38 Studios Ate Through $133 Million Before Collapsing
38 Studios, the company known for A) creating the action-RPG Kingdoms of Amalur: Reckoning, and B) falling into financial ruin soon thereafter, apparently tore through $133 million before closing its doors.
According to High Details, baseball player Curt Shilling’s failed company might have set its expectations too high when looking at projected revenue through the year. The 38 Studios business plan projected that the company would take in $109 million in revenue over the course of 2012, a projection it was unfortunately unable to meet. The company filed for bankruptcy last month, creating a debacle as it created issues with the Rhode Island state government after securing loan money from it. 38 Studios bankruptcy could take 18 months to finish according to a local news outlet; the combined debt of the company is 12 times more than they currently hold in assets, including approximately $1 million in unpaid worker wages. Likely turning off Rhode Island (or any other government) from investing in game development again, it’s a shame to see a great idea go down in flames.