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Report - Kingdoms of Amalur developer in financial difficulties

The government of Rhode Island is taking steps to keep a struggling Kingdoms of Amalur: Reckoning developer 38 Studios open, according to a new report.

Speaking to NBC 10, Rhode Island Governor Lincoln Chafee admitted the developer is in financial difficulties.

"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios," he said.

The state government has a strong interest in the company's future because it made a $75 million loan guarantee to establish 38 Studios locally. The developer's financial problems have apparently brought that decision into question.

38 Studios was founded by pro baseball player Curt Schilling in Massachusetts and moved to Rhode Island in 2011, two years after acquiring former THQ studio Big Huge Games.

The studio's first effort was Kingdoms of Amalur: Reckoning, published by EA Partners, which was reasonably well received.

Thanks, GiantBomb.

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