38 Studios, the parent of Kingdoms of Amalur: Reckoning dev Big Huge Games, is facing some rather significant financial problems, and they've turned to the state of Rhode Island for assistance.
State governor Lincoln Chafee stated that he has been meeting with studio owner Curt Schilling to talk about 38, but details remain confidential for now.
"We're always working to keep Rhode Island companies solvent, and that's what we're doing with 38 Studios.
"We're working with 38 Studios on different issues. That's all I can report right now."
Why the interest? Back in 2010, 38 Studios was actually founded in Boston, Massachusetts, but the Rhode Island Economic Development Corp. managed to draw the developer to Providence by offering a $75 million loan guarantee, with an interest rate between 6-7.75 percent. Not everyone supported the deal, and a lot of criticism was thrown at its advocates as well as the governor's office. Politics, you know how it goes.
The issue now is that 38 may not be able to pay the bonds as studio founder Schilling originally assured they could. If this is the case, taxpayers will be responsible for the $112.6 million owed, and Governor Chafee will need to ask the General Assembly for help in repaying private investors.
Originally, everyone assumed the studio could foot the bill with revenue generated by game sales. Since its February release, Kingdoms of Amalur has sold roughly 410,000 across all platforms, as reported by NPD. Shortly after launch, Schilling reportedly said, "The only way taxpayers lose is if the company failed."