Senshudo

Rhode Island Bogged Down With 38 Studios Still

By David West on 29/04/2024 21:51 UTC

Rhode Island lawmakers just cannot seem to shake the stigma and all of the legal problems surrounding 38 Studios, the makers of Kingdoms of Amalur. 

First, the lobbying of 38 Studios to the Rhode Island legislature for the tax credits and loan guarantees is being investigated by the Rhode Island Secretary of State, to see if any illegal actions occurred during the process.

http://wpri.com/2014/05/06/ri-state-police-join-new-probe-of-38-studios-lobbying/

Next, some lawmakers, due to the money paid to do the lobbying effort by 38 Studios are in hot water for their potential improprieties. These folks are trying to get reelected, and their opponents are using this deal to attack them in order to try and win the seats.

http://wpri.com/2014/05/06/opponents-criticize-mollis-kilmartin-over-38-studios/

38 Studios defendants, in contrast, have asked for a judge to order the release of documents by the Rhode Island governor concerning the discussions about the loan guarantee, tax credits, and relocation of the studios from the Boston area to Rhode Island.

http://bostonherald.com/business/business_markets/2014/05/38_studios_defendants_want_records_from_governor

Finally, financial analysts have come out with a report saying not repaying those loan guarantees, like some lawmakers want, would actually cost a whole lot more to the state with increased interest fees as their bond rating would drop to 'C' aka 'Junk' status, meaning a massive increase on interests being paid on older bonds and any attempts to get new bonds. Considering most states issue temporary bonds for paychecks, which are immediately repaid, this could affect state workers as well.

http://www.miamiherald.com/2014/05/09/4107653/firm-38-studios-default-would.html

All in all, the entire 38 Studio fiasco remains a nightmare for all involved. It is too bad, because this author liked Kingdoms of Amalur, and was looking forward to Copernicus.