Back in 2012, we witnessed one of the most interesting and colorful studio failures in game industry history. 38 Studios, founded by former Red Sox Star Curt Schilling and his dream of making the world’s ultimate MMORPG, suddenly collapsed following the release of its first and only game, the action-RPG Kingdoms of Amalur: Reckoning . It was quite the scandal, involving taxpayer-funded loans from the state of Rhode Island, false promises, employees left hanging on everything from salaries to mortgages, and a great deal of creative bookkeeping. If you’re interested in the business side of gaming at all, check out the full story here.
Anyway, one of the final chips to fall in the whole ordeal came today, when Rhode Island State Police Col. Steven O’Donnell and Attorney General Peter Kilmartin announced that after a four-year investigation, no criminal charges will be laid against anybody involved in 38 Studios. This has been a major political issue in Rhode Island, contributing to the toppling of the previous state government that approved a $75 million dollar loan for an untried video game company. Still, police simply couldn’t find enough evidence of criminal intent to charge anybody. Personally, I’ve always been inclined to believe that the entire shebang was the result of massive incompetence on multiple levels, and I guess that’s where it’s going to fall legally, as well.
Schilling and 38 Studios aren’t completely in the clear, however. The “architects” of the 38 Studios deal, including 38 Studios leaders and Rhode Island politicians, face both a civil lawsuit filed by the state of Rhode Island and civil fraud charges filed by the U.S. Securities & Exchange Commission against them. The civil lawsuit goes to court this fall.
Remember, kids. Don’t be like Curt Schilling. If you’re going to start a video game company, hire finance people who really know their stuff and don’t try to make an MMORPG. Only crazy people and Square Enix are making MMORPGs these days – and only Square Enix is crazy enough to actually make one work.
Source: WPRI