OK

From WPRI

After days of controversy and turmoil surrounding the fate of 38 Studios, all of the employees at Curt Schilling's gaming company received pink slips.

Information is still coming into the Eyewitness Newsroom. However, we have confirmed from several sources that all 38 Studios employees in Rhode Island and Maryland were informed about the layoffs Thursday afternoon.

The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.

This news shouldn't be seen as something to laugh about since hundreds of people are going to be losing their jobs. What should be noted though is that he was a Republican who bragged about never needing handouts.

From Yahoo news

Schilling has spoken often of his political views and has campaigned for Republican candidates, though he's registered as an independent. In a March interview on Fox News, he criticized big government and said he's never sought a handout but praised the loan guarantee his company got in Rhode Island.
"I will tell you that the growth of our company 38 Studios is government doing — gone right," Schilling said.
The problem with 38 studios is the same thing that's being decried by many Republicans, spending more than it took in. Their first (and only) project was Kingdoms of Amalur which only sold about 330,000 in the U.S. during the first month. Multiply it by the usual $60 price tag and that's $19,800,000. That would be pretty good for a start up except for this nugget of info from Giantbomb
Chafee said that the total $49 million thus far loaned to the studio has reportedly been spent, though an auditor will be brought in to ensure that is the case. Chafee estimated that 38 is currently spending around $4 million a month in total expenses.
$4 million a month!! One of my favorite developers Tim Schaffer was celebrating when his studio got $400,000 for his kickstarter project(he got way more money than anticipated but he could still make a game with 400 g). I would kill if Tim could get around $40 million for a Psychonauts sequel, but publishers aren't going to be lining up since the original was a flop despite good reviews. Curt got all this money loaned to him from the Rhode Island govt and then his studio goes down and the taxpayers could have to cover the original $50 million loan to the studio plus interest.

So a lesson for future Republican entrepreneurs. If you want to start a business fine. But don't brag about how you'll never need govt help and then put taxpayers on the line for your failure to keep track of your balance books.

4:18 PM PT: Holy crap, first time on Rec list!! Thanks everybody.

Originally posted to Andy1116 on Thu May 24, 2012 at 03:31 PM PDT.

Also republished by Daily Kos Gamers.

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