38 Studios financial woes have been in the news over the last week. Despite not being able to make loan payments to Rhode Island, there were sounds coming from the administration that it would try to make it work.
But today there is news that 38 Studios has failed to pay its employees, and has laid off temp and contract workers.
That’s the worst kind of news that an investor can hear. When a company can’t make payroll, it’s not generally long for the world.
What I’m wondering is where that $75 million got to.
Schilling, as I understood it, invested something like $30 million of his own money, which coupled with that $75 million from RI provides a bankroll of over $100M. They’ve had a game release which presumably did well too. Where is all the cash?
It’s not like Project Copernicus has the scope of the $300M budget for SWTOR. Or does it?
In anycase, it’s probably not wise to get your hopes up for the 38 Studios MMORPG. Not unless an Angel Investor swoops in at the 11th hour. Or another studio buys the IP and development assets.