Curt Schilling's 38 Studios Struggling Financially
medv4380 writes "38 Studios, run by Curt Schilling, is having a hard time paying its bills and employees. The gaming community hasn't been happy with the company since the issue with an Online Pass for Single Player Content, which we discussed previously. Now, 38 Studios has bounced a check intended as a payment on its $75 million loan from the state of Rhode Island. If the company defaults, Rhode Island taxpayers will have to cover the loan and interest, which could total nearly $100 million."
Why do we care about this?
For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
Jesus people.
It's Schilling.
...foreclose on the sucker, and sell the shit off. should be a no brainer to me
They should have had a deeper crafting system, and fixed some of the oddities. I would have bought ALL the DLC if they had done that.
Seriously, my smithing is maxed out to 10, and I'm getting bottom rung components when I break up top of the line armor and weapons? It's like I became a smithing god when crafting a weapon, but when it's time to disassemble something, I turn into a three year old with a mallet.
The detection skill was a good idea, though.
Is there ever going to be a time when the pols realize that throwing massive tax breaks at corporations is a bad idea for the state/city/country they're supposed to be representing?
And BTW everyone in MA and NY knows about Schilling, the bloody sock, the piano in the lake, and a record-setting choke which led to the end of an 86-year curse.
https://app.box.com/WitthoftResume Code: https://github.com/cellocgw
Quick, someone tell Curt to auction off his bloody sock!
This is what it looks like.
http://www.youtube.com/watch?feature=player_embedded&v=BZ_6PkeO_g8
"It's like you're running away."
--
BMO
Sounds like anyone who avoided their game dodged a serious bullet, and now this is the logical result. Learn the lesson Mr. Shilling - you brought this entirely upon yourself.
I was sympathetic until I got to the Rhode Island loan guarantee.
Which reminds me -- for a proper response I need a popcorn icon. Get with the modern, Slashdot!
(-1: Post disagrees with my already-settled worldview) is not a valid mod option.
"There can be no question our country is in the worst economic crisis of our lifetimes. I also think there can be no question that it falls on us, the individuals, to find a way out of our own personal crisis." - Curt Schilling
It well and truly stinks that this man was ever allowed within ten feet of public funding in the first place. Even more confusing, though, is that he even pursued public funding in the first place.
It's enough to make one think that he never really believed the anti-gubmit pablum he was spouting in the first place.
Obliteracy: Words with explosions
Paying companies to relocation is a win for owners a loss for working stiffs. In the best scenario, tax payers in the new community get the benefit of more jobs at the expense of subsidizing millionaires. The old community losts the jobs the new community gains.
In this case, not only did the new community not gain jobs in the long term, but they are now responsible for $100M in loans. Brilliant job.
I like free markets. I have government in bed with big business.
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
There was a good reason Curt couldn't get any VC funding
But I'm sure Rhode Island Governor Donald Carcieri has a lot of experience funding tech startups...
http://www.usatoday.com/sports/baseball/story/2012-05-18/curt-schilling-38-studios-payment/55060556/1
FTA:
Gov. Lincoln Chafee (CHAY'fee) announced on Friday that the check from 38 Studios cleared.
All of us techies living in Mass. saw this coming. You had a sports celebrity non-businessman CEO on one side, and unsophisticated investors on the other who happened to be controlling $75 million of taxpayers' money. The agreement they signed pretty much compelled 38 Studios to build the payroll to an unsustainable level (since the state was trying to hoping to create a local tech industry) and thus burn money as fast as possible. Elementary budgeting and accounting skills were lacking.
All I can say is good riddance. I'm glad that a shitty game with an even shittier DRM practice is not rewarded. We should be happy about this.
Remember all the hub-bub that KoA was getting about even though it was single player you couldn't get 1/3 the game unless you purchased new? Yet all of a sudden, even though it's average score was a 7, it was getting rave or good comments all over every game sites message board. The astroturfing was so obvious and egregious. And the problem was, it was so prevalent and everywhere people actually genuinely believed it was a good game.
What pissed me off more though is that everyone was carrying torches the day before it was released about the DRM, and then "they just bent over and took it."
So I say good riddances and thank god. Because if that game sold well, you know damn well that would open the floodgates to needing online passes for single player games forever on...consoles!
Ugh.
http://www.youtube.com/watch?v=KQRxxd74yCk
He should be focusing on his business instead spouting out unneeded advice on running the Red Sox.
You would think that some might have learned from the DotCom bubble and not go about it the very same way the Silly Valley did a decade ago. That's my two-Schillings worth.
jsut athnoer menagiensls ltitle psrhae for you to dcoede. Why do we wtsae our tmie dnoig tihs?
I'm a little unclear on why so much. Only $50mil in loans have been paid out, but most articles suggest that taxpayers would be on the hook for both the loan AND the interest. Isn't the loan *from* the taxpayers? I understand that the budget might be $100mil *short* of its intended level as a result, but the taxpayers should only really be down the $50mil in cash that they've actually paid out.
Can someone with a better understanding of this kind of economics explain?
There are plenty of games that are not like that. While some publishers are trying for that crap, others are not and some are emphatic about not doing it. So buy games that don't do that. IF we vote with our wallets, it will work itself out long term.
Teabaggers are normally self important blowhards who expect everyone else to sacrifice for their benefit.
This pisses me off to no end. I'm not a big fan of Bob Watson but I agree - I think former Governor Carcieri was starstruck and pushed this deal through.
And how curious - I wrote a blog post with a pro forma estimate of how much they should have burned through using 20 employees as my benchmark. It's been in operation for about a year now, and they did make $60 million on that game, probably half that was profit So Schilling got his $30 million investment back. But then there's the matter that of the $75 million, even at the 150 actual employees, they would only have spent about $40 million. So there is something going on here and Schilling should be on the fucking hook for this.
Mark my words, 38 Studios will fold. And Schilling will come out smelling like a rose. Meanwhile the State of Rhode Island and Providence Plantations will get left holding the bag, and we the tax payers will be each saddled with $100+ of tax increase to cover this ludicrously bad investment.
Their first release is "Every Other Action RPG Ever Made". It's nothing new. It's Every Other Action RPG Ever Made. It's a 5 or a 6 on a ten-scale.
Ok, so you're Curt Schilling with your shovelware of a game, and you're gonna have EA publish the thing. EA, the most hated game publishing company of all time. AND you're gonna have the sack to ask for $59.99? On a title developed by a company nobody's heard of that's run by a bored baseball player? AND you're gonna deploy DRM? AND you're gonna play the retarded EA DLC / content lock games with us? With all the preorder bonus / Mass Effect 3 cross promotion trimmings? On your first time out? ON YOUR FIRST FUCKING TIME OUT, CURT?
It's not like 38 was some kickass company that sold out to a major publisher and got shittier and shittier over time. They drank the asshole sellout money-grab who-cares koolaid from day one, and they weren't shy about it.
It's like they purposefully exited the race gate, cut across 5 running lanes, made a mad dash off the track for the gamer killing grounds, only to shoulder-check Bioware off the chopping block, and look up at the executioner screaming "Me! Me Next! No, Me! My turn!".
Well, okay then. If you insist. Chop, motherfucker. Just don't have the audacity to suddenly look confused and try to scream "PIRACY!" before the blade drops.
Thanks for fucking up Rhode Island's economy.
http://www.joystiq.com/2012/05/18/38-studios-successfully-pays-1-125-million-to-rhode-island/
It's actually a loan from bonds that have been sold, and those bonds have set interest rates on them. The bonds where just issued and insured by the state. The state would be on the hook for paying back the money on any bonds that were sold along with the interest. The State may have money that wasn't dispersed yet but they owe the interest on any bonds that were sold. Worst case they owe 100 million.
Are these guys also with EA if not they sure must be taking their cue from the same playbook, piss off as many gamers as they can all the way to bankruptcy.
Looks like they made the payment now. They are likely still in trouble in the long run, but seem to have fixed this problem temporarily. http://news.providencejournal.com/breaking-news/2012/05/ri-gov-chafee-3.html
So not only did he "negotiate" RI into loaning his startup $75M (which was a huge chunk of their $125M jobs-development budget, and was pretty controversial at the time), he did so claiming he'd sunk "$35-$38 million" of his own money into the company.
Turned out, the figure was closer to $3M, and he promptly paid himself back with the RI loan money, removing any personal stake in the success of his company.
Why would anyone engrave "Elbereth"?
I did a phone interview with 38 Studios for a developer position early on (didn't take it, I had actually sent in my resume when it was first announced and literally took them a year to get back to me, at which point I was no longer interested). When I asked them about their development progress, the respose was something to the effect that they had dozens of artists industriously creating content, but very little actual software development had taken place. This suggested to me that the technical leads were maybe not so great in the software engineering/project management skills required to pull off a project of the scope of an MMO. Unfortunately, it seems I was right.
With your "1 billion people" you are waaaaaay over estimating the number. The other guy is right, baseball is a sport which is mostly highly regarded in very few countries, and expecting people to know who schilling is, is the depth of arrogance. Yes slashdot *WAS* an US predominantely visited site back a at foundation. Now ? There is enough people from other country to warrant that thinking in an US-centric cultural mindset knowledge is stupidly snobbing a sizeable part of your audience. So the snarking reply to the guy who asked "who is shilling" are typical of the guy which never go out of his basement and think that his specific local knowledge is common knowledge. No it is not. Now go outside smell the free air , and recognize that US folk are NOT the sole reader of slashdot. Heck, are they even the majority now ? In a few years ?
'cause I haven't really seen anyone that WASN'T a journalist bitch about that so-called online pass. You know why they didn't BECAUSE IT WAS NOT AN ONLINE PASS IT WAS FREE DLC FOR BUYING THE GAME NEW! You could play the game completely without the so-called "online pass". All the code added was one quest-line that was a DLC quest. F*ck's sake you don't even read your own articles do you?
According to Wikipedia:
Considering all Latin American countries baseball fans except South America but including Venezuela, that's gives us a rough estimate of only 37% of the Latin American population being baseball fans. You're not helping in your 'Americans aren't insular' campaing. ;-)
I'm a little unclear on why so much.
I'm still not sure why they gave them a loan to begin with. Don't most "Tax incentive packages" involve a grace period of simply not paying local / state/ real estate taxes ? Since when do they flat out become the venture capitol ?