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38 Studios IP auction scheduled for December 11
Come December 11, Heritage Global Partners will finally begin selling off the intellectual property of Curt Schilling's 38 Studios. Initially slated for November, the auction was delayed due to "greater than expected" interest from potential bidders. The state of Rhode Island is hoping that this auction will allow it to recoup some portion of the $75 million it loaned 38 Studios, so it only makes sense to attract as many bidders as possible. Among the items included in the auction are sequel and licensing rights to Kingdoms of Amalur: Reckoning, rights to Big Huge Games' Rise of Nations and Rise of Legends strategy games, and "Project Copernicus" which the auction house describes as "an in-development Massively Multiplayer Online Role Playing Game (MMORPG) including a 10,000 year world history, completed character 'races' and playable 'zones.'" Full information on the auction can be found at the Heritage Global Partners website. Initial bids will be accepted as late as 5PM EST on December 4.
38 Studios IP auction moved to December
A planned intellectual property auction for shuttered Kingdoms of Amalur: Reckoning developer 38 Studios has been pushed back a month and is now set to commence in December, GameSpot reports. A specific date for the auction is not yet known. 38 Studios' court-appointed lawyer Richard Land previously called for a delay earlier this month, citing "greater than expected" demand from potential bidders. The upcoming auction will put merchandising rights and revenue for Kingdoms of Amalur up for bid, along with IP rights for the Big Huge Games properties Rise of Nations, Rise of Legends, and the Xbox Live Arcade version of Catan. 38 Studios declared bankruptcy in June of last year after missing scheduled loan repayments. A previous asset auction attracted more than 1,000 bidders, and brought in more than $650,000.
38 Studios lawyer to request delay for IP auction
Richard Land, the court-appointed lawyer for 38 Studios, said he plans to ask a Rhode Island Superior Court judge to delay the now-defunct studio's intellectual property auction. The auction was originally slated to take place on November 14 and include the Project Copernicus MMO that was in development at 38 Studios prior to its May 2012 closure as well as sequel and merchandise rights and revenue for Kingdoms of Amalur: Reckoning. Land told The Providence Journal that interest in the auction has been "greater than expected" from prospective bidders, leading to the request to delay the auction for "a couple weeks." The auction was also slated to include Big Huge Games properties Rise of Nations, Rise of Legends and XBLA game Catan.
38 Studios asset auction may be delayed due to high demand
When companies die, their assets are sold to make back whatever money can be recovered. That's normal. But you wouldn't expect a great deal of interest in the intellectual property of a company that had worked on only two games and actually released just one of them. Apparently that expectation would be wrong; Richard Land, the attorney in charge of selling off 38 Studios' holdings, has requested that the IP auction be delayed due to greater interest than expected. For those of you who had forgotten the details, here's a recap: The sale of these assets are part of an attempt by the state of Rhode Island to recover some of the enormous losses when 38 Studios went bankrupt following a $75 million loan from the state. The auction was originally scheduled to take place November 13th to the 14th. What parties are interested in the IP remains to be seen, as do the offers that have supposedly been put on the table.
Rhode Island EDC implements tracking software following 38 Studios debacle
Following criticism of how it managed its $75 million loan to the now-defunct 38 Studios, the Rhode Island Economic Development Corporation (EDC) is implementing a new client relationship system to help employees track their interactions with businesses. The EDC's board of directors has agreed to pay $84,939 for a year of access to software from Salesforce. The related press release states the new system will help "maintain an accurate, reliable database of companies, improve response times to client requests" and "provide the ability to implement and track performance." The EDC's software plans follow the US Securities and Exchange Commission's investigation of the group's loan to 38 Studios, which Rhode Island taxpayers have already begun repaying.
Jukebox Heroes: Project Copernicus' soundtrack
Out of the many tragedies that emerged from the 38 Studios fiasco was the fact that so much artistry was ultimately abandoned, unseen, and unheard by players. I can't imagine what it would be like to be a composer who spent months working on a full MMO score only to have the studio tank and the music silenced. Well, I can't bring back 38 Studios or Project Copernicus, but today we can at least hear a little of the music that went into the game. As a helpful commenter noted in the Sound Cloud column a couple of weeks ago, Composer Gene Rozenberg of The Witcher 3 fame posted a heap of the (then upcoming) Project Copernicus score on his page. Since it's still there, although not downloadable, I wanted to highlight a few of the best tracks before this too gets erased.
PlayStation Plus gets free Kingdoms of Amalur: Reckoning this week
PS Plus members will be able to snag a free download of Kingdoms of Amalur: Reckoning on PS3 tomorrow. Reckoning is fantasy action RPG developed by Big Huge Games and 38 Studios. The State of Rhode Island will auction off 38 Studios' franchises next month, beginning on November 14. Kingdoms of Amalur: Reckoning is one such property up for grabs, as is the Project Copernicus MMO that 38 Studios was in the midst of developing prior to closing its doors in May of 2012.
38 Studios assets auction dated for November 14
We first got word of an auction to sell off 38 Studios' assets for Project Copernicus earlier this month, but now we have an actual date for the auction: November 14 and 15. This sale will include the Amalur universe IP and all merchandise and sequel rights to the single-player Kingdoms of Amalur: Reckoning, as well as IP rights to the properties of Big Huge Games. If you'd like to buy yourself an MMO, this might be the time. Head over to the auction page for more information.
Kingdoms of Amalur IP auction starts November 14, includes Rise of Nations
The 38 Studios and Big Huge Games liquidation auction will begin November 14, according to the Heritage Global Partners auction services page. Among the assets included in the auction from the state of Rhode Island are the Kingdoms of Amalur intellectual property, namely the Project Copernicus MMO that was in development at 38 Studios prior to its closure in May 2012. Additionally, buyers will be able to obtain sequel and merchandise rights and revenue for the developer's lone release, Kingdoms of Amalur: Reckoning. Other assets in the auction include intellectual property rights for Big Huge Games' properties, particularly Rise of Nations, Rise of Legends and Catan in addition to the studio's Big Huge Games Engine and 38 Studios' Helios platform. The liquidation auction begins at 9:00am ET on November 14 and ends November 15 at 12:00pm ET.
Wanna buy an MMO? Copernicus assets for sale 'soon'
Remember Project Copernicus? Of course you do! 38 Studios may have imploded some 18 months ago, but the ongoing fallout has kept its fledgling MMO and its Kingdoms of Amalur IP in the news ever since. Now, Copernicus assets are about to be auctioned off to the highest bidder via an unnamed website that is currently under construction. "The process is taking longer than we anticipated for a variety of reasons including the complexity of the game itself," attorney and court-appointed receiver Richard Land told WPRI news yesterday. Land also told the news station that he has been working directly with "interested parties," though he declined to comment on a possible sale price.
Amalur IP heads to auction this month
Rhode Island is preparing to sell the Kingdoms of Amalur IP, with a website offering its assets going live this month, 38 Studios' court-appointed receiver Richard Land tells WPRI. 38 Studios collapsed in 2012 after launching Kingdoms of Amalur: Reckoning, taking $90 million of Rhode Island taxpayer money down with it. The main piece of Amalur up for auction will be Project Copernicus, the studio's MMO-in-progress. "If someone is thinking that Rhode Island is going to sell this for millions and millions of dollars, I would have a very difficult time believing that," Joystiq News Editor Alexander Sliwinski told WPRI in a Skype interview. Land is optimistic about the sale: "The bulk of the game and intellectual property I don't believe is stale because the artwork is current, the tech used to develop the artwork is current, the concept is a current concept." Sliwinski warns that the fantastical world of Copernicus may be outdated as the industry shifts into the next generation. The US Securities and Exchange Commission is investigating the $75 million loan that Rhode Island provided to 38 Studios. Rhode Island taxpayers have already begun paying back the loan.
38 Studios loan under SEC investigation
It seems as though we can't go more than a few weeks without hearing about some new complication related to the collapse of 38 Studios and the financial catastrophe it left in its wake. This week's news comes in the form of an SEC probe into the $75 million in loan guarantees offered to the studio by the Rhode Island Economic Development Corporation. The RIEDC has secured the services of a law firm to help it handle the SEC's investigation. Further details are sparse, as the RIEDC has offered only that it "doesn't discuss ongoing matters related to 38 Studios and maintains a level of confidentiality as requested by the SEC." Strangely, the SEC investigation, which launched in early 2012, was not mentioned to investors when Rhode Island published financial documents related to a bond transaction in April of that year. According to the treasurer's spokesperson, the state's treasury was not aware of the probe at that time. The RIEDC is currently involved in a lawsuit against studio head Curt Schilling and former RIEDC members responsible for the 38 Studios deal.
SEC investigating Rhode Island's 38 Studios deal
The 38 Studios epilogue continues with the U.S. Securities and Exchange Commission investigating the $75-million loan provided by the state of Rhode Island to the defunct studio. WPRI reports the SEC probe is examining the taxpayer-backed loan the R.I. Economic Development Corporation (EDC) gave to former Red Sox pitcher Curt Schilling's failed operation. Neither the SEC nor EDC would comment on the specifics of the investigation. EDC spokesperson Melissa Czerwein told WPRI that lawyers were retained to deal with the SEC inquiry and the organization won't "discuss ongoing matters related to 38 Studios and maintains a level of confidentiality as requested by the SEC." Rhode Island taxpayers have begun paying back the loan, which Governor Lincoln Chafee (who inherited the debacle from the previous administration) said the State had a "moral obligation" to do. To the best of our knowledge, Rhode Island continues to hold on the Amalur intellectual property.
Lawsuit against Curt Schilling and 38 Studios allowed to proceed
According to a report in the Boston Globe, a Rhode Island judge has ruled that the state's lawsuit against baseball star Curt Schilling and his merry band of 38 Studios execs will continue, in spite of the defense's movement to dismiss the case outright. The suit, which began in May, was filed by Rhode Island's economic development agency, which alleges that 38 Studios' representatives knew the studio was financially unsound and effectively defrauded the state when it accepted its $75 million state loan three years ago. The studio was working on MMO Project Copernicus before it imploded and defaulted on that loan. Schilling has rejected those accusations and previously called Governor Lincoln Chafee a "dunce of epic proportions" in a daring bout of real-world smacktalk. So what's in it for Rhode Island? Aside from saving face, nothing much, just the reclamation of a cool $75 million in bonds it doesn't want to absorb plus triple in damages from Schilling and other executives. But let's not get ahead of ourselves, Rhode Island; the judge did rule that RI can't sue for the whole package just yet.
Curt Schilling discusses life after 38 Studios
There's not a lot of love in the gaming world for Curt Schilling. The closure of 38 Studios that left the state of Rhode Island with a $75 million debt and hundreds of people out of jobs has colored perceptions. A recent piece from the Boston Globe takes a look at Schilling with a slightly gentler approach, discussing the heart attack he suffered eight months prior to the studio's closure and the stress he's felt over the failure. Schilling once again puts the blame for what happened at the feet of Governor Lincoln Chafee, who he claims failed to help 38 Studios when assistance was required. The article goes into more depth discussing the many assets from Schilling's baseball career that were auctioned off to pay damages, as well as his retirement from public life in favor of coaching his daughter's softball team. Those still interested in the fallout can take a look at the full article for more perspectives from both Schilling and his wife.
Rhode Island set to pay 38 Studios bonds. Probably.
38 Studios collapsed upon itself in a heap of flaming disaster last year, and Rhode Island taxpayers ended up stuck with the bill. The state used a $75 million loan, acquired through the sale of taxable bonds, to convince 38 to operate within its borders, and RI is now on the hook for around $89 million after the studio declared bankruptcy. Some state lawmakers in Rhode Island flirted with the idea of "walking away" from the debt, which is apparently a privilege afforded to a government and not its citizens. However, the state's House Finance Committee has approved a budget that includes, at the very least, making an interest payment of $2.5 million on the debt in May 2014. If Rhode Island is running off the plan it talked about last month, this first payment will be followed by yearly payments of $12.5 million until the debt is repaid. The budget hasn't passed; it still needs to get through the state's House and Senate. Future interest payments will also have to be approved by the state legislature.
Rhode Island holding public hearings over 38 Studios, exploring loan default
The story of 38 Studios as a video game developer is long over, but the financial fallout from its $75 million in taxpayer-backed loans continues in the state of Rhode Island. The Providence Journal reports two developments this week, as the state will shortly begin a public hearing process over the debacle and consider whether it will pay back the loan. House Oversight Committee Chairman Michael J. Marcello said the state will launch the hearing process shortly based on the "thousands of pages" of documents it received this week, in response to a public information request made over a month ago. The committee will focus on two issues: Did the state properly retain an independent, third party to monitor and assess 38 Studios' financial standing? And what happens if the state decides not to pay the loan, which amounts to nearly $113 million after interest. Governor Lincoln Chafee's administration believes the state, which has no legal necessity to pay the loan, does have a "moral obligation." Chafee's proposed state budget (which needs to be approved by July 1) does factor in an initial $2.5 million payment, with $12.5 million paid out over the next seven years.
Rhode Island explores ditching 38 Studios debt
To pay back or not to back, that is the question that Rhode Island is exploring after being saddled with $112.6 million in combined debt and interest when 38 Studios went kaput, taking Project Copernicus with it. RI governor Lincoln Chafee still believes that lenders should get their due according to his spokeswoman Christine Hunsinger, but the administration is gathering data to explore the cost of not paying back to get an understanding of "the ramifications of what that decision would be." Currently the state is planning to pay investors back over the course of 10 years, with a $2.5 million payment the first year and subsequent installments of $12.5 million thereafter.
38 Studios vs. State of Rhode Island court case begins
We'll never see Project Copernicus come to light, and for some people that's the last that needs to be said about 38 Studios. For the state of Rhode Island, however, there's quite a bit more at stake, with the state alleging that 38 Studios tried to hide its financial condition and essentially defrauded the taxpayers of Rhode Island. Opening arguments have been heard today for the case, with the 14 individual defendants seeking to have the case dismissed as completely spurious. When 38 Studios folded, that left Rhode Island in the hole for a $75 million loan. The lawsuit is seeking restitution from Curt Schilling and 13 other individuals, including former members of the Rhode Island Economic Development Corp that originally supported the loan. According to the EDC's lawyers, substantial evidence exists that this loan was based upon intentional misdirection on the part of upper management, although the defense claims these allegations are ridiculous. At this point, it's up to the courts who's in the right.
Rhode Island prepared to sell 38 Studios' Amalur intellectual property
The state of Rhode Island's last keepsake of 38 Studios – beyond a $100-million-plus loan debt – is the company's Amalur intellectual property, which it's planning to sell off shortly. The Providence Journal reports there is interest in the asset, but the lawyer in charge of the sale hasn't revealed a value. Meanwhile, a hearing in the state's lawsuit against the architects of the 38 Studios loan is scheduled for this Wednesday, after studio founder and former Boston Red Sox pitcher Curt Schilling was unable to get the suit dismissed in March. The sale of the studio's physical assets net the state approximately $830,000. Following the sale of the IP, Rhode Island tax payers will have to pay off the rest of the debt.
