Kingdoms of Amalur: Reckoning dev may be in trouble - Report

Rhode Island government working with 38 Studios to keep RPG house solvent; Ocean State taxpayers on hook for $112.6M if company fails.

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Providence, Rhode Island-based 38 Studios (owner of Kingdoms of Amalur: Reckoning developer Big Huge Games) may be in financial trouble. A new report from a local NBC affiliate reveals the Rhode Island government has been in discussions with 38 Studios about the future of the company.

Rhode Island is hoping to keep 38 Studios afloat.
Rhode Island is hoping to keep 38 Studios afloat.

"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios," Rhode Island governor Lincoln Chafee told the site.

In 2010, Rhode Island's Economic Development Corporation secured a controversial $75 million in loans to entice 38 Studios--founded by former Major League Baseball pitcher Curt Schilling--to relocate from Massachusetts to the Ocean State.

Governor Chafee called this investment one with "some amount of risk," but has not offered much in the way of specifics regarding the future of 38 Studios, saying only, "We're working with 38 Studios on different issues. That's all I can report right now."

A separate report today at Rhode Island news outlet WPRI indicates that if 38 Studios goes under, state taxpayers will be on the hook for $112.6 million (principal plus interest on the $75 million in loans), spread through 2020.

As of press time, neither Electronic Arts nor 38 Studios had responded to GameSpot's requests for comment.

Kingdoms of Amalur: Reckoning is the first title from 38 Studios. It won a strong critical reception upon release in February and sold 330,000 copies in the United States across the Xbox 360, PlayStation 3, and PC, according to NPD data. Additionally, a sequel is in the works.

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