38 Studios is in big trouble and Rhode Island may have to foot the bill

As Joystiq has reported, Rhode Island’s government has taken a special interest in Kingdoms of Amalur: Reckoning developer 38 Studios. After the state’s 75 million dollar loan about a year and a half ago, hopes were high that the developer would create new jobs. But others, like the state trasururer Frank Caprio, were concerned that such a big investment might backfire and mean that taxpayers would have to foot the bill if the studio went under.

Well, here we are. Despite the game’s successful launch, it seems that the studio may not have made much money in revenue from the project. The Rhode Island goverment is scrambling to try to keep the studio afloat for the good of their citizens who would be forced to pay the 112 million now owed. 

This story is obviously upsetting for members of that studio and fans of their game, but it also reflects poorly on the industry and may have further repurcussions. The reason the studio moved to Rhode Island from Massachusetts was  to secure the loan and develop more jobs and thus bigger and better games. Now that they’re on what seems like the brink of collapse, other states may be more hesitant about supporting developers. Hopefully, the studio’s work with the goverment will keep it operational and help it bounce back.