The last days of Kingdoms of Amalur developer 38 Studios have come and gone following its failure to repay a government-backed loan. As a result, both the company and its intellectual property (IP) are now the property of the state of Rhode Island. The good news is that the studio’s assets are said to be valued at “tens of millions.”
The Financial Fallout
The bad news is that the asset valuation is likely nowhere near the number of millions the state paid in the first place. The state of Rhode Island had initially provided a $75 million loan guarantee to 38 Studios in an effort to stimulate job creation and economic growth within the state. Unfortunately, the studio’s inability to repay this loan has left taxpayers on the hook for the debt.
“We are going to do everything possible to maximize return on our investment,” governor Lincoln Chafee said. “Taxpayers in Rhode Island can have full confidence that if there’s a penny that we can get, or a nickel or a dime, we’ll get it.”
The Impact on the Gaming Industry
The collapse of 38 Studios has had a significant impact on the gaming industry, particularly in the realm of large-scale RPGs (Role-Playing Games). Kingdoms of Amalur: Reckoning was well-received by both critics and players for its rich lore, engaging gameplay, and expansive world. The game was seen as a promising start for the studio, which had plans for a sequel and an ambitious MMORPG (Massively Multiplayer Online Role-Playing Game) set in the same universe.
However, the financial troubles of 38 Studios meant that these plans never came to fruition. The closure of the studio also resulted in the loss of jobs for hundreds of employees, many of whom were left scrambling to find new positions in an already competitive industry. The situation serves as a cautionary tale about the risks involved in large-scale game development and the importance of financial management.
Future Prospects for the IP
Despite the unfortunate end of 38 Studios, there is still hope for the Kingdoms of Amalur IP. The game’s assets, including its code, art, and design documents, are now owned by the state of Rhode Island. This means that there is potential for the IP to be sold to another developer or publisher who could continue the work that 38 Studios started.
In fact, there have been instances in the gaming industry where dormant IPs have been revived by new developers. For example, the Darksiders series was picked up by Nordic Games (now THQ Nordic) after the original developer, Vigil Games, was closed down. Similarly, the Kingdoms of Amalur IP could find new life in the hands of a developer who is passionate about the world and its lore.
Lessons Learned
The story of 38 Studios and Kingdoms of Amalur serves as a reminder of the volatile nature of the gaming industry. While creativity and innovation are crucial, they must be balanced with sound financial planning and management. The failure of 38 Studios highlights the importance of realistic budgeting, careful project management, and the need for contingency plans in case things go awry.
Moreover, it underscores the risks that governments take when they invest in private enterprises. While the intention behind the loan guarantee was to stimulate economic growth and job creation, the outcome was far from what was hoped for. Future initiatives of this nature will likely be scrutinized more closely to ensure that taxpayer money is used wisely.
Source Joystiq
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