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Originally posted by drel Nah! the RI mafia will bail them out in return for a large part of the ownership of the company.
I know it's just a joke, but on a serious note, is it even possible for a 3rd party to come in when the loan is secured through state issued bonds.
How would that work exactly?
That comment sounds like McFarlane wasn't too confident in KoA from the get go.......
Originally posted by Theocritus That comment sounds like McFarlane wasn't too confident in KoA from the get go.......
Game only sold 330k copies and the company is having financial troubles.
He has a point. The mmo is being pitches as the mmo based on that game, how exactly do you pitch it then if the game doesn't sell well? Which it didn't really.
It's not like he wasn't privy to what was being developed.
Originally posted by niceguy3978 Originally posted by Uhwop Originally posted by Deron_Barak Originally posted by GrayGhost79 Originally posted by Deron_Barak The best part about this whole issue, which is really nothing considering people's livelihoods are at stake, is the lack of information between multiple news outlets and the reactions of people from said half information. Fret not, "Copernicus" will see the light of day one way or another.
I'll have to admit, I'm having a hard time getting the full story regardless of where I go. Each news outlet seems to be giving out just enough information to seem different from the other news outlets while at the same time being just as attention grabbing.
This is probably the best source for the whole picture.
A few notes:
Not sure were you got the second bullet point from.
The magority of all money that the REIDC aquires comes from the RI general assembly, only a small portion of it is got from private investors. Besides that, any loan only becomes the responsibility of the person issuing it when it's not repaid.
It's like saying the bank is only on the books for my loan if I default. The taxpayers are in the same situation here, only if the loan defaults will they be on the books for it.
Also, it's public information that if the loan defaults, the taxpayers are responsible for the initial loan plus interest, 112 milliion. If the money was secured through private investment, the taxpayers wouldn't be on the book for it. Even if, and this is what I'm assuming, the REIDC aquired the money from priviate investors and backed that money by a loan that the general assembly co-signed, it would still boil down to using taxpayer money to finance a business. In other words, it sounds to me like the gov. of RI took private investment money and backed it with a taxpayer loan so that the private investors would hold no liability.
In other words. He set up a venture that would make private indivuduals money regardless if the venture failed or not. How effed up is that? If 38 studios doesn't fold and repays the loan with interest, the investors get paid, if they do fold then the taxpayers have to repay the loan and the investors still get paid.
This seems like it should be the headlining story to me, not 38 studios themself. Win win situatins aren't investments, it's a savings account!
Anyone else curious who the private investors are? Or how linked to the governor they may be?
Glad to know that it was in fact funded by RI rather than the way it is in the post you were responding to. Because if that were the case and RI didn't actually loan the money and instead investors did, but RI would be on the hook for the bill if the company failed. That would be even more rediculous. It would be privatising the profits, but socializing the loss.
"The math works a little something this this: The Rhode Island Economic Development Corporation borrowed $75 million from private investors for 38 Studios, at interest rates between 6 - 7.75 percent, with the expectation that 38 Studios would pay it back with the sale of games."
RI was supposed to, and has already to an extent, been benefitting from the employees of Studio 38 in the form of taxes and good bought by the employees in the state. People are making Schilling out to be this snake oil salesman who pulled a fast one on RI. This is not the case.
Edit: I was wrong on the aquiring of BHG. It was done by Studio 38 before the 75M, er 50M, was giving to them.
Just not worth my time anymore.
Originally posted by Uhwop Originally posted by Theocritus That comment sounds like McFarlane wasn't too confident in KoA from the get go.......
Really? Not that great though lol
Originally posted by Deron_Barak Originally posted by niceguy3978 Originally posted by Uhwop Originally posted by Deron_Barak Originally posted by GrayGhost79 Originally posted by Deron_Barak The best part about this whole issue, which is really nothing considering people's livelihoods are at stake, is the lack of information between multiple news outlets and the reactions of people from said half information. Fret not, "Copernicus" will see the light of day one way or another.
Schilling was also required to hire 450 people from R.I. as part of the loan agreement. As of March, the company had 379 employees. As of today, the company has announced mass layoffs.
First off, Schilling is an idiot for even agreeing to the 450 jobs clause. Schilling was too busy seing dollar signs however.
Being a decent baseball player doesn't automatically make you even an adequate business man.
Both Schilling and the former governor who approved the loan are 'snake oil salesmen". Neither of them could reasonably provide on the promises they made.
-Letting Derek Smart work on your game is like letting Osama bin Laden work in the White House. Something will burn.--And on the 8th day, man created God.-
Originally posted by Deron_Barak I'm not defending anything and yes there were supposed to be more employees in RI but "mass layoffs"? Can you link that info?
Originally posted by Wickedjelly They didn't do a good job marketing KOA all. Regardless the quality of the game their marketing for it was awful.
EA didn't do much marketing. Which was their job as publisher. But they were marketing the heck out of SWTOR and ME3. So they let KoA pretty much rot with minimal support.
Originally posted by MosesZD Originally posted by Wickedjelly They didn't do a good job marketing KOA all. Regardless the quality of the game their marketing for it was awful.
This is why I don't understand people choosing to use a publisher that is also a rival development house.
Conflict of interest.
If the dev house part of the publisher (EA) has games important to their bottom line out at the same time as your game that they're only publishing, which do you think they're going to focus on?
It sounds as thoughf rom this description that the RI is subsidizing all of the risk. They act as a middle man and say, if they succeed then you make money, if they fail, then we take the loss. Sigh.
Originally posted by Deron_Barak @Eyeswideopen Yes I heard there were layoffs but you said "mass layoffs". The link you provided even said the amount was unspecified. We don't even know if they were Studio 38 employees or outside contractors which would fall under the term "Unspecified cuts to it's workforce". Hows about we wait until the head of Studio 38 speaks about it.
They gave a fraudulant check because they had no money.
They had to make good on fraudulant check so they paid it by not paying the employees.
Now what do you suppose the easiest way to keep from owing even more weeks of pay, to the employees you can't even afford to pay for the last weeks worth of work in the first place, is? I mean, do you think they just fired a couple janitors and Schillings personal gopher? Come on man.
Looks like the CEO and VP of Product Development are no longer with the company.
Originally posted by Deron_Barak Yes I read all that news already. Jokes aside you nor I know what is going on specifically but yes, I'm sure they did lay some people off. I was mearly noting that your comment of "mass layoffs" was sensationalizing your argument and didn't really have any foundation.
Then you may want to look at this.
I'm sure you've seen the figure of 379 employees at 38 studios as of March 2012 http://www.gamasutra.com/view/news/170551/38_Studios_pays_Rhode_Island_state_but_not_its_workforce.php. Well, now the current number is 251. And a bunch of them were at a job fair held by Turbine.
Now let's do the math: 379 in March, 251 now. That's -128 people. I consider that a "mass layoff".
300 people at Turbine job fair for 50 jobs.
No specific number given for how many applicants were 38 Studios employees, but Turbine states they held the job fair in R.I. specifically because of 38 Studios employees being in need.
Originally posted by Uhwop the gov forced a deadline of june 2013 for the release of the MMO. No way it's done by then, and even if they had something they could release, you know it's not going to be ready enough to succeed. One way or the other, it's a doomed company. The gov. is making sure of that.
i havent followed the latest news this week
but McFarlane stated 2 months ago -- that the mmo would be releasing this year
Kickstarter: Stuff I'm supporting
Originally posted by Deron_Barak What I don't get is if Copernicus is supposed to release in one year why is Studio 38 not getting the rest of the money they are already paying on? They've only received 50M... 25M would more than pay the bills until the release, not lay anyone off and have more than enough left over for advertising. Either Mr. Chafee knows nothing about business, which would be scary considering he's the governor, or he cares more about grandstanding than the money he's grandstanding for. He has to know that all of his public statements are damaging to the product he claims he's trying to save for the people of RI. It just doesn't make sense.
It's over, no game will be comming next year. R.I. Decided to disolve the company last night and the assets including Copernicus are up for sale .
Quite often these loans are paid out in chunks over time on a pre-arranged schedule. Then the payments are added in also on a schedule. It's sort of a protection thing for the loaner, they can see if there's a problem before handing out all the money, if the borrower can't make a payment along the way. That's what happened here. Only in this case, the state didn't make the loan, they guarranteed it while arranging the loans through private entities. Same difference, since the state is on the hook for the money.
Once upon a time....
Well , it's GAME OVER, FOX25 news just reported they llaid-off their entire staff...
hopefully all those people can find work soon.
its official - bankruptcy declared
related news stories
Glad I went ahead and picked up the 2 content DLCs for Reckoning.
Have 49 of 50 acheivements from my initial playthru, but am sure the DLC added more. Didnt want to be stuck with a case of the DLC being pulled ala Marvel Ultimate Alliance.
Reckoning was a poor mans Oblivion, but I enjoyed it.
Asking Devs to make AAA sandbox titles is like trying to get fine dining on a McDonalds dollar menu budget.