Ex Redsock Curt Schilling’s Video Game Company Faces layoffs

Now that I’m on the subject of sports, the former pitcher of the Boston Redsocks has a game developing company called 38 Studios that has let go of people and defaulted on their mult-million dollar loan, according to Rhode Island Governor Lincoln Chafee. After a meeting with Rhode Island Economic Development, he declined to say how many jobs were lost, but added, “I believe it was a mix of who made payroll and a number of layoffs.”

Even though 38 Studios is based in Providence, Curt Schilling is not thinking about taking a bailout from Rhode Island taxpayers. He told FoxBoston, “We’re not asking the taxpayers” for more money.

However, in 2010, the game developer who made “Kingdom of Amalur: Reckoning” accepted a whopping $75 million loan guarantee, and the company has already used up $50 million of it.

On top of that, they missed a payment on May 1. Now state leaders are attempting to keep the company from going down the toilet. Governor Chafee was skeptical of the loan at the time it was given and noted that the video game industry is tough and competitive. State politicians and 38 Studios are keen on keeping the fiasco under wraps. What’s new?

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11 years ago

not to mention, this is an enomuors gamble on the part of RI. Gaming companies either hit it big or go bust at a rate much higher than most verticals. This is part of the reason they aren’t attractive investments for VCs their hit rate is very small. Chances are real good that RI will be out 75Mill But typical government decision makers aren’t as smart as good VCs so they bit. And, for what? 450 jobs? That might mean $4M/year in tax revenue for the state coffers in 2 years time? what a horrible return for that much risk.Suckers.