38 Studios is Working on a Game, Apparently, Afterall (Kingdoms of Amular)

[Xilren's Twin]

DLC was released this week.  $10 for a pirate area.  I won't be getting it.  By the time I crossed the water to the second half of the map, my character was a tornado of destruction, there were no new enemy types and I had lost track of the story so I just sprinted through to the end.  My game map tracks my interest levels pretty accurately.

This.  Am finishing up butby level 26 i had basically maxed out all the skills I wanted in my primary tree (magic) and most combat became very trivial.  5 enemies?  Metor swarm.  Yawn.  While i have considered putting points into another tree as i continue to level through the last 2 regions, i dont really feel like i need anything.  I dont even feel like i truly would need any equipment upgrades as I have about 4 items that add to my sorcery skill magic my spells even more ridiculous than normal.  I throw all the purple things i dont use in my house stash - last count i think i have over 60.  That's a pacing problem; a more graceful design would continue the progression curve from start to finish so there is almost something more you can pursue. 

The other part that starts to get repepitive is the dungeon design - the first time you go into a root cave, or ruined fort is nice.  By the 10th one, not so much.
Also, elves still very much annoying from start to finish.
Overall still a good game, but there are definately room for improvements they can take from this first effort.  I also have no idea how well this would translate to an MMO.

[koro]

Well this is happening!

http://www2.turnto10.com/business/2012/may/14/state-38-studios-discussions-ar-1036440/

State officials have been meeting with the video game company owned by former Boston Red Sox pitcher Curt Schilling, Gov. Lincoln Chafee told NBC 10 on Monday.

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

Providence-based 38 Studios was founded in Massachusetts but lured to Rhode Island in 2010 after state officials offered it a $75-million loan guarantee. The state said its backing would help the company bring hundreds of jobs and millions of dollars of tax revenue to the state.

"We're working with 38 Studios on different issues. That's all I can report right now," the governor said.

Calls placed to 38 Studios on Monday were not returned.

Keith Stokes, executive director of the Rhode Island Economic Development Corp., had no comment.

In February, the company released the single-player role-playing game "Kingdoms of Amalur: Reckoning."

According to the NPD Group, 410,000 copies have been sold since its release. The figures represent sales in the U.S. across Xbox 360, Playstation 3 and PC versions of the title.

Stokes was criticized during last year's governor's race for advocating the loan guarantee to bring the company to Providence.

Schilling told NBC 10's Gene Valicenti after the game was released what the taxpayer guarantee meant.

"The only way taxpayers lose is if the company failed," Schilling said.

I'm just a simple country lawyer, so I don't quite get what's going on with this. Is this as simple as 38 Studios being given a massive loan by Rhode Island that they are now having trouble paying back, or is it something else?

[Kail]

Not sure, as far as I can see the loan was approved in 2010 (before Amalur was even released), and aside from that the most alarming thing in the article is the notion that state officials are meeting with the corporate high-ups, which doesn't exactly scream "every man for himself, man the lifeboats" quite yet.  Maybe there's other stuff they're not mentioning or something, I don't get it.

[Tannhauser]

I don't know, that second sentence is a bit alarming.

[Stormwaltz]

WPRI adds this zinger: "38 Studios listed 18 job openings on its website as of Monday evening. It’s unclear whether rank-and-file employees at the company are aware of its financial problems."

Hey, taxpayer money is at risk!

Also the livelihoods of a couple hundred people, many of which have kids. But fuck those nerds, amirite?

[Abagadro]

I'm just a simple country lawyer, so I don't quite get what's going on with this. Is this as simple as 38 Studios being given a massive loan by Rhode Island that they are now having trouble paying back, or is it something else?

EDIT: Never mind. The other article gave more details. It is a direct line from the state development corporation which is likely a tax increment based entity. So it likely was cash.

[schild]

Protip: Don't give money to people who don't know how to run a company, especially those that hire overrated hacks that peaked sometime around the release of House Party 3.

Pro-Pro-Tip: Baseball isn't known for its brains.

[HaemishM]

Also protip: don't get published by EA, because even if your game sells well, you're likely to get fucked out of the profits.

Of course, that could also go for Activision and Bethesda, but the point still stands.

[shiznitz]

A loan guarantee is not the same as a loan, technically.  By offering to guarantee $75 million of loans, Rhode Island hopes to help 38 Studios find the additional financing it apparently needs.  If 38 Studios gets the loan and stays alive long enough to pay it back, then RI taxpayers lose nothing.  If 38 Studios gets the loan and then fails, then RI taxpayers are on the hook for the amount of the guarantee.  That taxpayer money would then go to the private entity - bank or other investor - as a repayment.  

Separately, 410,000 does not sound like a lot these days.  If 38 is lucky enough to keep $10 a box, there is no way they made money on that game.

[Sky]

A tech company is still probably a better risk than putting in a walmart, at least until (if) their tax abatement lapses. I would say more of the employee earnings go back into the community, vs walmart where most employees also shop at walmart and all walmart profits get flushed out of the community to Bentonville. My shithole city loses about 2 million a week, of which we don't see a dime in taxes.

[naum]

I thought Curt Schilling was a free market loving died in the wool Republican that loathes any variant of government assistance.

But I see how it works (and yes, it's on a much smaller scale than Wal-Mart, Cabelas, etc.…) -- socialized risk, privatized gain…

[Abagadro]

A loan guarantee is not the same as a loan, technically.  By offering to guarantee $75 million of loans, Rhode Island hopes to help 38 Studios find the additional financing it apparently needs.  If 38 Studios gets the loan and stays alive long enough to pay it back, then RI taxpayers lose nothing.  If 38 Studios gets the loan and then fails, then RI taxpayers are on the hook for the amount of the guarantee.  That taxpayer money would then go to the private entity - bank or other investor - as a repayment.  

Separately, 410,000 does not sound like a lot these days.  If 38 is lucky enough to keep $10 a box, there is no way they made money on that game.

Based on that one article it looks to me like it is in the form of a bond deal where the development corp. for the state issues or facilitates the issuance of the bonds (likely with a private underwriter like a bank) and 38 studios gets the bond proceeds.  38 pays back the individual bondholders, but if it doesn't or can't then payment of the bonds is guaranteed by the development corp (and therefore taxpayer funds).  Around here those are called Industrial Revenue Bonds.

[WayAbvPar]

Deadspin chimes in, including this gem-

Last year Schilling told Reuters that he had invested "$30 million to $35 million" in 38 Studios. A disclosure filing obtained by WPRI shows that Schilling only advanced the company $4 million of his own money, and has already been paid back—with the funds from Rhode Island loan.

 

[Abagadro]

It's not welfare if you are already rich (and white).

[Soln]

perfect hypocrite

[Draegan]

Tsk Tsk.

[koro]

And an update!

http://www.joystiq.com/2012/05/15/38-studios-whiffed-last-loan-payment-received-nearly-50-millio/

The loan's facilitator, Rhode Island's Economic Development Corporation, called an "emergency meeting" for tomorrow morning, wherein it will discuss "an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios financing." As reported earlier, if 38 Studios were to fully default on its loan obligations to investors supplying the loan via the Rhode Island government, the responsibility would fall to Rhode Island's taxpayers – to the tune of $112.6 million.

Of the $75 million borrowed by 38 Studios from the state of Rhode Island, $49.8 million was received by the studio as of March 15, WPRI reports. Given that, it seems worrisome at best that 38 Studios was unable to fulfill its recent payment of $1.125 million. 38 Studios is working on the Kingdoms of Amalur MMO – the game was originally promised for a launch ahead of 2013, when 38 Studios is set to begin paying back bondholders on its $75 million loan. It's unclear what stage its MMO is at, and 38 Studios hasn't made a public statement regarding its recent issues.

[schild]

I'm enjoying all this "He's a republican!" shit being thrown around.

Staunch conservative or not, he's a fucking baseball player.

Athletes are already the Short Bus for intellect in America - on par with reality celebrities that aren't Donald Trump (though, arguably, he's a special brand of stupid) - and he's a member of the elite sport that only employs the dumbest of the dumb.

Seriously, baseball players are fucking stupid.

This shouldn't have shocked anybody.

[Musashi]

It's not so much that all baseball players are stupid.  But that they aren't especially known for their business acumen.  And anyone half arsed to do their homework on this guy knows that he's not even well regarded in his own circles.

[schild]

Yea, but even knowing that - and I'll correct it for you - the vast majority of baseball players are stupid, is enough to make you want to do research on someone before making a horrendous loan.

[Trippy]

Schilling, however, was not one of the stupid players. Few if any pitchers of his era matched the way he studied batters and prepared for his games. But like Musashi implied that doesn't mean that makes him a good business person. Neither does being a hardcore gamer.

[Margalis]

Schilling is not the CEO or CFO, it's not like he's solely (or even mostly) responsible for these decisions.

It seems to me that the idiots here are the people in Rhode Island who thought this was a good idea. They gave them a loan and expected them to start paying it back before the game was released? What? How does that make sense? They have no source of revenue until the game ships, how the fuck are they supposed to start paying back a loan?

Quite frankly a state giving a loan to company making an MMO is a fucking ridiculous idea. Might as well just throw some money in a burning trash can.

[schild]

Schilling, however, was not one of the stupid players. Few if any pitchers of his era matched the way he studied batters and prepared for his games. But like Musashi implied that doesn't mean that makes him a good business person. Neither does being a hardcore gamer.

Whoa whoa whoa, being good at your profession doesn't suddenly vault you out of the realm of stupidity.

Schilling is not the CEO or CFO, it's not like he's solely (or even mostly) responsible for these decisions.

History will paint him as the one who was responsible, so that point is absolutely moot.

[Teleku]

Baseball is easily the most intellectual mainstream sport out there, and I'd say average intelligence is above any other.   Not sure what is driving you to single baseball players out, especially when you have Football, Basketball, and Hockey players to compare with......

[Margalis]

Schild was hit in the nuts by a line drive once.

As far as being a good business person, they got a $75 million loan from Rhode Island. Seems like good business move to me - not for Rhode Island of course though.

[slog]

It seems to me that the idiots here are the people in Rhode Island who thought this was a good idea. They gave them a loan and expected them to start paying it back before the game was released? What? How does that make sense? They have no source of revenue until the game ships, how the fuck are they supposed to start paying back a loan?

Quite frankly a state giving a loan to company making an MMO is a fucking ridiculous idea. Might as well just throw some money in a burning trash can.

Yes, I would have to agree.  How is the media reporting on this?

[Draegan]

Schilling, however, was not one of the stupid players. Few if any pitchers of his era matched the way he studied batters and prepared for his games. But like Musashi implied that doesn't mean that makes him a good business person. Neither does being a hardcore gamer.

Whoa whoa whoa, being good at your profession doesn't suddenly vault you out of the realm of stupidity.

Schilling is not the CEO or CFO, it's not like he's solely (or even mostly) responsible for these decisions.

History will paint him as the one who was responsible, so that point is absolutely moot.

This is a pretty dumb post.

[HaemishM]

Schild was hit in the nuts by a line drive once.

As far as being a good business person, they got a $75 million loan from Rhode Island. Seems like good business move to me - not for Rhode Island of course though.

Actually, what happened was the State of Rhode Island got a $75 million loan, which they then loaned to 38 Studios. If the company makes good, they pay the state back and the state pays the private lender in turn. If 38 Studios go under, the state is on the hook for the whole nut (around $112 million). The private lender makes their money either way (plus they probably got to bundle the loan in some sort of fucked up CDO derivative shit), 38 Studios makes profit if their game is a hit, and even if it goes tits up, Schilling is only out the money he invested (not the $4 million he loaned to the company which already paid him back). The state is really the only one who gets screwed here. Even if 38 Studios had made the total 450 jobs out of the deal they promised instead of the 288, the state would never have made enough in revenue for this to have been a good fucking idea even if the loan got paid off.

[koro]

It seems to me that the idiots here are the people in Rhode Island who thought this was a good idea. They gave them a loan and expected them to start paying it back before the game was released? What? How does that make sense? They have no source of revenue until the game ships, how the fuck are they supposed to start paying back a loan?

Quite frankly a state giving a loan to company making an MMO is a fucking ridiculous idea. Might as well just throw some money in a burning trash can.

Yes, I would have to agree.  How is the media reporting on this?

From what I've seen, it's mostly been the local Rhode Island news stations talking about it and I've heard a lot of blame mostly being laid at their governor's feet about the whole thing. The office got a lot of heat for making the offer in the first place, considering it ate up something like half of their state's special budget for new job creation spending.

[Ruvaldt]

The agreement was signed before Gov. Chafee took office though, didn't it?  I think he stepped in 2011, and the loan guarantee was from 2010.  If they're blaming him for it that seems a little misplaced.

[Numtini]

History will paint him as the one who was responsible, so that point is absolutely moot.

He's the only reason that deal ever appeared and he tried very hard to use his fame to get Mass to match them.

[slog]

http://www.boston.com/businessupdates/2012/05/16/schilling-officials-meet-over-game-company-troubles/GgKPYqwnf5ReX6L66eDcCN/story.html?p1=News_links

Former Red Sox pitcher Curt Schilling asked Rhode Island officials for more money for his video game company 38 Studios LLC in a private meeting Wednesday morning, held to discuss whether its reported financial troubles threaten the state’s $75 million investment in the company.

“Rhode Islanders’ hard-earned money is at stake,” Rhode Island Gov. Lincoln Chafee said before the closed session.

Members of the Rhode Island Economic Development Corp.’s board took no action on Schilling’s request Wednesday, and the amount he asked for was not disclosed. “My priority right now is to get back to my team,” Schilling said in a brief statement to reporters.

Chafee began talks with the game company over the weekend, after reports that it missed a $1.12 million loan payment. Schilling moved the company from Maynard to Providence last year in return for $75 million in loan guarantees from the state. The company promised to bring 450 jobs to the city, and Rhode Island officials hoped it would anchor a new video game sector there.

Massachusetts officials tried to keep 38 Studios in Maynard, but declined to match the Rhode Island offer.

I can just imagine the conversation.  "You already gave us 100 million, how about 30 million more?"

[Mrbloodworth]

That's a shame, I thought it was a solid title.

I guess we have yet to see the McFarlane, R. A. Salvatore ETC.. output though.

[Modern Angel]

Made Deadspin.

http://deadspin.com/5910878/?utm_campaign=socialflow_deadspin_twitter&utm_source=deadspin_twitter&utm_medium=socialflow

[Ingmar]

Heh, that quote:

Hey, here's a thing Curt Schilling said last year!

"There can be no question our country is in the worst economic crisis of our lifetimes. I also think there can be no question that it falls on us, the individuals, to find a way out of our own personal crisis."

Schilling has been vocal in his criticism of the ARRA stimulus, even though it directly funded the Rhode Island job creation program that handed out $75 million to 38 Studios.