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Steve Danuser weighs in on the 38 Studios debacle
It's been one hell of a month for the folks at the now-bankrupt 38 Studios, but so far we've heard precious little from anyone directly involved with the Project Copernicus developer. Today, 38 Studios' former Creative Director, Steve Danuser, has broken that silence with a post about the matter on his personal blog. The post doesn't really do much to shed any light on the events that led to the studio's fall, but it does provide one thing that has been lacking: A look at the people affected by the debacle. Danuser takes the time to talk about the rollercoaster of emotions that he and other 38 Studios employees have been riding for the better part of the last month, stating that "the only people who really understand are the ones who make up this now fractured fraternity that was once a great team." It really is a very personal read, but it adds a fresh, human perspective to a story that has, until now, been addressed only from the angles of finance and industry. To read it all for yourself, head on over to Danuser's blog. Oh, and if you're the emotional sort, it may help to have some tissues handy.
38 Studios declares bankruptcy, law enforcement investigating [Updated]
38 Studios, in a move surprising absolutely no one, has declared bankruptcy. This report comes hot on the heels of the news that the Project Copernicus developer has laid off all of its employees and sold Big Huge Games. In addition to covering the bankruptcy, the Providence Journal revealed that "state and federal authorities have launched an investigation into [the company]." State police Col. Steven G. O'Donnell states that the inquiry is taking place "to investigate activities that have recently come to light at 38 Studios." According to the Journal, these activities include taking out loans totaling $8.5 million US "based on state film tax credits that had not yet been issued." Things are looking pretty grim for Curt Schilling and his studio, but we'll just have to stay tuned to see how the rest of this plays out. [Update: Our sister site Joystiq reports that the Rhode Island governor has stated, "We are going to do everything possible to maximize return on our investment [...] Taxpayers in Rhode Island can have full confidence that if there's a penny that we can get, or a nickle or a dime, we'll get it." The company is suspected to be worth "tens of millions of dollars."]
China's online gaming industry booming; $6.1 billion expected in 2012
While recent events may have some questioning the state of the MMO industry in North America, a recent study by Asian game market analysis company Niko Partners shows that the industry in the Chinese and Southeast Asian markets is still going strong. In fact, the study reveals that the Chinese online gaming market alone is set to bring in a whopping $6.1 billion US in 2012 alone. So what is the reason behind the Asian market's continued success? According to Niko's reports, a good deal of credit should be given to the free-to-play business model. The F2P model reportedly encourages fledgling gamers to move from more casual social games to "advanced casual" games such as MMORPGs, resulting in a larger pool of money-spending players. Also of note is the fact that the use of internet cafes is declining in major cities. Whereas internet cafe revenue once made up "at least 50%" of gaming revenue, by Niko's current estimate, "up to 2/3 of revenue comes via the home channel." The full article offers interesting insight into one of the largest online gaming markets in the world, so if that sounds like your cup of tea, head on over to Forbes and give it a read.
Gambitious launching itself as a game-focused crowdsourcing center
Crowdsourcing is becoming the new trend, with Kickstarter projects serving as the new hotness for getting a game start-up funded. So it's not hard to understand why Gambitious is promoting itself as an alternative to Kickstarter, specifically as a means to fund game development via crowdsourced projects. Gambitious has more to it than just the idea being a game-focused alternative to the Kickstarter giant, however; it includes an option for investors and backers to take part in equity funding. Traditionally, Kickstarter backers receive only a few bonuses for funding a project, and if that project goes on to wild success after the initial funding, the backers are left out. Equity funding allows people to play a more traditional venture capitalist role, investing money in return for dividends on successful projects. While this option is available only in Europe at the moment due to legal issues, it's a new take on funding a game, and depending on future developments, Gambitious might make a name for itself in the indie gaming market.
Switched On: Cisco's hard-luck hardware
Each week Ross Rubin contributes Switched On, a column about consumer technology. When you think about companies that dominate specific technology markets, alongside names such as Apple, Microsoft, Facebook, Google, Intel. SAP and Oracle, you would no doubt include Cisco Systems. Founded in 1984, the networking giant, which has grown largely via acquisition over the years, earned $43 billion of revenue in 2011. That placed it at #64 on the 2011 Fortune 500. Cisco has a current market value of about $113 billion. Linksys, acquired in 2003, has remained among the top-selling home networking brands, and Cisco recently moved to bolster its TV service provider business -- formerly known as Scientific Atlanta -- with the acquisition of NDS. But for all the success that Cisco has had building connections among network endpoints, the company has had a tough road when it's come to selling end-user devices directly to end-users over the last few years.
PicPlz shutting down permanently on July 3rd, all photos to be deleted pre-fireworks
Already prepping to share oodles of horribly blurry and underexposed Independence Day photos via PicPlz? Go ahead and burst your own bubble, bub. The aforesaid photo sharing app / site has decided to throw in the towel, with a brief blurb posted on its site today describing that July 3rd will be its final day of operation. To quote: "On July 3, 2012, picplz will shut down permanently and all photos and data will be deleted. We have provided download links for existing users to save their photos. Thank you for your support of picplz and we apologize for any inconvenience this may cause you." Users are encouraged to login prior to that day in order to download their photos, including those ones of you shooting Instagram and Facebook Camera in the face. Violence isn't cool, but who are we judge how your grieve?
Zynga CEO Mark Pincus says 'no thanks' to console gaming, isn't worried about a life detached from Facebook
Zynga CEO and founder Mark Pincus just took the stage here at D10, and in a wide-ranging interview with Kara Swisher, he sidestepped conversation about Words With Friends and Farmville long enough to touch on the murky world of console gaming. In a bid to quell any potential surprises at E3 next month, Mark said outrightly that his company is not interested in getting into the console world. "We're aiming for you," he said while pointing at Swisher. "We're going after the mainstream market. There's too much friction [in the console world]." He also made clear that he tries to not look too far ahead of where the world really is. When talking about the undeniable shift to mobile, he made clear that there's still a huge amount of desktop traffic on Zynga's games -- "lots of people play while bored on conference calls at work," he quipped. It's an interesting viewpoint in a world where PSN and Xbox Live Arcade has given independent developers all new distribution platforms to reach users, but it also highlights the outfit's intrinsic attachment to Facebook in particular.
R.A. Salvatore: Project Copernicus would 'blow you away'
The future isn't looking particularly bright for 38 Studios and its in-development MMO Project Copernicus, but the game's writer, esteemed fantasy author R.A. Salvatore, took to the comments on a post on Daily Kos to tell everyone how great the game would have been. Salvatore claims that the game is "much further along than is being reported" and that he wishes he could show us some of it (though sadly, he cannot). He goes on to state that the developers behind Copernicus were "an amazing team of [developers]... pushing the envelope in their respective fields" and that "the environments, the animations, and the game-play would blow you away." Unfortunately, it's looking like we'll never get to judge the veracity of Salvatore's words for ourselves, but the statements do help to shed a bit of light on what might have been.
Sony formally quits Sharp LCD joint venture, takes back every yen it invested
After Sony cut off its supply of capital to the ill-fated Sakai production plant that it jointly owns with Sharp, it became clear that the final goodbye may be little more than a formality. And here it is, in the form of a cold, resolute press release stating that Sony is selling its seven percent stake back to Sharp and taking back the 10 billion yen ($126 million) it originally invested. The only reason given is the "rapidly changing market for LCD panels and LCD televisions," which is a polite reference to the fact that profits from big TVs are well below what these companies predicted back in the heady days of 2008 and early 2009, when the impact of the global economic crisis loomed without yet being fully apparent. Fortunately for Sony, which is in the delicate stages of reform, the solid pre-nuptial agreement it had in place with Sharp should protect the company from having to revise its financial forecasts for the coming year -- not that those were particularly great in the first place.
38 Studios appears to be getting no new help
The bad news continues to accumulate for Rhode Island developer 38 Studios. According to Rhode Island governor Lincoln Chafee, the company has received a grand total of no outside investment. It also has not received any of the tax credits that it requested, leaving the studio still deep in the hole. Chafee has stated that he is doing everything in his power to prevent the studio's closure. Staff members are also leaving the company at an alarming rate, with CEO Jen MacLean and senior VP of product development John Blakely both confirming their departures from the company. The hiring of both individuals was trumpeted as a mark of success as recently as March of this year, and Blakely was still employed by 38 Studios as recently as Monday evening. There's even talk of the company's health insurance running out. None of this news suggests that Curt Schilling's company will make a quick turnaround -- if indeed it makes a turnaround at all.
Opening the Book(Book) on Twelve South: between the covers of a Mac-exclusive accessory maker
The year is 2009. In history books, it'll widely be recognized as the year that most of America -- heck, the world -- would prefer to forget. Job after job was lost, bank after bank fell, and humanity as we knew it plunged into "the worst recession since the Great Depression." It's also the year that Palm attempted a comeback with webOS, and as it turns out, the year that yet another accessory company was born. While such an occurrence may be forgettable on a macro scale, economic researchers and lovers of technology alike have reason to take notice -- and, indeed, ask questions. So, that's exactly what I did. Beyond growing a technology startup in a me-too field during the worst economy that I've personally been a part of, it's also not often that I find compelling consumer electronics companies far outside of New York City and San Francisco. Twelve South just so happens to be located in a nondescript nook in Mt. Pleasant, South Carolina -- just a beautiful trip over the Arthur Ravenel Jr. Bridge from historic Charleston. Three years after its founding, the company now fittingly counts a dozen employees on its roster, and despite entering a market flooded with iAccessory after iAccessory, it has somehow managed to grab its own slice of an increasingly large niche. As with all good success stories, this particular outfit has plenty of twists, turns and run-ins with Lady Luck to tell about; for those interested in seeing how the "stay small" mantra is keeping Twelve South firmly focused on the future ahead, take a peek beyond the break.
ArenaNet: Guild Wars 2 a 'reaction' to sluggish MMO design
Do you believe that the MMO genre has been stuck in a rut over the past few years? So does Christopher Lye, the global brand director for ArenaNet, who publicly denounced the post-World of Warcraft trend in the industry as stagnant. In an interview with Gamasutra, Lye stated that Guild Wars 2 is walking the walk when it comes to genuinely challenging the status quo in the industry. "Honestly, I think the problem is that there's been a lack of change in MMO design and that Guild Wars 2 is a reaction to that," he said. "People will call this risky, but we think it's riskier just to churn out the same MMO that everyone has played before." Lye pointed to Guild Wars 2's scaling dynamic event system and its action combat as examples of how ArenaNet is forging its own path. Observing that player consumption of content is "virtually insatiable," Lye said that the team has developed tools to allow it to implement changes and additions to dynamic events in hours, not weeks. Is this industry stagnation coming to an end? Lye says yes: "We're finally seeing a point where companies realize that they're not going to create the next great MMO by just copying what's come before."
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.
38 Studios paying state back by not paying employees
If you're familiar with the phrase "robbing Peter to pay Paul," you'll understand the latest episode in the ongoing 38 Studios financial crisis. Except replace "Paul" with "the state of Rhode Island" and "Peter" with "the company's employees." Yes, in order to make the most recent payment to the state that sparked this whole crisis, the Rhode Island Economic Development Corporation has been informed that Curt Schilling's company is paying the state but not paying any of the company's employees. According to anonymous sources, all temporary employees and contractors have also been terminated. While this measure might help forestall immediate action, the company is still on the hook for a $75 million loan, and Rhode Island governor Lincoln Chafee has made it clear that the company is looking for more assistance from the state in order to remain viable. 38 Studios continues to make no public statements at this time. We'll no doubt have more on this story in the coming days as it continues to develop.
Facebook IPO is official: $38 per share, on sale tomorrow under ticker symbol 'FB'
We largely steer clear of companies going public here at Engadget, but Facebook and its zillions of users warrants an atypical tip of the hat. The outfit has announced that starting tomorrow, 421,233,615 shares of its common stock will be up for grabs at a price to the public of $38 per share. It'll trade on the NASDAQ under the symbol "FB," with the outfit offering 180,000,000 shares of Class A common stock and selling stockholders offering 241,233,615 shares of Class A common stock. Closing of the offering is expected to occur on May 22nd, subject to "customary closing conditions." And with that, we'd like to congratulate a plethora of new billionaires on... well, being billionaires. Don't work too hard, guys and girls. Celebratory video is after the break.
No relief in sight for 38 Studios after emergency meeting [Updated]
Generally, when your company defaults on a major loan, you might expect an emergency meeting about the loan and the company's future would produce some results. But apparently today's meeting between 38 Studios owner Curt Schilling and Rhode Island governor Lincoln Chafee resulted in... absolutely nothing. Specifically, Rhode Island's Economic Development Corporation will take no immediate action to prevent the studio from going under, with Chafee on record as asking, "How do we avoid throwing good money after bad?" It's a loaded question if you consider that the failure of 38 Studios would put the state's taxpayers on the hook for more than $112 million. Schilling has declined to elaborate on the company's state in interviews, and he has not made public how much more funding the company is seeking. It's bad news for the studio, bad news for the state, and bad news for any fans still looking forward to the possibility of Project Copernicus in the future. [Update: Joystiq reports that "it appears 38 Studios put up all present and future IP by the company as collateral," meaning that if the studio defaults, the state of Rhode Island will own all of its game assets. We've tucked some of the ensuing news coverage in the video behind the break.]
Google reportedly planning stable of Nexus devices with Android 5.0, will sell 'em direct
Hand firmly grasping hat? Good. The Wall Street Journal is reporting on quite the bombshell today, noting that Google is about to cause its carrier partners in the States all sorts of grief -- indirectly, of course. Just weeks after placing its heralded Galaxy Nexus on sale for $399 unlocked, the report states that said move is only the beginning of a new initiative. Likely to be formally revealed at Google I/O, the mega-corp is planning to partner with a variety of OEMs (rather than just one at a time) in order to have up to five Pure Google (read: Nexus) devices available at once. Better still, the whole stable will ship with Android 5.0 (Jelly Bean) and will be sold directly from Google in unlocked form to consumers in America, Europe and Asia. The move is significant in a myriad ways. For one, more unlocked Nexus devices means more choice when it comes to carrier selection. Furthermore, the move is likely to quell fears that certain partners may have about Google making Motorola Mobility its favorite after a $12 billion acquisition. Not surprisingly, Google's not commenting on the matter, but sources "close" to the situation say that the company's hoping to have the 5.0 cadre on sale by Thanksgiving -- you know, just in time for Black Friday and the looming holiday shopping season. We're all guessing that this will address the growing "app situation" head-on; by making a push to eliminate carrier-infused bloatware (while also providing early Android OS access to more partners), we're hoping that the whole "skinning" dilemma is addressed, too.
If 38 Studios goes under, Rhode Island taxpayers will be footing the bill [Updated]
Project Copernicus and Kingdoms of Amalur: Reckoning developer 38 Studios is in some hot water, but it looks like that may be the least of your worries if you're a Rhode Island resident. Rhode Island's WPRI reports that if the studio founders and can't pay back the bonds given to it by the state, then the onus of doing so will fall upon Rhode Island taxpayers. How much moolah are we talking about? Something to the tune of $112.6 million US. According to Joystiq, "If 38 Studios can't pay, the governor is required to ask the General Assembly to repay bondholders," which means that Rhode Island taxpayers will be responsible for footing the bill by 2020. For now, though, both the studio and the Rhode Island government are tight-lipped on the studio's future, and by association, the future of Project Copernicus, so we'll just have to wait and see how this plays out. [Update: Our sister site Joystiq reports that 38 Studios "missed its latest loan payment of $1.125 million to the state of Rhode Island on May 1, effectively defaulting [on] its $75 million loan." Rhode Island's Economic Development Corporation will hold an emergency meeting tomorrow morning to discuss the situation.]
Rumor: 38 Studios may be having financial trouble
38 Studios is one of many developers whose first big game (Kingdoms of Amalur: Reckoning) was rumored to lead into an MMO further on down the line. It looks like there may be storm clouds on the horizon before that project even gets moving, however, as the company may be facing financial issues. Rhode Island Governor Lincoln Chafee has apparently been meeting with owner Curt Schilling to work on "different issues," with Chafee noting that his administration has always tried to ensure that Rhode Island companies remain financially solvent. If you consider that Rhode Island invested about $75 million in the company, it's obvious that the government has an interest in making the company remain viable over the long term. Kingdoms of Amalur: Reckoning was a moderate hit, but that might not be enough for the company as it develops. We'll have more on this story as it develops, hopefully with better news.
LightSquared officially files for Chapter 11 bankruptcy
As expected, May 14th is indeed a dark day for LightSquared. The company has just filed paperwork in order to initiate Chapter 11 bankruptcy proceedings in Manhattan's US Bankruptcy Court, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone's baby looks weaker than ever. With the Sprint tie-up now void, and over $1.6 billion in debt, there's probably not too many places for LS to turn. The primary hurdle -- one it never could seem to overcome -- was the FCC's outright refusal to believe any of the company's mitigation proposals in relation to GPS interference issues. Despite "profoundly disagreeing" and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone's guess, but it won't be a quiet fall from grace, we're surmising.
