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

[HaemishM]

Indeed 38S going broke was probably amazingly profitable for them if I remember the numbers.

More profitable than if 38 had just been mildly successful?

It probably works out to be just about the same for that bank. They made their money whether 38 was successful or not because the government is on the hook for the loan and the government can't default on it.

[UnSub]

I'm not going to requote the block quote, but: Patcher. Wrong on 38 Studios being able to find investors before SWOR launched (since they were and couldn't find any) and wrong that RI should have kept investing in the studio for another month. More wrong on a history of wrong.

He's the industry analyst video gaming deserves.

[Kageru]

Indeed 38S going broke was probably amazingly profitable for them if I remember the numbers.

More profitable than if 38 had just been mildly successful?

As I understand it, for lending out 75 million they get something like 112 million (the state pays them out the interest on the bond too) from an organisation that can probably pay it off much faster than 38S was likely to. Investing their money at 6-7.75% interest with a government guarantee was a pretty sweet deal.

[IainC]

I'm not going to requote the block quote, but: Patcher. Wrong on 38 Studios being able to find investors before SWOR launched (since they were and couldn't find any) and wrong that RI should have kept investing in the studio for another month. More wrong on a history of wrong.

He's the industry analyst video gaming deserves.

Although to be fair, from the last article that was linked it looks as though 38S did have several meetings with VCs before the RI loan and the big thing that stopped them investing wasn't the likely risk of the venture but the fact that Curt was not willing to give up any stock so they would be getting almost nothing for their investment even if Copernicus launched and was a breakout hit. The RI loan was secured with the IP so that collateral was off the table post the RI deal as well.

[Sheepherder]

I have no clue how it is that he looked at the terms on that loan and said "Yes, I can find things for another 250 people to do PDQ."  Or why the fuck you wouldn't try to haggle that down to a manageable number of hires based on the premise that it's better than throwing development money at building fast food joints or whateverthefuck RI does with that money normally.

[UnSub]

I'm not going to requote the block quote, but: Patcher. Wrong on 38 Studios being able to find investors before SWOR launched (since they were and couldn't find any) and wrong that RI should have kept investing in the studio for another month. More wrong on a history of wrong.

He's the industry analyst video gaming deserves.

Although to be fair, from the last article that was linked it looks as though 38S did have several meetings with VCs before the RI loan and the big thing that stopped them investing wasn't the likely risk of the venture but the fact that Curt was not willing to give up any stock so they would be getting almost nothing for their investment even if Copernicus launched and was a breakout hit. The RI loan was secured with the IP so that collateral was off the table post the RI deal as well.

True, but Patcher's comment ignores that issue as well. 38 Studios had been looking for investors for a long time and couldn't find any, so comments that 38 Studios should have "moved to get financing months earlier" ignores the fact that they were trying.

Having re-read the article, I'm amazed that internally they thought they'd sell 2 - 3m units of KoA:R though. For a first title from a new studio 1.3m units was strong and (if you believe Schilling) better than EA thought it would do.

[HaemishM]

1.3 million units should have earned them automatic money for a sequel. That's really strong sales for a title from an unknown IP, first time dev studio (even though Big Huge wasn't a first time studio, they were under the 38 Studios name by then), and most of those sales were likely on a console platform, which should have been more profitable for the publisher than just a PC title. EA should have been tickled pink.

[Paelos]

If you can't make money on $65M worth of revenue, where you are working out of one location, you're completely inept at business.

The thing is, when you correctly apply costing to KoA, they probably made a shitton of money. However, they rolled every single bit of it into the MMO clusterfuck.

I sort of see this as the same thing that's happening right now with the Elder Scrolls MMO. Every single fan that heard of the idea is going, "They can't be fucking serious." But oh no, they are deadly serious. And they are taking the assloads of money from their good product (Skyrim) and pumping it into their stupid MMO idea. I mean fuck, they are already at 250 employees on the ES MMO, and they are still years away from an actual product. The dev studio has been in business since 2007, and they've never published a fucking thing.

Get ready folks. We're two years away from another one of these stories, without as much personal clusterfuck.

[HaemishM]

If you can't make money on $65M worth of revenue, where you are working out of one location, you're completely inept at business.

The thing is, when you correctly apply costing to KoA, they probably made a shitton of money. However, they rolled every single bit of it into the MMO clusterfuck.

Actually, 38 was TWO locations (Big Huge, the studio that actually made KOA: R was in Maryland and was bought by 38). Also, according to what we've seen, they didn't get assloads of money out of KOA: R because the shit contract they signed only paid them $28 million after it was published, and they wouldn't have gotten royalties on sales until it hit 2 million sales.

But otherwise, yes, they were completely inept at business.

[Severian]

Big Huge Games has resurfaced as Impossible Studios, under Epic.

http://epicgames.com/community/2012/08/epic-games-announces-impossible-studios/

Epic Games, Inc. announces the opening of Impossible Studios, a company comprised of highly skilled, senior-level game development talent. Based in Hunt Valley, Maryland, Impossible is the latest addition to Epic’s network, which includes corporate headquarters in Cary, North Carolina; ChAIR Entertainment in Salt Lake City, Utah; People Can Fly in Warsaw, Poland; Epic Games Korea in Seoul, Korea; and Epic Games Japan in Yokohama, Japan.

Founded in June, Impossible brings world-class game development expertise and creativity to Epic’s growing team. With heralded roots in real-time strategy and role-playing entertainment software, Impossible brings its own distinct design and technical sensibilities to Epic’s portfolio of games and game technology across major platforms.

Led by studio director Sean Dunn, Impossible’s first project is the touch-based action role-playing game “Infinity Blade: Dungeons” for iOS. “Infinity Blade: Dungeons,” which was conceived at Epic’s Cary studio, is being developed in collaboration with Epic and ChAIR under Impossible’s roof in Maryland.

Impossible consists of former employees of Big Huge Games, creators of the renowned “Rise of Nations” strategy games, “Catan” for Xbox LIVE Arcade, “Age of Empires III: The Asian Dynasties” for PC, and “Kingdoms of Amalur: Reckoning” for Xbox 360, PlayStation 3 and PC. Big Huge Games earned the Baltimore Business Journal’s “Best Places to Work 2011” award and was also honored as one of Game Developer magazine’s top 30 developers in the world earlier this year.

“Epic Games has truly embraced this stellar collection of developers who were displaced by the closing of Big Huge Games,” said studio director Sean Dunn. “They have looked after us with complete care, giving us all the tools and resources we need to make a lot of gamers happy.”

“We were so glad we could help keep this great team together, and we’re lucky to have them,” said Epic Games President Dr. Michael Capps.

[Yegolev]

I like the name!

[Lantyssa]

At least someone landed on their feet after this.

[bhodi]

I like the name!

If you like the name, check out the logo. It's INCREDIBLE:

[Tebonas]

First RPG they bring out will be bought just for the logo. 

[schild]

Pretty much no one from the team that made Rise of Nations is there anymore. Haven't been for years. They just got some ok engineering talent (the best left years ago), and some decent artists. That's about it. It was very nice of them to help the entire studio out like that though.

[IainC]

I'm hearing that they hired about 20 or so from the 220ish headcount of BHG.

[schild]

BHG was not 220 people. 38 Studios was though. Shit, their studio wouldn't hold 60 comfortably let alone 220.

Source: I worked there.

[UnSub]

BHG has been publicly linked to having 80 - 90 employees at the time of 38 Studios collapse.

So if Impossible Studios is only 20 people or so, it's still a significant cut.

[schild]

Well let's put it this way - they certainly weren't at that when 38 saved them from their previous owners. 38 obviously over-hired at both offices.

Edit: There's the possibility BHG had completely staffed up to make the game that was formerly known as Crucible, which became Amalur. However, that game was in development YEARS ago, like... 6 years ago? Maybe 5. Anyway, whole thing is a clownshoes mess.

[satael]

http://blogs.bostonmagazine.com/boston_daily/2012/08/15/curt-schilling-38-studios-game-free/

Since the mmo was going to be f2p they wouldn't even had the initial boost from box sales... no wonder they couldn't find interested investors when they ran out of money.

[HaemishM]

F2P may be sort of the "new hotness" but I think the reason people wouldn't have expected it to be F2P is because a game with a budget that high needs to sell the fucking box to make some of the money back.

[Chimpy]

Schilling probably pulled that f2p was the plan shit out of his ass after the fact just to give more "proof" that Chaffee the RINO fucked him.

[satael]

On the game being f2p etc (it seems like they gave it a bit of thought actually and didn't just decide it on a whim)

http://www.mobhunter.com/?p=747

[Outlawedprod]

Schilling has taken the action off the gaming forums and is sticking to da tweets.  Quality conversation here.
https://twitter.com/gehrig38/status/236989655000694784

@JonPincince If the state loses money it's because the Governor is a dunce of epic proportions, nothing I can do about that

No word yet if another fuck that loser meme will be born.

[Merusk]

No, because people would have to actually give a damn about the guy or the product to spawn a meme. Schilling is another footnote of a footnote to the internet now.

[Outlawedprod]

House for sale
http://www.wpri.com/dpp/target_12/schilling-puts-massachusetts-home-on-the-market

[UnSub]

No federal charges to be laid in the 38 Studios collapse, but RI continues their own investigation.

[Nebu]

Business as usual. 

[Paelos]

Business as usual. 

Nobody lied to the banks. Nobody lied to the state (as far as I can tell). Being an idiot and pissing away tons of capital isn't a crime, as long as you were pissing it away on actual business.

[HaemishM]

He didn't lie, he just got loans he shouldn't have because he was Curt Goddamn Schilling.

[WayAbvPar]

Apparently he was interviewed for the newest 30 for 30 'Broke'. Sounds fascinating, but would probably be really depressing. Something like 78% of NFL players are broke or bankrupt within 5 years of retirement. FSM wept.

[Paelos]

I watched the whole thing. It was pretty good actually, and very uplifting in presentation. You actually get a good idea of the kind of ignorance these guys have, and what happens as soon as you hit it big. Things I really liked from broke:

- The NFL is the ultimate meritocracy. Nothing is guaranteed except the signing bonus, but players get that first check and freak out because they've never understood taxes. While hedge funds guys are paying 15% on their income, NFL guys are paying 35% to the feds and filing in 11 states.
- The first thing everyone buys with the big contract is their mom a house. Next is the car. Then the clothes and jewelry, followed by a mansion.
- "There's nothing sexy about investing in mutual funds, and players always want to be involved in what's cool. Ballers want to be rappers, and rappers want to be ballers."
- You never realize how insane it is to have your salary posted in the paper. One player noted his house was broken into the DAY his salary was released.
- Bad marriages/divorce/kids sucks most players dry. There are actual websites dedicated to where players will be that night in the hopes chicks will show up to get pregnant with that player's child.

Most depressing story: When one player told his family he was done with them leeching off him, his own mother sent him a box for his birthday with a bill in it for $25,000. The note said, "If you don't want to be a part of our lives, then pay me back the money I spent raising such a terrible son." His own damn mother said this. I was floored any parent could do that to their own child.

[bhodi]

I actually thought an accountant was included with their first paycheck to be honest. Not only because it's humane, but a bunch of broke ex-NFL players can't be very good publicity.

[HaemishM]

While hedge funds guys are paying 15% on their income, NFL guys are paying 35% to the feds and filing in 11 states.

This I did not know. Wait, so they are paying state income taxes for every state which has an NFL team?

[Paelos]

You pay state income tax for every game you play in that state.