Joystiq

38 Studios' Amalur MMO 'Project Copernicus' would have been free-to-play

Jordan Mallory — Sat, 18 Aug 2012 18:30:00 EST

Details continue to surface regarding "Project Copernicus," the Kingdoms of Amalur MMO that once dominated development at Curt Schilling's now-defunct 38 Studios. We've seen an early trailer of the game and learned that it wasn't any fun to play, but Copernicus' more tangible bullet points, such as its pricing structure, have remained a mystery.

"We were going to be the first triple-A, hundred-million-dollar-plus, free-to-play, micro-transaction-based MMO," Schilling told Boston Magazine. "That was one of our big secrets."

Schilling went on to say that Copernicus' status as a free-to-play MMO would have been the "atom bomb" that "shocked the world," once the game eventually debuted. Copernicus' non-subscription architecture was also one of 38 Studios' strongest selling points during late-stage negotiations with potential investors, according to Schilling, and that talks could have been kept alive were it not for Rhode Island Governor Lincoln Chafee's disparaging public tone.

38 Studios' Amalur MMO 'Project Copernicus' would have been free-to-play originally appeared on Joystiq on Sat, 18 Aug 2012 18:30:00 EST. Please see our terms for use of feeds.

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38 Studios liquidation valued in tens of millions by RI, gov. will get every penny he can for taxpayers

Alexander Sliwinski — Thu, 07 Jun 2012 17:10:00 EST

38 Studios declared bankruptcy earlier this afternoon and Rhode Island Governor Lincoln Chafee held a press conference this afternoon to discuss the company's assets, which now belong in part to Rhode Island taxpayers.

"We have had in recent days discussions with investors that were and, to my knowledge, are discussing substational numbers, which indicate that there could be significant value to the assets," said Jonathan Savage, council to the Rhode Island Economic Development Corporation. "I can say that discussions we've had have been in the tens of millions of dollars."

"We are going to do everything possible to maximize return on our investment," declared Governor Chafee. "Taxpayers in Rhode Island can have full confidence that if there's a penny that we can get, or a nickle or a dime, we'll get it." Earlier this year, Wedbush Securities analyst Michael Pachter told us that he expected 38 Studios' IP to be worth approximately $20 million.

38 Studios liquidation valued in tens of millions by RI, gov. will get every penny he can for taxpayers originally appeared on Joystiq on Thu, 07 Jun 2012 17:10:00 EST. Please see our terms for use of feeds.

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38 Studios declares bankruptcy, formal investigation begins regarding finances

Alexander Sliwinski — Thu, 07 Jun 2012 13:20:00 EST

Curt Schilling's embattled 38 Studios declared Chapter 7 bankruptcy (liquidation), as Rhode Island and federal authorities open an investigation into how the company handled its finances.

WPRI reports the state police, attorney general's office, US Attorney's office and the FBI will investigate 38 Studios, "both the money that came from the state as well as the money that came from Bank Rhode Island." The Providence Journal confirmed the bankruptcy this afternoon.

Beyond the controversial taxpayer backed loan of $75 million to 38 Studios, the Bank Rhode Island reportedly loaned the developer $8.5 million earlier this year against tax credits that haven't materialized.

38 Studios declares bankruptcy, formal investigation begins regarding finances originally appeared on Joystiq on Thu, 07 Jun 2012 13:20:00 EST. Please see our terms for use of feeds.

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Schilling says he could lose $50 million of his own money in 38 Studios implosion [update: Chafee responds]

Ben Gilbert — Tue, 29 May 2012 10:00:00 EST

Embattled 38 Studios co-founder and head Curt Schilling finally broke his weeks of silence on the Rhode Island studio's recent implosion in an interview with The Providence Journal. "Frustration" seems not strong enough a word to describe his feelings toward Rhode Island Governor Lincoln Chafee - Schilling called Chafee's commentary surrounding 38 Studios "devastating," and claimed it "scared off private investors."

Schilling also said that he could lose $50 million due to the studio's failure - money which he earned as a professional baseball player, and which he later invested into 38 Studios. That money, as well as approximately $50 million of a planned $75 million loan co-signed by the state of Rhode Island, was eaten by 38's long-in-development MMO, "Project Copernicus."

38 Studios' Baltimore-based subsidiary, Big Huge Games, was working on a sequel to this year's Kingdoms of Amalur: Reckoning. The project was depending on private investment to go into production - to the tune of $35 million from an unnamed publisher - which Schilling said was pushed away by Chafee's statements.

"Curt was committed to us as a community and as people, he wanted the best possible work environment for the team he cared so much for, and as a result none of us wanted to let him down," one former 38 Studios employee, speaking under condition of anonymity, told us. "He had invested so much into us financially and personally, we were not about to betray that trust. We were not going to take the chance of speaking to the press and accidentally ruining any chances with outside investors. Unfortunately, it didn't matter if the employees spoke and ruined things with the investors as the Governor beat us to it."

Last week, 38 Studios laid off its near-300 person staff in Rhode Island, as well as its approximately 100-person studio in Baltimore, Big Huge Games.

Update: Governor Lincoln Chafee responded this morning to Schilling's comments in a short Q&A session with Rhode Island reporters. "As a business person, he was new at it, and so I always had some reservations," Chafee said. "I have to verify everything, I can't just take it as a leap of faith," he told one reporter asking about the alleged $35 million that 38 Studios was on the brink of acquiring to create a sequel to this year's Kingdoms of Amalur: Reckoning. "Hope springs eternal, but I won't misrepresent to the Rhode Islanders how dire the situation is," Chafee added. "I understand that being involved in this very risky industry that, when things aren't going well, there's gonna be blame. But this isn't accurate to be blaming the state in this case."

Schilling says he could lose $50 million of his own money in 38 Studios implosion [update: Chafee responds] originally appeared on Joystiq on Tue, 29 May 2012 10:00:00 EST. Please see our terms for use of feeds.

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Rhode Island: Fired 38 Studios staff are highly skilled, will find new work

Jessica Conditt — Fri, 25 May 2012 18:00:00 EST

Rhode Island Department of Labor and Training director Charles Fogarty said today that the staff of 38 Studios, all of whom were laid off yesterday, will be able to find new jobs because they are "highly skilled."

"The individuals in question, most of them are pretty highly skilled," Fogarty said. "They've already been contacted by a number of employers. Our department has been contacted by folks looking for people with that type of skill."

Governor Lincoln Chafee and his team today held another press conference to address 38 Studios' financial situation, leading with the information that his office wasn't informed of the layoffs yesterday. Chafee held a press conference one hour after news of the firings broke yesterday; about 300 people in Rhode Island and almost 100 from Big Huge Games in Maryland lost their jobs.

Today, Fogarty said he didn't think it would be difficult for these former employees to find new work.

"I don't expect that they're going to be unemployed for all that length of time," he said. "So far there's only been a small number who've actually applied for unemployment benefits at this point."

Fogarty didn't say how many former 38 Studios employees had applied for unemployment. To allay concerns of the wider economic impact of supporting an influx of people on unemployment, Fogarty said the following: "Don't forget, a number of them are not Rhode Islanders. They worked here but they were not Rhode Islanders."

Of the unspecific number of people who filed for unemployment, about half were Rhode Islander residents, he said, responding to questions about the "jobs for Rhode Islanders" pitch that came with 38 Studios' founding.

Gov. Chafee doesn't think it's futile to attempt to find investors in 38 Studios, saying that when a studio is basically defunct and has no employees, "some might argue that that's the time for an investor to come in, when you can get it for pennies on the dollar, but we're still fairly pessimistic."

Unfortunately, even if an investor did jump in, Rhode Island would be the "pennies" part of that analogy, not the dollar.

Rhode Island: Fired 38 Studios staff are highly skilled, will find new work originally appeared on Joystiq on Fri, 25 May 2012 18:00:00 EST. Please see our terms for use of feeds.

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Kingdoms of Amalur: Reckoning had to sell 3M 'just to break even,' RI governor says

Ben Gilbert — Thu, 24 May 2012 18:15:00 EST

Despite Kingdoms of Amalur: Reckoning selling "1.22 million copies in its first 90 days" according to 38 Studios head Curt Schilling, it apparently never crested the 3 million mark it needed to break even. "The game failed, the game failed," Rhode Island Governor Lincoln Chafee told attendees of a press conference this afternoon.

According to "experts" speaking with Chafee's office, Reckoning needed to sell over 3 million copies "just to break even," never mind profit. The action RPG was released this past February to critical praise and modest initial financial success. It was credited with saving Big Huge Games from destruction back in 2009 when 38 Studios picked up the Baltimore studio, primarily for repurposing an already-in-production RPG into what we now know was Kingdoms of Amalur: Reckoning.

Both 38 Studios and Big Huge Games laid off their staffs this afternoon amidst major financial trouble at 38.

Kingdoms of Amalur: Reckoning had to sell 3M 'just to break even,' RI governor says originally appeared on Joystiq on Thu, 24 May 2012 18:15:00 EST. Please see our terms for use of feeds.

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38 Studios and Big Huge Games lay off entire staffs [update]

Ben Gilbert — Thu, 24 May 2012 16:30:00 EST

38 Studios and Big Huge Games have both let go of their entire staffs, a source with knowledge of the situation tells Joystiq. Following reports that 38 Studios stopped paying staff on May 1, and just an hour before a scheduled press conference in Rhode Island addressing the recent 38 Studios financial debacle, both the Providence, RI-based 38 Studios and the Baltimore, MD-based Big Huge Games are no more.

"Big Huge Games was home for my wife and me for our adult lives so far. I'll miss it terribly, but so proud. Good night and good luck," former Big Huge Games lead world designer Colin Campbell said on his Twitter account. Big Huge's latest release was the moderately successful Kingdoms of Amalur: Reckoning. The studio was picked up by 38 Studios back in 2009, and it crafted the first entry in 38's ambitious new universe: Amalur.

The recent financial tumult arose following a defaulted payment from 38 Studios to the Rhode Island state government on May 1, indicating much larger financial issues that could ultimately lead to Rhode Island taxpayers owing up to $112.6 million between 2013 and 2020. It's unclear whether today's layoffs mean 38 Studios is unable to pay back the approximately $50 million its owes Rhode Island of a planed $75 million loan. If that's the case, Rhode Island will take over ownership of the Amalur IP, valued at around $20 million.

We expect to hear more at a scheduled press conference this evening held by Rhode Island Governor Lincoln Chafee.

Update: WPRI got ahold of the internal memo to employees at 38 Studios, which reads: "The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary. These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012." Big Huge Games and 38 Studios collectively employed 379 full-timers as of March 15, according to the report.

38 Studios and Big Huge Games lay off entire staffs [update] originally appeared on Joystiq on Thu, 24 May 2012 16:30:00 EST. Please see our terms for use of feeds.

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38 Studios employees unpaid since May 1, health insurance ends on Thursday

Alexander Sliwinski — Wed, 23 May 2012 20:30:00 EST

38 Studios employees have not been paid since May 1 and their health care will end Thursday at midnight, a source with knowledge of the situation tells Joystiq. Employees are normally paid on the first and 15th of each month.

When asked if the studio would be shutting down this week, the source could only say, "Unknown at this time. Outlook is not good."

We're informed that 38 Studios' MMO, "Project Copernicus," announced by Rhode Island Gov. Lincoln Chafee as launching in June 2013, did have that date as its internal target. However, "Whether this is realistic or not is up for debate."

Gov. Chafee said in a press conference today that he would do what he could to prevent the studio from shutting down. Will the studio still exist within a month? "I have no idea," our source replied.

38 Studios employees unpaid since May 1, health insurance ends on Thursday originally appeared on Joystiq on Wed, 23 May 2012 20:30:00 EST. Please see our terms for use of feeds.

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RI governor confirms 38 Studios layoffs

Alexander Sliwinski — Mon, 21 May 2012 23:59:00 EST

Rhode Island Governor Lincoln Chafee has confirmed layoffs at 38 Studios. The governor made the statement this evening following a scheduled meeting of the Rhode Island Economic Development Corporation (RIEDC), where about as little happened to resolve 38 Studios' troubled situation as at last Wednesday's "emergency meeting."

On Friday Gov. Chafee held a surprise press conference about 38 Studios, in which he said the government was done providing easy money for the developer, and gave "Project Copernicus" a launch window of June 2013.

WPRI reporter Ted Nesi told Joystiq that Gov. Chafee confirmed the layoffs, but was ambiguous about whether employees at the studio were being paid.

38 Studios continues to remain silent and has not made any official statement about anything since this whole mess started early last week. According to the AP, 38 Studios founder Curt Schilling brushed past reporters on his way out of the meeting this evening, saying there was "misinformation" he couldn't clear up in a sound bite.

Not at all coincidental, Warner Bros. owned Boston-area MMO developer Turbine will hold a recruitment event at the Hotel Providence Tuesday night from 5-9PM. The studio currently has over 50 open positions.

We continue to leave the line open if 38 Studios or any employees wish to share their side of what's going on at the developer.

Update: Avalanche Studios, which opened up a studio in New York last year, will also hold a recruitment drive at the Westin Providence Hotel on Thursday, May 24, from 12-7PM.

RI governor confirms 38 Studios layoffs originally appeared on Joystiq on Mon, 21 May 2012 23:59:00 EST. Please see our terms for use of feeds.

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Rhode Island governor gives 38 Studios' Copernicus MMO a June 2013 launch

Ben Gilbert — Fri, 18 May 2012 13:49:00 EST

Rhode Island governor Lincoln Chafee told attendees of a 38 Studios-related press conference that the long awaited 38 Studios MMO - only known currently as "Project Copernicus" - is set to launch in June of 2013. Chafee said, "What I understand is Copernicus is June of '13."

Considering we've literally never heard any information on the Amalur-based MMO (aside from the fact that it's an Amalur-based MMO), it's a bit hard for us to believe that the game will arrive by next year. "I said from the beginning that it was a risky enterprise," Chafee told press of the troubled business deal between 38 and Rhode Island.

38 Studios is supposed to start paying back its $75 million loan - facilitated by the state of Rhode Island and supported by bond investors - by the beginning of 2013. It's unclear how 38 will afford those payments, but Chafee repeatedly pointed out 38's intention to seek private capital (read: more money from private investors - and not from the state). Said private capital has yet to be secured, Chafee said.

Rhode Island governor gives 38 Studios' Copernicus MMO a June 2013 launch originally appeared on Joystiq on Fri, 18 May 2012 13:49:00 EST. Please see our terms for use of feeds.

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38 Studios successfully pays $1.125 million to Rhode Island

JC Fletcher — Fri, 18 May 2012 13:30:00 EST

38 Studios's $1.125 million check to the state of Rhode Island has cleared, governor Lincoln Chafee announced during a press conference this afternoon, thus fulfilling the first required payment on the studio's loan from the Rhode Island Economic Development Corporation.

Rhode Island is changing its legislation on tax breaks, closing loopholes pertaining to state funds being used for motion-picture endeavors, Chafee said. The state's interest lies in protecting the taxpayers, balanced with keeping 38 Studios solvent, since "taxpayers have had a very generous deal for 38 studios," Chafee said.

"It's time for them to go out and get private capital funding," Chafee said. "That's the deal. It's a generous deal, but stick to it."

Rhode Island officials believe that the total of the $49 million loaned to 38 has been spent. Chafee said that until late April, meetings with 38 suggested that they would make their May payment. "I want to make sure we're doing everything possible to make sure 38 doesn't fail," Chafee said. "We're in deep." Everything possible except giving them more money."There's not going to be any money from the state. They're not coming here for easy money."

According to Chafee, "Basically, the access to private capital hasn't materialized."

38 Studios' next payment is a debt service payment due November 1 of $2.6 million, and Rhode Island officials believe the studio will have the capital to cover it.

38 Studios will then owe $12.6 million in full annual debt service in 2013, and "that's on their dime," officials said.

Chafee said he recognized the risk involved in starting a new gaming studio, but the state would have benefited greatly from the studio's "huge success" had it done well.

"I said from the beginning that it was a risky enterprise," Chafee said. Regarding how 38 Studios will function if it doesn't have the funds to pay its employees, Chafee reiterated, "Again, these are the ramifications of being in a risky business."

Chafee doesn't plan on taking a gamble of this nature again: "Never, never ever. Not under my watch," he said.

38 Studios successfully pays $1.125 million to Rhode Island originally appeared on Joystiq on Fri, 18 May 2012 13:30:00 EST. Please see our terms for use of feeds.

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Rhode Island gov working hard at 'keeping 38 Studios solvent'

Alexander Sliwinski — Mon, 14 May 2012 20:15:00 EST

Reckoning, indeed! A developing story out of Rhode Island has Governor Lincoln Chafee talking in uncertain terms about the financial condition of Curt Schilling's 38 Studios, which the state gave a controversial $75 million loan to a couple years back to move down to Providence.

The Providence Journal reports Gov. Chafee, who was against the loan during his election, spent a "weekend of work on this subject," but wouldn't go into specifics. "We're doing everything possible, like I would for any Rhode Island company," he said this afternoon. The Journal reports he added the work was about "keeping 38 Studios solvent."

"We're concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community," Governor Chafee told WPRI.com. "We're working on different issues with them." Asked if 38 Studios' issues could be resolved, Chafee said, "We're working on it."

Continue reading Rhode Island gov working hard at 'keeping 38 Studios solvent'

Rhode Island gov working hard at 'keeping 38 Studios solvent' originally appeared on Joystiq on Mon, 14 May 2012 20:15:00 EST. Please see our terms for use of feeds.

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