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38 Studios Fails to Make Payroll Amid Financial Crisis

Updated Fri, May 18, 2012 by Martuk

It’s been a rough week for Curt Schilling and 38 Studios. After missing a 1.125 million loan payment, Rhode Island officials held meetings relating to the future of the developer. Curt Schilling managed to secure a $75 million loan guarantee to move the studio to Rhode Island in 2009, but financial problems have been at the front of news this week for the developer.

According to a recent report, in an effort to pay the missed loan that set off the crisis earlier this week, 38 Studios missed its payroll in order to cut a check for the amount. WPRI reports that 38 Studios hand-delivered a check to the Economic Development Council (EDC) for the overdue amount earlier today, but the EDC was later contacted by 38 Studios CFO Rick Wester and informed that insufficient funds were available to cover the amount, so the agency returned it. Schilling appealed to the EDC earlier this week for aid, but no decision was made.

Game news site Joystiq has also cited a source in their report that claims 38 Studios also had to release all of its temps and contractors this week.

So far, it’s not looking good for 38 Studios. The studio released its first game earlier this year with Kingdoms of Amalur: Reckoning and has also been working on an MMORPG tie-in currently codenamed Copernicus with industry veteran Ken Rolston, best-selling fantasy author R.A. Salvatore and Spawn creator Todd McFarlane. Stay tuned and we'll update you as we learn more on the fate of 38 Studios.

via Joystiq
Source: WPRI

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