38 Studios may lose rights to Kingdom of Amalur
- Posted May 24th, 2012 at 22:37 EDT by Timothy Nunes
- 5 Comments
In debt to the state of Rhode Island, 38 Studios may lose its rights of the IP Kingdom of Amalur: Reckoning to the state.
Since the studio is in debt to Rhode Island for $75 million, 38 Studios has laid off all 379 full-time employees as reported by WPRI, a local news broadcast in Rhode Island. These layoffs were enclosed in emails that read:
"The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a company-wide lay off is absolutely necessary.
"These layoffs are non-voluntary and non-disciplinary.
"This is your official notice of lay off, effective today, Thursday, May 24th, 2012."
Lincoln Chafee, the governor of Rhode Island, has refused further financial support to 38 Studios to prevent "giving 38 Studios additional taxpayer dollars."
It would have taken Kingdom of Amalur over three million in sales to match cost, but it only sold over one million. Representation at the studio hasn't reported its next move yet, whether it being bankrupcy or not, but the rights to Kingdom of Amalur, along with all other intellectual property, will likely be rewarded to Rhode Island to help repay the debt.
Via G4TV, BostonHerald.com
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Comments
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DrinkDayNnight
- 10:55pm EDT - May 24th, 2012
- 1
That's why you don't put all of your eggs into one basket....or one game in this case.
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TheMadTitan |
EcksMane- 11:51pm EDT - May 24th, 2012
- 3
anyone care to explain why they owe rhode island? this kinda puts a damper on the dream of creating your own successful video game studio when a millionaire baseball player cant even do it.
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LOSTHeroes13
- 2:30am EDT - May 25th, 2012
- 4
I'm pretty sure Rhode Island isnt big enough to hold $75 million dollars.
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JackC |
jack1982cp- 8:20am EDT - May 25th, 2012
- 5
guess that's how the industry works these days - Make a really interesting new IP and go out of business. Make a broken sequel and try to cover it up by not making PS3 copies available to reviewers before launch, and you get game of the year.
Not looking good for the next gen if this garbage continues.
This will permanently ban this user and delete all associated comments. This action is irreversible, are you SURE you want to do this?!
