Curt Schilling's Video Game Studio Won't Face Federal Charges

Illustration for article titled Curt Schillings Video Game Studio Wont Face Federal Charges

In the aftermath of 38 Studios' collapse, a slew of government investigators said they were probing the maker of Kingdoms of Amalur: Reckoning for its attempts to secure loans using tax credits that never were issued. Tax credits are the biggest reason the studio, founded by former Boston Red Sox pitcher Curt Schilling, became such a scandal in its home state of Rhode Island when everything went bust.

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A spokesman for the U.S. Attorney in Rhode Island told the Associated Press on Friday they were through with the investigation. A state investigation still is proceeding. 38 Studios begun work in Providence, R.I. in 2010, lured by a $75 million loan guarantee from the state. Investigators were looking into statements 38 Studios may have made to potential creditors for any bank fraud. The feds didn't find any.

In addition to the state's own criminal investigation, Rhode Island's economic commission is investigating whether anyone can be held financially liable. The state's looking at about a $100 million loss on the venture with 38 Studios. If they're looking at Schilling himself, they may not get far. The former all-star pitcher is out about $50 million of his own money.

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Rhode Island owns all of the company's assets and is putting them up for auction next month to try to recoup some of the dough.

No federal charges on Schilling's 38 Studios

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DISCUSSION

roninsakana
Demosthenes

If anything, I hope this disaster brings light to the horrible and unsustainable business practices of this imploding industry. Every company I've worked for wastes so much time, money and effort as the cronies and their overlords at the top of the heap seem more interested in perpetuating their lifestyle than making a viable product.

Seriously, the sheer amount of egos and career sabotage of others in order to climb the corporate ladder astounds me. All that poor planning, re-re-re-designs and last minute changes resulting massive volumes of code, design and asset loss literally costs millions of dollars for what equates to absolutely nothing.

I can't speak for 38 Studios (beyond the hearsay from many of the employees' former coworkers) but I am willing to bet there were people in decisions making positions that had no business being there while being surrounded by a protective ring of cronies that were paid more than their experience would normally allow (via artificially elevated titles).

38 Studios' story is very common. The only reason it got so much attention is because state money was involved. Other than that, I know of studios that have been working on a game for 7 years and have almost nothing to show for all that time, money and effort. Those rockstar lifestyles of the higher-ups and their cronies have to be financially supported by someone, right?