Kingdoms of Amalur Earns $713,000 For Rhode Island

[Andy Chalk]

Kingdoms of Amalur Earns $713,000 For Rhode Island

Kingdoms of Amalur: Reckoning is bringing in the bucks for Rhode Island but the state's Republican Party is now demanding a default on the $100 million it owes on the 38 Studios debacle.

38 Studios may be dead and buried but the one game it was able to produce before it cratered, the RPG Kingdoms of Amalur: Reckoning, is still doing a pretty brisk business. Lawyers for the state of Rhode Island, which now owns all rights to the IP, said the game has brought in $713,000 for the state through Steam sales alone. It also raised roughly $430,000 through the auction of computers, office equipment and everything else formerly owned by 38 Studios.

It's a nice chunk of change, but that's really about all it is - pocket change - when compared to the $100 million the state owes as a result of 38 Studios' disastrous collapse last year. Because of that, the Rhode Island Republican Party is now demanding that the state default on its debt, saying there's no legal obligation to pay the bonds it issued to support the loan guarantees that brought the developer to the state. State Republican Chairman Mark Smiley also pointed out that people who bought the bonds can recover their losses through insurance policies that were part of the investment, and said taxpayers shouldn't have to pay for a decision they didn't make.

It was reported last week [http://www.escapistmagazine.com/news/view/124453-Rhode-Island-Wonders-If-Bailing-On-38-Studios-Debt-Is-Doable] that the state administration is considering the possibility of ditching the debt, but Governor Lincoln Chafee and Treasurer Gina Raimondo both said defaulting on the loan could hurt the state's reputation and, one would assume, credit rating. An investment expert is scheduled to make a presentation to a legislative committee on the pros and cons of defaulting on the loan today.

Sources: RIPR [http://news.providencejournal.com/breaking-news/2013/06/money-trickles-in-from-38-studios-game-sales.html]


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[kajinking]

At least some people bought the game but I don't think game quality was ever the issue in this disaster.

 

[theultimateend]

If the bonds were insured then fine.

State Republican Chairman Mark Smiley also pointed out that people who bought the bonds can recover their losses through insurance policies that were part of the investment, and said taxpayers shouldn't have to pay for a decision they didn't make.

So how long are we going to keep paying for GW's decision to fuck-up Iraq?

Hey! It's Obama's war now!

At least that's what I hear at my in-law reunions >.>.

 

[theultimateend]

If the bonds were insured then fine.

State Republican Chairman Mark Smiley also pointed out that people who bought the bonds can recover their losses through insurance policies that were part of the investment, and said taxpayers shouldn't have to pay for a decision they didn't make.

So how long are we going to keep paying for GW's decision to fuck-up Iraq?

Hey! It's Obama's war now!

At least that's what I hear at my in-law reunions >.>.

No wonder the GOP attracts old people, their freaking platform is based on Alzheimer's.

I have noticed in my family that the willingness to accept propaganda is directly related to nearness to social security.

With maybe no exceptions?

My family is largely from the south though, so the data is heavily skewed.

I just happened to grow up in Western Washington where my schools actually tried, nature is all around you, and science is "the cool thing".

 

[kajinking]

If the bonds were insured then fine.

State Republican Chairman Mark Smiley also pointed out that people who bought the bonds can recover their losses through insurance policies that were part of the investment, and said taxpayers shouldn't have to pay for a decision they didn't make.

So how long are we going to keep paying for GW's decision to fuck-up Iraq?

Hey! It's Obama's war now!

At least that's what I hear at my in-law reunions >.>.

No wonder the GOP attracts old people, their freaking platform is based on Alzheimer's.

Glad to see I'm not only one who is basically the the only "liberal elitist" in the family. My grandmother reacted with HORROR when she found out I voted for Obama

 

[Vivi22]

State Republican Chairman Mark Smiley also pointed out that people who bought the bonds can recover their losses through insurance policies that were part of the investment, and said taxpayers shouldn't have to pay for a decision they didn't make.

So how long are we going to keep paying for GW's decision to fuck-up Iraq?

Took the words right out of my mouth. It also scares me a little that government thinks it's okay to simply back out of it's obligations because taxpayers didn't directly vote for something though. Talk about not taking responsibility for their bad choices. Good for the taxpayer if the bonds are insured certainly, but that's not going to be the case with every bad choice government makes, and their willingness to potentially screw over people they guaranteed debt to is somewhat troubling.

Glad to see I'm not only one who is basically the the only "liberal elitist" in the family. My grandmother reacted with HORROR when she found out I voted for Obama

I find this humorous because my grandmother constantly votes for the Liberal party up here in Canada, but I don't think she actually knows why, nor would she actually vote for them if she had a clue what their platform is in each election. It's like the same sort of ignorance that leads to old people voting Republican but a wire got crossed somewhere.

 

[animeprime]

This game is over a year old and the major sales numbers are done. So far they've only managed to recover less than 1% of the money they owe and sales numbers are all downhill from here. How many people will be buying this each month in two or three more years do you think? Especially on consoles? If you're never going to make the money back and the investors are insured you need to default so the state residents don't have to suffer from that debt. Of course I wonder what damage it would do to the states credit rating and if it would be more than $100 million.

 

[1337mokro]

First of all this was a really stupid idea made by people who did not understand the gaming industry and 38 studios which saw a golden opportunity and was blinded to the pitfalls in the small print. They had to maintain a studio several the size they actually needed for such a game, they did not adequately manage their money and they loaned WAY to much. Even if every cent went into this game that is still a ridiculous amount of excess money being spent.

This game basically sold 1.5 million copies. That is about half of what it actually needs to break even according to RI. That is fucking INSANE!!! 1.5 MILLION copies sold and still not even half way. They have maybe in total like a third of the money if we assume they seized the income from those 1.5 million sold. So really there was no way this would ever turn out good with both an idiotic set of demands from a first time studio and a studio trying to make a 100 million dollars with their very first game...

However leave it to the bum Republican to propose to not pay up.

"We signed a contract that required a studio to over staff itself to meet the loan requirements before they had even finished their first game, saying we would loan them the money to do so, but we insured the bonds so who gives a fuck! We get the money back and whoever loaned the money can go fuck themselves! Fuck the federal government! It's not like there exist a world outside Rhode Island and everyone knows it's flat and the center of the universe which does not exist beyond the boundaries of our state. Let's also default on the 200 million in loans that we took out to pay unemployment benefits, fuck the consequences!"

Because we all know, the real bums are the Politicians. Living off of hand outs like the true parasites they are since time immemorial.

 

[Pebkio]

I'm still a bit confused about where the 100 million dollar amount came from. Surely they didn't spend that all on one friggin' game. How many people were on staff? 50? 100? Well they're each really close to being millionaires, right? 100 mil - the studio and equipment which they've sold for 430,000. So... maybe 2 million for the supplies and office for two years? Maybe 3 million... y'know, pad it out? That means, for this game... 97 million dollars went SOMEWHERE! To everyone employed by 38 studios? Into the magical alternate universe portal? WHERE?? Maybe they payed R.A. Salvatore a hefty 50 mil and just doled out the rest.

However, not the point anymore, people should realize that bonds, even government bonds, are not entirely without risk. This "recover their losses through insurance policies" nonsense is just that: nonsense. There is no "absolute guarantee" that an investment is going to pay off, and despite how the Suits in Wall Street act, people shouldn't expect to even get their investment back every time. I think everyone involved is overly greedy.

The investors want all of their investment back as if loaning money was 0-risk.
The RI politicians want 100 million and not to cover any loss on their loans as if they aren't accountable.
38 Studio employees apparently became rich as hell as if the actual $100 million actually existed.

The RI government should just keep the 1.something mil they've already made and refuse to pay any of the bond holders anything like fucking criminals running a scam and then no one should vote for the sceezy asshats ever again and maybe the investors should start doing some actual research before they throw money at crooks.