38 Studios Will Not Face Federal Criminal Charges

38 Studios, the publisher behind Kingdoms of Amalur: Reckoning, will not face criminal charges as the company did not break federal laws. However, Rhode Island Police are still conducting their own investigation to find if the company broke any state laws.

38 Studios collapsed after it failed to meet its loan repayments owed to the US State of Rhode Island. The State had given 38 Studios a loan amount of $75 million to invest in an effort to create employment within the State.

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After the studio collapsed it was found that 38 Studios owed over $100 million to Rhode Island. A total of approximately  $272 million is the total amount of debt that 38 Studios and Big Huge Games, a subsidiary,  owed to both the state government and banks who gave further loans.

The collapse of 38 Studios led to the loss of  almost 300 jobs and the cancellation of MMORPG ‘Copernicus. However, companies like Epic Games and ZeniMax studios offered the affected staff jobs at their studios.

Source: Gamasutra

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2 Comments

  1. damn, things are worse there than i thought.

    but a loan of $75 million and they owed $100 million when they went under?
    that’s like 33% interest isn’t it?
    seems a bit high to me.
    but then i have little knowledge of these kind of high finances.

    • Could be compound interest over say three or four years at about 7.5%.

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