NEWS - Thursday, May 17, 2012

Have we seen the last of 38 Studios?

38 Studios was unable to make payroll this week, but is in the process of making the $1.125 million payment that set off the company’s crisis earlier this week. WPRI reports that a spokesperson for the Rhode Island Economic Development Corporation (RIEDC) did confirm that former Red Sox player Curt Schilling’s video game company was unable to pay its employees.

A source tells Joystiq that beyond not making payroll, all temps and contractors at 38 Studios were let go this week.

At the same time, Governor Lincoln Chafee’s office stated 38 Studios is in the process of making the overdue payment to the state. The head of the RIEDC, Keith Stokes, who approved the $75 million loan to 38 Studios in 2010, resigned late last night.

If 38 Studios does close, Rhode Island taxpayers will have to repay the $75 million bond (plus interest) through 2020, but they’ll own the intellectual property of the developer, which would likely be sold at auction.

If the company does make the payment to the state, the next round will be owed in 2013. Of course, there won’t be a 38 Studios much longer if it isn’t paying employees.

Update: The hand-delivered check for the overdue $1.125 million payment has been returned by the EDC to 38 Studios after the company’s chief financial officer said there were insufficient funds to cover it.

Update 2: Statement from the Office of Governor Lincoln D. Chafee: "A check from 38 Studios was hand-delivered to the Rhode Island Economic Development Corporation at approximately 5 o’clock this evening. However, upon learning from the Chief Financial Officer of 38 Studios that there were insufficient funds to cover the payment, the check was returned. The EDC remains willing to accept readily available funds."



Site Statistics

Registered Members: 43,985
Forum Posts: 725,147
Xbox One Titles: 656
Xbox 360 Titles: 1,084
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 583
Xbox Titles: 847
Staff Reviews: 1,449
Member Reviews: 10,339
News Articles: 13,086
Screenshots: 28,871
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News

See News Archives

Community Forum Activity

Games with Gold for November - Count me in
Post by TheOutcast-XBA
1 Replies, 36 Views

Xbox One Edition Limitee Borderlands The Handsome Collection
Post by oryanphine
1 Replies, 45 Views

Xbox One Edition Limitee et controllers
Post by oryanphine
3 Replies, 63 Views

GOW 4 Horde Credit and XP Earn Rate Updates
Post by Nato King
1 Replies, 72 Views

Post by Nato King
1 Replies, 66 Views

Red Dead Redemption 2 releasing Fall 2017
Post by Nato King
5 Replies, 115 Views

Xbox One S Protoype Zebra
Post by oryanphine
3 Replies, 159 Views

Xbox One South Korea Edition Limitee Mother Pearl
Post by oryanphine
1 Replies, 100 Views

Xbox One Official China Edition limitee Lunar New Year Monkey 2016
Post by oryanphine
2 Replies, 110 Views

Xbox Play Anywhere Set up.
Post by Nato King
6 Replies, 178 Views

CONTEST! Win a copy of Worms W.M.D.!
Post by Variation-XBA
9 Replies, 350 Views

The Gears of War 4 Live Broadcast Airs Today
Post by Nato King
7 Replies, 214 Views

Post by Nato King
9 Replies, 263 Views

Spoiler: First 12mintues of Battlefield 1
Post by Nato King
9 Replies, 248 Views

Custom Xbox Addict Controller!
Post by Variation-XBA
8 Replies, 323 Views

© 2000-2016 - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics