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Rhode Island to sell Kingdoms of Amalur IP

Rhode Island to sell Kingdoms of Amalur IP

Kingdoms of Amalur: Reckoning was released in early 2012 and received a positive critical reception.

The state of Rhode Island is getting ready to sell the Kingdoms of Amalur intellectual property that it seized from bankrupt 38 Studios.

According to The Providence Journal, the lawyers holding 38 Studios in receivership have stated that there is interest in the Amalur assets and it is unable to predict exactly what their value will be.

Rhode Island is currently trying to recoup $130m in debt that was caused by 38 Studios going under in May 2012. The Amalur developer was also sued for fraud, by Rhode Island, with the state accusing the studio of knowing that it was heading for bankruptcy during loan negotiations as far back as 2010.

The game developer's bankruptcy resulted in them owing a total of $150m to creditors, with the studio only having $20m in assets at the time. Rhode Island has managed to raise $830,000 from the sale of some of the studios' assets so far.

38 Studios had originally been given support with the intention of kicking off a Rhode Island-based games industry and the Rhode Island Economic Development Corporation approved a $75m guaranteed loan to the developer in 2010.

The developer's only released game, Kingdoms of Amalur: Reckoning, was released in February 2012 to a warm critical reception. The single player MMO-like game used an art direction provided by Todd McFarlane and was based on a brand new IP developed by 38 Studios.

A second title, MMO Project Copernicus, only ever saw the release of an early trailer. Former 38 Studios head Curt Schilling previously told press that it was going to be the 'first triple-A hundred-million-dollar-plus free-to-play, micro-transaction-based MMO'.

2 Comments

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rollo 21st May 2013, 13:29 Quote
They will struggle to get the cash back as the IP there selling made not even half of what they paid for it.
Neogumbercules 22nd May 2013, 06:05 Quote
This is why it's such a bad idea for States to gamble with taxpayer money on ill-conceived "incentives" to companies. My state just paid a multi-billion dollar hedge fund company (which is owned by a multi-billionaire) $115m to move from the town of Westport to Stamford (basially equal to moving across the street). $25m of the taxpayer "loan" will be forgiven if the hedge fund creates 1000 jobs over 10 years (and we all know how fudgey the whole "jobs created" statistics are). This was done to keep them from moving out-of-state.

The State of Connecticut plans on re-couping on that investment of taxpayer money by 2031-2036. Meanwhile the state budget is running a deficit and major aspects of our government that people actually care about (like our education fund) is underfunded by about a billion dollars.

CT is regularly rated at one of the worst states in the country to start a business in. Solution: bribe billionaire megacorps (Jackson Labs is another one) to hang around while small and medium sized business owners are buried under an ever-increasing tax burden. Hartford, Bridgeport and New Haven schools are in shambles and have something like a 40% dropout rate. You hear that, Governor? Stop paying off billionaires, we need that money for all the new up and coming welfare burdens you're creating!

/rant
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