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Rhode Island’s 38 Studios Auction Only Nets $180 Thousand
A post on GamesIndustry from yesterday reports that the first round of Rhode Island’s efforts to bid off shuttered 38 Studios’ assets has only brought in $180,000. That’s a pretty paltry amount considering the bankrupted developer defaulted on a loan of $75 million, and that—after all of its creditors are accounted for—the studio owed a total of about $150.7 million in debt.
The post notes that 95 items were auctioned off, and that there will be two more rounds of auctions to come. But considering how small the first round turned out to be, I wouldn’t bet that the next rounds will make much more of a dent.
Now, it’s important to remember that this loan can be paid back by the taxpayers over a long period of time, lessening the pain 38 Studios’ bankruptcy on the residents of Rhode Island. But in the end, it would’ve been nice if the auction could’ve helped reduce the burden of the government’s bad investment.
Via GamesIndustry
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I get that making games costs a ton of money, but how in the name of Dave did they managed to get 150m in debt making one and a half games?
Who the hell was this guy`s accountant?
Maybe entry into the development bizz kinda knocks you back some. A wise manager would have ensured they had a backup plan in case things didn’t do so well in sales. The building, devs, licenses, research, and all that good stuff must have run the bill up slightly. It’s kinda sad, through…
Yeah I get where the money went, but geez louise, how do you get yourself in that situation? there are freaking banks going bankrupt with less debt than them.
Figure at some point Curt Schilling would look and consider how insanely over his head he was.
Lol. Good point. I really need to play that game to see if it was worth the trouble.