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 Kingdoms of Amalur  house 38 Studios failed to make $1M loan payment

Kingdoms of Amalur house 38 Studios failed to make $1M loan payment

May 16, 2012 | By Mike Rose

May 16, 2012 | By Mike Rose
More: Console/PC, Business/Marketing

The Rhode Island government is meeting with Kingdoms of Amalur: Reckoning house 38 Studios -- parent of the game's developer Big Huge -- today to discuss what can be done to protect taxpayer money, after the studio this week failed to make a scheduled $1.125 million loan repayment.

The studio was granted a $75 million loan from the government-owned Rhode Island Economic Development Corporation in 2010, after 38 Studios agreed to move its operations to Rhode Island. The details of the agreement stated that the studio had to fill 450 full-time employee positions to receive the full amount.

However, earlier this week it was revealed that the studio is currently suffering from financial issues, with Governor Chafee commenting that he was "doing everything possible to ensure that 38 Studios stays part of the Rhode Island community."

As reported by the Associated Press, it has now been stated that these talks have been occurring as a result of 38 Studios failing to make a scheduled $1.125 million payment to the state's economic development agency.

An emergency meeting between the agency and the game studio has been scheduled for today, to address an "unexpected occurrence that requires immediate action to protect the public regarding 38 Studios."

The loan was put in place back in 2010 to fund the studio's MMO Copernicus, which the company is still keeping under the radar. In the meantime, 38 Studios released Kingdoms of Amalur earlier this year, which when on to sell 330,000 copies in the U.S. during its first month on sale.

[Update: During today's meeting, 38 Studios head Curt Schilling reportedly asked Rhode Island state for additional funding to support his company. While 38 Studios and the state plan to continue their deliberations, Rhode Island officials have not yet taken any action in response to Schilling's request.

Neither party offered details on the kind of resources 38 Studios needs, but Governor Lincoln Chafee said the state needs to answer one question: "How do we avoid throwing good money after bad?"]

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