio. According to an investor update, this decision will allow Frontier to focus its efforts at its primary studio in Cambridge, England. “With its business emphasis now on two major self-published franchises, […]

  • Dragon Age: Inquisition tavern songs free for a limited time

    Dragon Age: Inquisition tunes can be yours for the bargain price of zero cashmoney. The tavern songs from Dragon Age: Inquisition will be made available for purchase from various digital distributors sometime after February 9. Until then, though, you can have them for free – including their sheet music. To take advantage of this generous […]

  • Even the Five Nights at Freddy’s 3 teaser is frightening

    Five Nights at Freddy’s 3 is probably going to be just as tense and uncomfortable as its two prequels. This teaser for Five Nights at Freddy’s 3 is the first we’ve heard of the project since creator Scott Cawthon confirmed it is in the works. The third entry in the series is now up on […]

  • 6.6 million Xbox consoles shipped last quarter

    Xbox One and Xbox 360 console sales were strong last quarter, although Microsoft isn’t talking hard numbers yet. Microsoft shipped 6.6 million Xbox 360 and Xbox One consoles to retailers in the quarter ending December 31, the company revealed in its latest financial briefing. This figure wasn’t broken down by platform, and Microsoft didn’t supply […]

  • Homeworld Remastered Collection: five minutes of b-roll footage

    We may not have proper, uncut gameplay footage of the Homeworld Remastered Collection, but we have the next best thing. Homeworld Remastered Collection was confirmed to release on February 25. Gearbox has only showed a trailer, but no extended gameplay demos. There was however a b-roll video showing at PAX South, and we’ve embedded it […]

  • Grim Fandango Remastered looks sharp in these new screens

    Grim Fandango will come back from the dead with the Remastered edition, and it’s looking great. Grim Fandango Remastered has a few new screens available to prove that even old games can look stunning with the right remaster, especially ones with an already well-defined art style. Have a look at them below and get excited. […]

  • Battlefield Hardline: beta weapons, maps, modes, progression system and more

    The Battlefield Hardline beta will include a third new map and a new game mode, on top of what’s already announced. You may remember last week DICE started a community mission for all Battlefield 4 players. The goal was to reach 2 billion points playing Rush mode. That goal has been achieved and as a […]

  • Dying Light launch trailer is one last display of its forte

    The launch trailer for Dying Light is here one day ahead of the game’s release. Techland and Warner Bros. have put out the launch trailer for Dying Light. The trailer is a short reminder of the game’s main selling points: free-running, weapon crafting, drop-kicking zombies. Reviews should start to come out tomorrow for the game […]

  • Watch The Witcher 3 developers stream new gameplay on Twitch

    The Witcher 3 developer CD Projekt RED is hosting a Twitch live-stream to show off brand new gameplay footage and answer some fan questions. The live-stream will start at 7:00pm GMT, 2:00pm EST, 11:00am PST. It will show off plenty of new footage, some of which was shown only to the press so far. The […]

  • Finally, some screens for Final Fantasy 15

    Patience is a virtue and we finally have our hands on a few gameplay screens from Final Fantasy 15. There’s not a lot of them, but they show the impressive lighting and they’re all gameplay as far as I can tell, so take a look. There is no release date for Final Fantasy 15 as […]

  • Here’s 15 minutes of gameplay from The Witcher 3: Wild Hunt in 1080p

    The Witcher 3 has a new direct-feed, 1080p video available that’s 100% gameplay. Would you like some gameplay of The Witcher 3 in beautiful 1080p? Why, of course you would! The gameplay below shows combat, conversations, travelling. In short, it’s a small sample of everything the game will offer. If you’re looking to learn much […]

  • Two Mortal Kombat X characters to be revealed this week

    Mortal Kombat X will get not one, but two character reveals this week. Mortal Kombat creator Ed Boon has been at again on Twitter, teasing all kinds of reveals over the past few days. Firstly, Boon tweeted this image, which at first glance appears to show a character holding a bow. However, further examination by […]

  • Planetside 2 successfully claims the Guinness World Record for biggest FPS battle

    The Planetside 2 community has successfully organised an online battle involving over 1000 players, breaking the previous Guinness World Record. The event, which was organised by Planetside Battles was pitched to the community last week. 1,158 players have answered the call, smashing the record for “Most Players Online in an FPS Battle.” The previous 999 […]

  • Microsoft aiming for Xbox One-to-PC streaming to function while you watch TV

    Streaming Xbox One games to PC while you watch TV on the console through the HDMI pass-through is something Microsoft is hoping to achieve when the service launches with Windows 10. Microsoft’s Phil Spencer has been on Twitter answering fan questions following last week’s Windows 10 event. One interesting bit that came out of those […]

  • Everything we know about The Witcher 3: Wild Hunt

    The Witcher 3: Wild Hunt is sure to be one of the biggest RPGs of the year, due for release in May on PC, Xbox One and PS4. Delayed since its target release of 2015, CD Projekt Red’s latest game takes the series to a true open world environment, and charges the player with tracking […]

  • Battlefield Hardline beta date leaked – rumour

    According to an email sent to some YouTubers, the upcoming beta for Battlefield Hardline is scheduled for February 3. The date for the Battlefield Hardline beta is believed to be February 3. It comes from an email that’s been sent by Ronku to various YouTubers reminding them of the starting date, February 3. Ronku is […]

  • The history of The Witcher: beyond the Road With No Return

    We take a look at The Witcher franchise, from the original short stories to its blockbuster video games. The world was first introduced to Geralt through a set of short stories called The Witcher (English translation) written by author Andrzej Sapkowski. The first short story was published in the Polish fantasy and science fiction magazine […]

  • Bringing The Witcher 3: Wild Hunt to life

    In The Witcher 3: Wild Hunt, CD Projekt RED takes a whopping enormous map and fills it with stuff you actually want to see and do. Do you remember back before Oblivion came out there was a lot of chat about how much more lifelike and realistic the NPCs would be? Rather than just hanging […]

  • The big Witcher 3 questions answered: delays, playing as Ciri, and why enemies don’t scale

    Spending some time with The Witcher 3 level designer Miles Tost we were able to put some of our immediate questions to him after playing the game for over 4 hours. “That sense of improvement doesn’t happen if the monsters around you remain the same strength, there’s no sense of achievement.” Tost is a relaxed […]

21 Comments

  1. DSB

    RIEDC pooped on the carpet. It’s really little wonder that they don’t want to own it.

    #1 1 year ago
  2. Luciferous

    Not surprising at all. I’ve been thinking something like this was happening right from the get go.

    It always felt like they had given them the loan and then instantly demanded it back without giving 38 Studios a chance to recoup earnings from Amalur. I hope the dicks responsible are found guilty of ruining a promising company.

    #2 1 year ago
  3. DSB

    @2 They did get the chance though. A 75 million dollar backing from the state.

    The game didn’t sell, and Chafee, who said the deal was bad even before it was signed, didn’t feel like floating them even more money, so they could make another (and vastly more expensive) game that likely wouldn’t break even either.

    So he pulled the plug. If you have good cards, you play. If you have bad cards, you fold. That has to be the rule when you’re playing with other peoples money, which is obviously what Rhode Island was doing.

    It’s really too easy to just blame “the man” here. Chafee may be a politician, and that’s obviously one point on his douchebag account, but if you look up his predecessor, who made this deal based on what was at best mindless optimism and a lust for prestige, you’re looking at an entirely different league of asshole.

    I think Curt Shilling meant well, but his game just wasn’t good enough. Carcieri on the other hand was just your typical grandstanding political swine.

    Can you imagine how many firefighters, cops and teachers you could pay for with 120 million dollars? It’s a lot. Instead it was wasted on an untested business, so Carcieri could wave his dick around and say “I bring high tech jobs to this state”.

    #3 1 year ago
  4. FrankWhite

    Yeah, this was always about politics. Most developers and publishers have financial troubles and find ways to work their way out of it. 38 Studios never had the chance though. If the people involved were smart they would have realized that getting the MMO to launch day was the top priority. They could have ended up making back a lot of money if the game ever launched, now they have 75+ million in debt and only the husk of a disgraced IP to try and auction off.

    Bad business, bad politics. Nothing was more important than making it to launch and recouping the investment money, but the governor wanted to say “I told you so” and now Rhode Island gets to hold a bunch of debt.

    #4 1 year ago
  5. sebastien rivas

    first question first,

    Given/Provided loans by public organization should not be allowed!
    Maybe a funding but certainly not a loan.
    They may have no choice but to keep 38 Studios Solvent or the money will just be gone in smoke, though it can only be solvent if something is done for more attractive games or perhaps at least better PR/marketing which I assume the game sorely suffered from. After all, I never heard of Amalur unless we speak perhaps of a game made on X386 like 32 years ago…

    @3 +1 for your last paragraph.

    #5 1 year ago
  6. DSB

    @4 How didn’t they though? Until they declared bankruptcy, they had every opportunity to secure funding.

    Of course it’s easy to claim that Chafee was the reason why they were rejected by the people they spoke to, but come on. Have you played Amalur?

    The game is about three times bigger than it would ever have to be, it’s not up to snuff, and it didn’t sell well. I personally wouldn’t throw 5 bucks their way, let alone grant them another 75 million dollar guarantee in tax payer dollars.

    Chafee had no motive to see them go bankrupt, unless he thought it was inevitable anyway.

    It seems to me like people are just really reluctant to take responsibility for their actions. The only way your business is gonna survive long term is if it’s succesful, you can’t expect anybody else to just bail you out when it isn’t.

    #6 1 year ago
  7. Iwasthere

    @DSB, First of all, Rhode Island agreed to $75 million, but they only released $49 million. Reckoning, on the other hand is still in Walmart and Gamestop for full price. Last accounting indicates Reckoning has sold somewhere between 3-5 million units worldwide including online. Check practically any game site and you’ll find overwhelming approval for the game. No one has said the game was a failure EXCEPT Lincoln Chafee. He gets to play the I told you so card, the only card being played.

    #7 1 year ago
  8. DSB

    @7 It doesn’t matter if it sold 50 million. It obviously wasn’t enough to make 38 Studios a viable business.

    If a company defaults after receiving 49 million of a 75 million payout, you’re saying you want to give them the whole thing? This is also failing to include the money raised using the guarantee they were given, which with fees and interest adds up to 112 million dollars.

    What kind of madness is that?

    It seems to me like people just expect Rhode Island to keep throwing tax payer dollars (which the state badly needs) after a videogame company, simply because it’s a videogame company, and we like videogames.

    To hell with whether that videogame company is actually worth a damn, or anyone sees a return on that investment.

    It just strikes me as unbelievably naive.

    … And again, why on earth would Lincoln Chafee seek to undermine his own states investment? Is he 38 Studios evil stepmother? Are we in a Disney movie?

    #8 1 year ago
  9. PancreaticDefect

    Kingdoms of Amalur is a good game. It’s a shame that the company imploded. I dont know much of what went on behind the scenes, but if a studio could survive based on the quality of their product alone, this company would still be around today. I dont know where the money for Amalur goes anymore (probably EA), but everyone should buy a copy. This is one instance where a developer deserved better.

    #9 1 year ago
  10. Sylrissa

    Yeah I remember EA being quite happy with the sales of Amalur, and saying that they easily got back the money they put into the project.

    #10 1 year ago
  11. DSB

    Facts, facts, facts.

    http://www.ign.com/articles/2012/07/13/38-studios-executives-testify-in-bankruptcy-hearing

    http://www.shacknews.com/article/73968/kingdoms-of-amalur-needed-3-million-sales-to-break-even

    As I see it there were two problems. Curt Schilling got put to the wall by EA in the deal they made. That’s purely his own fault for failing to negotiate a proper deal.

    So Amalur needed to sell 3 million just to break even, and it didn’t even sell 2. This is primetime sales, not tail end. Bread and butter sales.

    But that, coupled with the fact that they were unable to pay their bills, should really tell you something about their viability.

    … And then you play something like Kingdoms of Amalur. The game is fucking huge! Content costs money, even if it’s mediocre. I would wager that they could’ve made half the game and survived.

    What were they thinking? You’re a new studio, you’re untested. You’re doing your first project, and you make a pseudo-MMO colossus, and expect it to sell around 5 million?

    Nuts!

    #11 1 year ago
  12. PancreaticDefect

    Thats true. The game was enormous. I love it and I’ve never even completed it and I’ve played 135 hours of the game across two characters. It’s a shame that ambition overwhelmed this studio. I sure wish I’d sprung for the collectors edition. It would be a gem in my collection.

    #12 1 year ago
  13. Iwasthere

    As usual, there’s always someone ready to jump in and offer their WRONG opinions, and clamor for facts. Rhode Island promised $75 million because they were aware that was how much was needed. Curt Schilling had already put in $50 million of his own money and personally borrowed more. Then the state withheld one third to protect investors, many of whom remain anonymous even after Freedom of Information requests. The state placed impossible hiring practices on top of that. When the governor refused to talk except to publicly condemn the studio and Reckoning, investors quietly disappeared, because “why would the Governor not want to help”? If you knew Rhode Island, you’d understand the political climate that made Chafee look like he knew it was a mistake. The Providence Journal reporter was at the front door questioning employees about missing payroll the day BEFORE pay day. Where would she get that “tip”? There was never a “bad check” given to RI as reported. No grace period was extended to make the payment (it was paid but not reported) Rhode Island lost 300 well paid tax paying, home buying, economy boosting citizens so Chafee could crow “I told you so”

    #13 1 year ago
  14. DSB

    @13 Tell us about the impossible hiring practices.

    Considering the testimony by Rich Wester, you’d need Copernicus to be a hit making 100 million a year if you were ever gonna pay it back.

    After making one failed game, why would the state of Rhode Island have any faith in that projection?

    No doubt that politics are dirty and that Chafee would’ve been orchestrating the press left and right, that even happens at the city council level, but that’s what you contend with when you get in bed with the government.

    It is sad for everyone involved though.

    #14 1 year ago
  15. FrankWhite

    @DSB you seem to genuinely believe that Rhode Island and investors cutting their losses was the best move. It was literally the worst business choice they could make. They never got their main product to the marketplace, that needed to be the priority. It would have been a better business choice to secure an additional 10-20million in investments to make sure the MMO actually launched. Not only would the launch day sales have recouped a lot of the investment money, but MMOs have multiple revenue streams, both subscriptions and microtransactions.

    No offense, but the state of RI cutting their losses out of fear at the time they did MAXIMIZED their loss. A better business choice would be to make sure the product reached the market place (I’m not saying it would be a great game, it would, like most MMOs, launch in an unfinished and unpolished state) but the fact is, spending all that money and getting nothing to the marketplace is literally the worst case scenario. They cut their losses too soon out of the kind of fear and skepticism that you are displaying. They needed to recognize that there is more money to be made and recouped from sticking with the investment than cutting it off too soon.

    It is sad, because I bet 38 Studios could have secured more investing if Governor Chafee had not been publicly condemning the project during the investment negotiations. We’ll never know if investors would have invested or not without Chafee’s remarks because he chose to run his mouth at the worst possible time.

    But really, even bad MMOs like Age of Conan, War Hammer, LOTRO, SWTOR, have all made back their investments and even made a profit after launch day sales, months/years of subscriptions, F2P/Freemium and microtransactions.

    An MMO has multiple revenue streams and the choices that were made means RI never got to see any of them. It was the wrong choice and they maximized their debt because of it.

    #15 1 year ago
  16. DSB

    @15 I could maybe see why you’d take that chance if you were a big corporation, but this is the state of Rhode Island. It’s not their money, it’s the money of every tax paying citizen, family and business who lives in the state. They worked hard for that, and the very least that they should be able to expect from their state, is that they don’t gamble with it.

    You’re making all these assumptions about profitability, for a studio with no track record, when they’ve already flunked one game. They were 50% away from even breaking even, and obviously even further from making a real profit. So how on earth do you get that confidence? I played Amalur, and I personally have no problem understanding why it failed.

    You’re assuming that they maximized their loss, but that’s only true if Copernicus would’ve been a success. Why would it be? Even EA can’t get away with making mediocre MMOs, even when they slap one of the worlds most popular brands on it.

    And if it was truly set to reap the world wind, then why would anyone care what Chafee said? Fund the damn thing and take the profit. I think the real truth is that things were a bit more complex than that. I’m guessing the companies looking at the investment didn’t see that much value either.

    Another question for the taxpayer is where they’d like their government’s focus to be. Should they really be spending their limited time co-running games developers? To me the whole project just seems completely reckless and unneccessary from the get go.

    I can maybe understand putting up a bank guarantee (although for an untested games developer? Not bright) but at the very least 38 Studios should be able to prove that they can get that funding on their own. Once the state had to subsidize them just to keep them going, alarm bells should’ve gone off in my opinion.

    It’s just too easy to say “Eh, Chafee was against it, let’s blame him” when you’re looking at an unprofitable studio with rookie management, begging for more money on the other end.

    Could Chafee have done more? Yes. Would it have been in the interest of tax payers? I don’t see how you can guarantee that.

    #16 1 year ago
  17. Iwasthere

    @DSB, your entire premise is flawed from the beginning. The taxpayers of Rhode Island never put one penny into 38 Studios. The EDC sold bonds paying a guaranteed 6-7% interest. 38 Studios purchased a $500,000 bond guaranty program. The politicians in Rhode Island decided to not place a claim under the insurance. Why? The taxpayers were under NO OBLIGATION to pay a cent. Once the General Assembly voted to begin payments instead of using the paid for insurance, taxpayers assumed liability. Most of the bondholders were large corporations like USAA insurance, but even after securing a list of investors via Freedom of Information Act, 6-7 million dollars were invested and names of investors still will not be released. 7% guaranteed interest for 7 million dollars gives 7 million reasons why the names won’t be released. Do your own investigation like I did and you’ll see why the politics of Rhode Island killed 38 Studios.

    #17 1 year ago
  18. DSB

    @17 You’re missing a lot of context there. For the second time, feel free to clear things up. It’s an interesting story.

    Are you claiming that USAA and the others managed to convince the state of Rhode Island to put the entire loss on the public? That’s some claim. Might want to tip a journalist on that if you have anything concrete, or do the story yourself and sell it. That’s gold, if you can prove it.

    Every source I can see references it as a taxpayer backed loan. Which they may not be obligated to pay, but if they don’t, then their word no longer holds any value with anyone.

    #18 1 year ago
  19. DSB

    Here’s some interesting reading if you want an overview:

    http://www.bostonmagazine.com/2012/07/38-studios-end-game/

    http://www.nytimes.com/2013/04/21/business/curt-schilling-rhode-island-and-the-fall-of-38-studios.html

    Until I read those I was really just guessing. Now I’m about 90% sure I’m right on the money here.

    If you have a smoking gun Iwasthere, produce it. Because what you’re suggesting really doesn’t jive with what’s out there.

    #19 1 year ago
  20. Iwasthere

    USAA nor any other investor needing convincing, the state of Rhode Island, on their own, decided NOT to put in a claim for a paid up insurance policy that was required when the deal was made. There was a protracted argument in the legislature, but the decision to assume responsibility came from Speaker Fox who controls the 92% Democrat house.
    as to the bondholders released under the FOI : http://www.wpri.com/news/politics/state-politics/docs-reveal-who-bought-38-studios-bonds

    #20 1 year ago
  21. Iwasthere

    Everyone should then read this, about how the other investors names are still being hidden”http://www.politifact.com/rhode-island/statements/2013/apr/08/jim-taricani/jim-taricani-says-38-studios-bond-offer-promised-a/

    #21 1 year ago

Comments are now closed on this article.

  • The Witcher 3 sets a new generational standard for graphics

    The Witcher 3: Wild Hunt is the new standard in outrageously pretty. “The Witcher 3 is more than just eye-candy. Destiny, once the loveliest thing I had ever looked upon, has been outclassed.” The Witcher 3 is even better looking than the screenshots would have you believe, and until you see it in motion, running […]

  • The Witcher 3: hands-on with the RPG of the year

    Getting to know a bawdy hero; Geralt of Rivia’s third outing is accessible, untamed, and dripping with story. Warning: some spoilers are inevitable. “The Witcher 3 is horror and violence. It’s charming, witty and cheeky. Like Geralt, it knows what it wants and it’s going to grab it with both hands.” The Witcher 3: Wild […]

  • Borderlands: The Pre-Sequel gets Lady Hammerlock DLC tomorrow

    The Lady Hammerlock DLC for Borderlands: The Pre-Sequel will be released on PS3 and Xbox 360 tomorrow, January 27. The new playable character comes with three skill trees and the action skill Cold As Ice. If you haven’t bought the season pass for Borderlands: The Pre-Sequel you can download the DLC for $9.99, you lucky […]

  • A limited edition 20th Anniversary PS4 just sold for $128,000

    Sony has just auctioned one of its limited edition 20th Anniversary PS4 consoles for over $128,000. The model had the serial number 00001, according to the Wall Street Journal. “We appreciate all who participated in the auction and are surprised at the highest bid price, which was higher than our expectations,” said a rep for […]

  • Here’s Killer Instinct’s new Omen and Golem fighters in action

    Microsoft has revealed Killer Instinct Season 2′s fighter Omen in a new trailer. Stick around for the end of the video and you’ll also get a peek at another new fighter, Golem. Omen is a bonus character and as such isn’t available as part of the main season roster. He’s available for free to Ultra […]

  • Digital copies of Far Cry 4 are being deleted from Uplay

    Ubisoft appears to be deleting copies of Far Cry 4 bought through digital third-party retailers. According to the Ubisoft support forums, copies of the game acquired via G2Play and G2A are being removed from Uplay. Users had not been given any warning by publisher Ubisoft that the game will be removed, although it is now […]

  • Gearbox wants “badass” talent for the next Borderlands

    Borderlands 3 may not have been announced at PAX this weekend, but studio boss Randy Pitchford is currently recruiting for the next game in the series. We are recruiting for next Borderlands. This is the big one. Industry badass? E-mail me: heyrandy@gearboxsoftware.com pic.twitter.com/ZG9dLytX1B — Randy Pitchford (@DuvalMagic) January 26, 2015 A recruitment push would suggest […]

  • Destiny: less grind, fairer economy in House of Wolves DLC

    Destiny developer Bungie has said it aims to lessen the grind in House of Wolves, and it won’t repeat mistakes it made with rewards in The Dark Below. Gear rewards will be fairer, according to lead designer Luke Smith in a Neogaf thread. For example, buying from a vendor should not invalidate gear rewarded for […]

  • Halo: The Master Chief Disaster

    Over two months since release and Xbox One’s big Christmas game is still a turkey, says Rich Stanton. “The game has now been available for two-and-a-half months, including the blockbuster Christmas season, and by any reasonable standard it doesn’t work.” Halo: The Master Chief Collection launched worldwide on November 11, 2014. Intended as something of […]

  • Homeworld Remastered Collection dated, first gameplay footage released

    Homeworld Remastered Collection has a release date, and as promised, the gameplay footage of Gearbox Software’s remake has been released along with the news that Homeworld Shipbreaker development continues. The video was shown during the Inside Gearbox Software panel earlier this morning at PAX South. Last year, Gearbox had said hoped to release the title […]

  • Clock Tower spiritual successor Night Cry has landed on Kickstarter

    The Kickstarter for Clock Tower spiritual successor, Project Scissors, recently announced as Night Cry, has launched. A teaser directed by The Grudge director Takashi Shimizu was released for the game earlier this month, and the full short film can be viewed below. Shimizu is also creative director on the project and Silent Hill creative and environment […]

  • Toukiden Kiwami mission trailer released, pre-order bonuses detailed

    Pre-order bonuses for Toukiden Kiwami have been announced for PlayStation 4 and Vita. Here’s the pre-order bonus list for each participating retailer: North America GameStop – Armor inspired by new slayers Reki and Soma’s costumes and classic armor from Toukiden‘s six original NPC slayers. Amazon – 2 exclusive pieces of armor: a set of Tenko […]

  • More Final Fantasy Type-0 HD, Final Fantasy 15 info doled out by Tabata

    Final Fantasy Type-0 HD director Hajime Tabata took part in a Reddit AMA yesterday, and answered a variety of questions pertaining to the game and Final Fantasy 15. According to Tabata, the first playthrough of the game will last around 40 hours, but “the real fun” starts from the second playthrough which contains new events. […]

  • This video gives you an idea of what Borderlands Online is like

    A video for Borderlands Online, the China-exclusive title from 2K, Shanda Games and Gearbox, has been released. Posted on MMO Culture, the video was released to announce the “technical test” which started today. Borderlands Online is an instance-based online shooter, and will probably never reach western shores. Still, you can have a look anyway.

  • Guild Wars 2: Heart of Thorns is the MMO’s first expansion

    The first expansion for Guild Wars 2, Heart of Thorns, was announced today during PAX South, and ArenNet has posted a few content details for it on the official webiste. Heart of Thorns contains a reimagined progression with the new Mastery system, which provides new training opportunities for characters beyond level 80. Players will be […]

  • Turn-based action platformer Ronin has been polished up, nets a publisher

    Tomasz Waclawek has polished up his freeware title Ronin and will be releasing it through publisher Devolver Digital later this year. The turn-based action platformer stars a vengeful ninja who is determined to kill important memebers of a powerful corporation. Weapons at your disposal include razor wire and a katana, or you avoid combat by […]

  • Footage of cancelled Justice League brawler surfaces

    Footage of the cancelled Double Helix-developed Justice League brawler has surfaced online. The game was supposed to be a tie-in title for the also cancelled Justice League film directed by George Miller, according to leaked images and information from 2012. Jon Gwyn, the game’s artist and now Rockstar San Diego staffer, said at the time […]

  • Free Icona Vulcano DLC for DriveClub releases next week

    Sony has posted a video of the Icona Vulcano, which will be released as DLC next week for DriveClub. The video was posted on Facebook and we’ve embedded the video below courtesy of GamesHQMeida. It was announced earlier this week the Icona Vulcano would be released on the PS Store as a free download.

  • The Bard’s Tale 4 announced by inXile Entertainment at PAX South

    The Bard’s Tale 4 was announced today by inXile Entertainment CEO Brian Fargo during a panel at PAX South. inXile hinted around back in December that a sequel was in the works. Granted, The Bard’s Tale wasn’t mentioned. Still, everyone figured this was the game when Wasteland 2 project lead Chris Keenan stated the team […]

  • Here’s another Majora’s Mask 3DS vs N64 comparison video

    Last week, YouTube user Master0fHyrule uploaded a Majora’s Mask 3DS vs N64 comparison video, and we’ve embedded it for you below. The video shows 4.5 minutes of footage which appears before hitting the start button and the first meeting between Link and the Skull Kid. Another comparison video was released by another user back in […]

  • The Game Awards 2015 already in the planning stages

    The Game Awards 2015 are already in the planning stages, according to Geoff Keighley. The inaugural show took place on December 6, 2014. Keighley announced the 2015 show during his Storytime with Geoff Keighley panel at PAX South this weekend and through Twitter. He said more details will be announced in the spring. You can […]

  • Fahrenheit: Indigo Prophecy Remastered listed for January release

    It looks like Quantic Dream’s Indigo Prophecy is returning in remastered form next week, if an Amazon listing is any indication. According to the listing posted on NeoGAF, the uncut version of the game contains Steam DRM and will release January 29 at 12pm PST/3pm EST for a Linux, Mac and PC download. Titled Fahrenheit: […]

  • Indie Flash Sale kicks off on North American PS Store

    The North American end of the PlayStation Store is hosting a Flash Sale a beefy list of indie games and some films. The sales includes titles such as Resogun, Shadow Warrior, The Unfinished Swan, FEZ, Costume Quest 2, Joe Danger, Brothers: a Tale of Two Sons, and more for up to 80% off. The full […]

  • The Witcher 3 Twitch stream to show 15 minutes of new gameplay footage

    New The Witcher 3: Wild Hunt gameplay footage will be shown Monday, January 26 on GOG.com’s Twitch channel. Along with the footage, the developers will be answering questions from the community as well as providing commentary on the gameplay being shown. Live questions posted via Twitter chat will be answered by senior gameplay designer Damien […]

  • Borderlands 3 information teased for tomorrow’s Gearbox PAX South panel

    During PAX South this weekend, Gearbox Software is hosting a panel titled Inside Gearbox Software which will provide “the latest news and updates on Borderlands and upcoming Gearbox titles.” Yesterday during Gearbox’s panel called Question and Answer Time, CEO Rady Pitchford was asked “when or if” fans can expect Borderlands 3. “I’ll tell you what,” […]

  • Best Buy cancels multiple pre-order units of Limited Edition Majora’s Mask New 3DS XL

    Multiple sources reported overnight Best Buy has cancelled some pre-orders for the Limited Edition Majora’s Mask New 3DS XL. As of press time, it appears to only affect those who pre-ordered more than one system. Only one system was allotted per order, so the cancellation notices were sent out to comply with the restriction. Those […]

  • Rob Huebel is your KillCameraman in this CoD: Advanced Warfare video

    A live-action video for Call of Duty: Advanced Warfare – Havoc has been released by Activision. Subtitled: Randall Higgins: KillCameraman gives you a look at the action from a different perspective. In the video, Higgins is played by comedic actor and writer Rob Huebel (Children’s Hospital, Parks and Rec, The Mindy Project). The first DLC […]

  • Xbox App features included with Windows 10 January build outlined

    The January build of the Windows 10 Technical Preview includes a basic version of the Xbox App announced earlier this week. With the initial preview release, the team at Microsoft wanted to only include the basics such as high resolution monitor support along with keyboard and mouse input. Additional functionality will be released with each […]

  • Standalone version of DayZ has sold 3 million units

    The standalone version of DayZ sold 3 million units, Bohemia Interactive has announced. Release Just over a year ago on Steam Early Access, the milestone was hit yesterday. The standalone version was created by Dean Hall as a Arma 2 modification which has been updated 24 times since its initial release. In 2014, the development […]

  • The Witcher 3: Wild Hunt video shows gameplay clips, global hands-on events

    CD Projekt has released a video for The Witcher 3: Wild Hunt, giving a glimpse of gameplay and noting that hands-on impressions of the game will be bombarding the Internet next week. We’ll have extensive coverage of The Witcher 3 on Monday Jan 26 at 3pm GMT. The Witcher 3: Wild Hunt is coming to […]

  • Microsoft looking into possible HoloLens support for PC, Xbox One

    Microsoft’s HoloLens may be a dedicated device, but the company is obviously looking into how it could be used with PC and Xbox One. Speaking with Polygon, Xbox boss Phil Spencer said should the stand-alone product become a success, “specific scenarios” on how it could be used with Xbox One are already being brainstormed. “We […]

  • Final Fantasy Type-0 HD video compares PSP graphics to PS4, Xbox One

    A video for Final Fantasy Type-0 comparing the upcoming console version of the game to the original PSP version has been released by Square Enix. While comparing PSP graphics to those of PlayStation 4 and Xbox One seems rather unfair, it’s worth a watch anyway. Final Fantasy Type-0 HD releases March 17 in North America […]

  • Payday 2′s The Bomb Heists and Dragan Character Pack released

    In case you forgot, The Bomb Heists and Dragan Character content packs for Payday 2 were released yesterday. The new heist pack is available for $6.99/€6.99/£4.99 and the Dragan character will run you $4.99/€4.99/£3.99 through Steam and other digital distribution sites. Here’s the details: The Bomb Heists A new contact, called the Butcher, brought to […]

  • Rockstar offers tips on scaling GTA Online creations to support 30 players

    Rockstar has posted a tutorial of sorts on how to edit your GTA Online’s creations to support up to 30 players. According to the developer, when selecting Load Creation, users will be able to access any previously published Jobs and edit them in any way they wish. Users can also increase the Maximum Players races […]

  • Video for Life is Strange shows you how to rewind time

    If you could rewind time, would you change the events of your day or leave things be? In Life is Strange, you will make this choice. In the developer diary below, Dontnot Entertainment touches upon the main character’s ability to rewind time. How Max’s ability works and originated is also discussed. The first episode of […]

  • Take a look at one of the historical battles in Total War: Attila

    The Creative Assembly has revealed historical battles for Total War: Attila and shown off one of them. In the latest episode of Rally Point, developer Creative Assembly takes a look at one of the nine historical battles that will be included in Total War: Attila when it launches next month. But before you see the […]

  • ARMA 3 video lists 33 of its features, teases upcoming expansion

    ARMA 3 is an impressive military simulator, but that’s not the only thing impressive about it. In fact, this video lists 33 of the game’s most notable features. ARMA 3′s latest video gives you a tour of many of its strengths. It goes over the number of vehicles, weapons and playable area. But that’s not […]

  • No Man’s Sky dev explains what you actually do in the game

    No Man’s Sky is simultaneously the most intriguing mystery and the most scary. Developer Hello Games is asked some questions and gives some solid answers. Eurogamer asked Hello Games’ Sean Murray a number of questions that are on everyone’s mind when they think about No Man’s Sky. The biggest one being, what do you actually […]

  • Dying Light physical release set for February 27, Be The Zombie mode goes free

    The release date for the physical version of Dying Light has been confirmed for Europe, along with the release dates for all regions. Dying Light developer Techland has confirmed that the PC version of the game will release digitally, worldwide, on January 27. The physical version and the digital PS4 and Xbox One versions will […]

  • Guild Wars 2 is $10 this weekend

    ArenaNet is offering Guild Wars 2 for $10 this weekend only, and hosting a double XP event during the same period. The regular and Digital Deluxe editions of Guild Wars 2 are both offered at 75% off this weekend. The regular edition can be yours for just $10 while the Deluxe is $15. The offer […]

  • Cyberpunk 2077 development still going, but the focus is on The Witcher 3, says dev

    If you’re dying to hear anything about CD Projekt Red’s Cyberpunk 2077, you’ll be waiting a while still. The focus is on The Witcher 3 right now. Ever since Cyberpunk 2077′s announcement all the way back in 2012 developer CD Projekt Red has been really quiet about the sci-fi RPG. We’ve not seen any gameplay […]

  • Digital pet Animin gamecards get May release

    With AR being all the go, it might be worth checking out virtual pet Animin for iOS and Android. Game-cards for Animin, the virtual pet for iOS and Android, are set to appear at UK retail this May, the developers have announced. Animin sits on your touch device and does cute stuff. The little dude […]

  • You won’t need a new GPU for DirectX 12, except for some features

    Microsoft has clarified that while you’ll need a new GPU to get the full potential of DirectX 12, existing hardware will support it just fine. Microsoft’s Mike Ybarra said in a press meeting following the Windows 10 event that you will need a new graphics card to get “the full benefits” of DirectX 12. “There […]

  • Assassin’s Creed Victory: fans speculate over characters and locations

    Ubisoft has not yet started talking about Assassin’s Creed: Victory, so some eager fans are speculating about everything they can just from those leaked screens. A very popular thread right now on the Ubisoft forums attempts to gather fans’ specualtion about characters, events and story of Assassin’s Creed: Victory. What followed was quite a lot […]

  • This is what co-op looks like in Dying Light

    Dying Light’s cop-op mode has been given a short demo by developer Techland. Dying Light supports drop-in/ drop-out co-op for up to four players. The entire campaign is playable in co-op, and there are special co-op challenges. Watch as four members of developer Techland take on the game’s zombie apocalypse. Dying Light is out January […]

  • Get Saints Row 2, Saints Row: The Third and all DLC for $5

    Bundle Stars’ latest bundle packs Saints Row 2 and the complete Saints Row: The Third for $5. The Saints Row bundle is priced $5. It is live now and for another 14 days. It comes with Saints Row 2, Saints Row: The Third – The Full Package, which is basically the game plus all the […]

  • Destiny: Xur location and inventory for January 23, 24

    Xur: Agent of the Nine has made the trek to Destiny’s Tower for another week of business. Destiny’s Exotics vendor, Xur: Agent of the Nine has arrived at the Tower as per the weekly schedule. Xur will sell you Exotic weapons and armour pieces if you have the Strange Coins to afford it. He also […]

  • Bloodborne is getting two special edition PS4s in Japan

    Sony will launch two limited-edition, Bloodborne-themed PlayStation 4 bundles in Japan. Two bundles are available, one in black and another in white, complete with a controller and a headset. The hard disk cover is engraved with the title and the cover shot. Both bundles come with the collector’s edition release of the game, which was […]

  • Best Destiny videos of the week – Xur vs Cryptarch rap battle

    Destiny has once more produced a slew of entertaining, educational and occasionally baffling videos. Destiny players have repeatedly sparked crazes by exploiting the game’s little foibles – Sparrow surfing is one example. This latest one is kind of mysterious; I don’t know how it’s done, or why you would want to, but Hidden Reach has […]

  • The Sims 4 free for 48 hours with Origin Game Time

    The Sims 4 is the latest game to be offered free through Origin’s Game Time promotion. The Sims 4 is now free to download from Origin, granting you a 48 hour window to try it out and see if you want to pay for the full game. The free time starts counting as soon as […]

  • Check out Destiny’s new PvP mode, Doubles

    Destiny Crucible players can enjoy a new kind of PvP action with Doubles. Destiny may not be as PvP focused as some Halo fans were hoping, but Bungie is slowly ramping up Crucible support, starting with better Iron Banner events. Some time ago the developer promised to introduce experimental game modes, and the latest Bungie […]

  • Halo: New Blood novel launching digitally in March

    A new Halo novel will explore the backstory of Gunnery Sergeant Edward Buck. Halo: New Blood is a digital-first short novel launching on March 2. The 60,000 word novel was penned by Matt Forbeck, an award-winning author of many licensed fantasy and sci-fi publications. It’s an all-new story, but fans of Halo 3: ODST will […]

  • Destiny players purchased 1.1 million Ice Breakers last week

    Destiny players know what’s hot, and Exotic sniper rifle Ice Breaker is definitely warm. Destiny vendor Xur offered Ice Breaker for sale last weekend, much to the delight of everyone yet to find this terrific bit of gear. According to the latest Bungle Weekly Update, Xur sold 1,143,320 Ice Breakers. He left the tower with […]

  • Dragon Age: Inquisition nets GLAAD special recognition award

    Dragon Age: Inquisition has been honoured for its diverse representation by LGBT advocacy body GLAAD. Dragon Age: Inquisition will receive a special recognition award for “the many complex and unique LGBT characters prominently integrated throughout the game”. GLAAD doesn’t normally honour video games (maybe one day, if we ever have enough that deserve it), but […]

  • The Order: 1886 AR game is full of puzzles

    The Order: 1886 has spawned a new promotional website with lots of info to ferret out. Called The Order Exposed, the new site pertains to be the blog of a missing researcher, who had been hoping to uncover the secrets of the alternate history. This on its own is quite interesting but it’s also full […]

  • Grow Home is the next game to follow Child of Light, Valiant Hearts

    Ubisoft has announced another small passion project in the wake of the success of recent releases. Child of Light, Valiant Hearts: The Great War and Far Cry 3: Blood Dragon are all the products of a new initiative at Ubisoft where the publisher lets key developers rest after big triple-A projects by working on something […]

  • What mysterious reveal is Xbox teasing for May 4?

    Xbox is teasing something we’ll be waiting quite a while to learn more about. Xbox community manager Raj Patel tweeted the following earlier today: Hmm… pic.twitter.com/4wBGu6xsDc — Raj Patel (@Rajio) January 22, 2015 NeoGAF users spotted the morse code in the background of the image, which translates as follows: “Presented by Xbox, 10am PDT, 1pm […]

  • 2011 PSN hack class action settlement claim forms available

    PlayStation Network members affected by the 2011 hack and downtime can now claim part of a $15 million settlement. The PSN was down for months on end in 2011 following a major hack, which resulted in user details being compromised. Sony apologised and provided free games as compensation, but unhappy gamers banded together in a […]

  • Final Fantasy 15 has a true open world

    Final Fantasy 15 doesn’t just have “open world gameplay”, it has a true open world – one continuous stretch of environment. “The world is connected by continuous land,” director Hajime Tabata told Gamespot. “If those areas were disconnected, it would feel distant from reality. You’ll find that you’ll be able to walk or drive or […]

  • Suikoden, Suikoden 2 EU PSN release date locked down

    Suikoden and its first sequel will be available via the European PlayStation Network soon. Suikoden publisher Konami has confirmed a February 4 release date for the two RPG classics. CONFIRMED! #Suikoden I & II EU #PSN release date is FEB 4TH! http://t.co/ObOIvZDJAK pic.twitter.com/aM760R2Gez — Konami UK (@KonamiUK) January 22, 2015 It’s been a long wait […]