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GAMING NEWS

38 Studios May Be In Financial Trouble

Posted on Tuesday, May 15 @ 13:00:34 PST by Keri_Honea

38 Studios, the owners of the developer behind Kingdoms of Amalur: Reckoning, seems to be in big financial trouble. Even worse, if the studio goes down, its home state of Rhode Island may go down with it.

In 2010, Rhode Island's Economic Development Corporation secured $75 million in loans to persuade 38 Studios to relocate to Rhode Island from Massachusetts. In return, 38 Studios promised to bring 450 jobs to Rhode Islanders by the end of 2012. As a result, if 38 Studios goes under, Rhode Island taxpayers will be on the hook for $112.6 million for the next 8 years.

The state's governor told a local NBC affiliate that they are working with 38 Studios to help avert this potential disaster. "We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios," he said.

Neither 38 Studios nor EA have commented on this situation.
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