lincoln-chafee
Latest
38 Studios employees unpaid since May 1, health insurance ends on Thursday
38 Studios employees have not been paid since May 1 and their health care will end Thursday at midnight, a source with knowledge of the situation tells Joystiq. Employees are normally paid on the first and 15th of each month.When asked if the studio would be shutting down this week, the source could only say, "Unknown at this time. Outlook is not good."We're informed that 38 Studios' MMO, "Project Copernicus," announced by Rhode Island Gov. Lincoln Chafee as launching in June 2013, did have that date as its internal target. However, "Whether this is realistic or not is up for debate."Gov. Chafee said in a press conference today that he would do what he could to prevent the studio from shutting down. Will the studio still exist within a month? "I have no idea," our source replied.
RI governor confirms 38 Studios layoffs
Rhode Island Governor Lincoln Chafee has confirmed layoffs at 38 Studios. The governor made the statement this evening following a scheduled meeting of the Rhode Island Economic Development Corporation (RIEDC), where about as little happened to resolve 38 Studios' troubled situation as at last Wednesday's "emergency meeting."On Friday Gov. Chafee held a surprise press conference about 38 Studios, in which he said the government was done providing easy money for the developer, and gave "Project Copernicus" a launch window of June 2013.WPRI reporter Ted Nesi told Joystiq that Gov. Chafee confirmed the layoffs, but was ambiguous about whether employees at the studio were being paid.38 Studios continues to remain silent and has not made any official statement about anything since this whole mess started early last week. According to the AP, 38 Studios founder Curt Schilling brushed past reporters on his way out of the meeting this evening, saying there was "misinformation" he couldn't clear up in a sound bite.Not at all coincidental, Warner Bros. owned Boston-area MMO developer Turbine will hold a recruitment event at the Hotel Providence Tuesday night from 5-9PM. The studio currently has over 50 open positions.We continue to leave the line open if 38 Studios or any employees wish to share their side of what's going on at the developer.Update: Avalanche Studios, which opened up a studio in New York last year, will also hold a recruitment drive at the Westin Providence Hotel on Thursday, May 24, from 12-7PM.
38 Studios' Project Copernicus to release in June 2013, says RI governor
It is not every day that a U.S. governor is the one to announce the launch window for an MMO, so savor the weirdness while you can: Rhode Island Governor Lincoln Chafee announced at a press conference that 38 Studios will be releasing code-name Project Copernicus next summer. "What I understand is Copernicus is June of '13," Chafee said. He also stated that he thought the financial deal was a "risky enterprise" from the start. 38 Studios Founder and Chairman Curt Schilling said on Facebook that rumors of his using the state funds to repay his personal investment in the company was "not true." In a separate post, Schilling attempted to set an optimistic tone: "We will find a way, and the strength, to endure." We have been following the financial turmoil that 38 Studios is in following its default on paying back Rhode Island for its $75 million loan. The studio and state are looking for options, but in the meanwhile, 38 Studios has been struggling to make payments by holding back employee paychecks and seeking additional capital from private investors.
Rhode Island governor gives 38 Studios' Copernicus MMO a June 2013 launch
Rhode Island governor Lincoln Chafee told attendees of a 38 Studios-related press conference that the long awaited 38 Studios MMO – only known currently as "Project Copernicus" – is set to launch in June of 2013. Chafee said, "What I understand is Copernicus is June of '13."Considering we've literally never heard any information on the Amalur-based MMO (aside from the fact that it's an Amalur-based MMO), it's a bit hard for us to believe that the game will arrive by next year. "I said from the beginning that it was a risky enterprise," Chafee told press of the troubled business deal between 38 and Rhode Island.38 Studios is supposed to start paying back its $75 million loan – facilitated by the state of Rhode Island and supported by bond investors – by the beginning of 2013. It's unclear how 38 will afford those payments, but Chafee repeatedly pointed out 38's intention to seek private capital (read: more money from private investors – and not from the state). Said private capital has yet to be secured, Chafee said.
38 Studios successfully pays $1.125 million to Rhode Island
38 Studios's $1.125 million check to the state of Rhode Island has cleared, governor Lincoln Chafee announced during a press conference this afternoon, thus fulfilling the first required payment on the studio's loan from the Rhode Island Economic Development Corporation.Rhode Island is changing its legislation on tax breaks, closing loopholes pertaining to state funds being used for motion-picture endeavors, Chafee said. The state's interest lies in protecting the taxpayers, balanced with keeping 38 Studios solvent, since "taxpayers have had a very generous deal for 38 studios," Chafee said."It's time for them to go out and get private capital funding," Chafee said. "That's the deal. It's a generous deal, but stick to it."Rhode Island officials believe that the total of the $49 million loaned to 38 has been spent. Chafee said that until late April, meetings with 38 suggested that they would make their May payment. "I want to make sure we're doing everything possible to make sure 38 doesn't fail," Chafee said. "We're in deep." Everything possible except giving them more money."There's not going to be any money from the state. They're not coming here for easy money."According to Chafee, "Basically, the access to private capital hasn't materialized."38 Studios' next payment is a debt service payment due November 1 of $2.6 million, and Rhode Island officials believe the studio will have the capital to cover it.38 Studios will then owe $12.6 million in full annual debt service in 2013, and "that's on their dime," officials said.Chafee said he recognized the risk involved in starting a new gaming studio, but the state would have benefited greatly from the studio's "huge success" had it done well."I said from the beginning that it was a risky enterprise," Chafee said. Regarding how 38 Studios will function if it doesn't have the funds to pay its employees, Chafee reiterated, "Again, these are the ramifications of being in a risky business."Chafee doesn't plan on taking a gamble of this nature again: "Never, never ever. Not under my watch," he said.
Rhode Island gov working hard at 'keeping 38 Studios solvent'
Reckoning, indeed! A developing story out of Rhode Island has Governor Lincoln Chafee talking in uncertain terms about the financial condition of Curt Schilling's 38 Studios, which the state gave a controversial $75 million loan to a couple years back to move down to Providence.The Providence Journal reports Gov. Chafee, who was against the loan during his election, spent a "weekend of work on this subject," but wouldn't go into specifics. "We're doing everything possible, like I would for any Rhode Island company," he said this afternoon. The Journal reports he added the work was about "keeping 38 Studios solvent.""We're concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community," Governor Chafee told WPRI.com. "We're working on different issues with them." Asked if 38 Studios' issues could be resolved, Chafee said, "We're working on it."
