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38 Studios execs quit, employee health care coverage ends Thursday

XMNR: The controversy surrounding 38 Studios took another turn for the worse on Wednesday as two senior executives have apparently left the company and inside sources report that not only have employees not been paid but their health care coverage will run out on Thursday, May 24 as well.

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MultiConsoleGamer2065d ago

It really makes me sad to hear about hard working people losing their health care coverage. That stuff is expensive. I wish them all the best.

ATi_Elite2065d ago (Edited 2065d ago )

Curt Schilling has made millions from Baseball and that Jerk can't pay his employees?

Come on man!!

Glad i don't Live in Rhodes Island cause if 38 Studios goes Belly Up the tax payers will be forced to pay back the $75 million that 38 Studios got in Loans.

Always sticking it to the little guy. Banks, Government, and Wall Street are so corrupt.

chasegarcia2065d ago (Edited 2065d ago )

I live in Rhode Island. They did not get the full amount of loan money. It was a performance based loan. With lots of requirements to get the full amount.

-Still scks to lose money on a gamble. 38 studios spent the money ridiculously.

Ben_Grimm2065d ago

Used games was the cause!

AusRogo2065d ago

that sucks, poor blokes.. Thats really sad. I hope this stuff gets sorted out and they atleast get their pay.

showtimefolks2065d ago (Edited 2065d ago )

i am guessing their game didn't sell well enough otherwise EA would try to buy them?

why would you do a MMO when you new in business because it costs a lot to make a MMO?

very bad for business and very bad for 38 studios and sad at the same time, i hope a big publisher tries to help them keep their dreams alive

KOA was a very good game so i hope their things can get worked out

Soldierone2065d ago

Honestly.....reading this it says they used over 45 million dollars and had over 75 million dollars available.....

Do you have any idea how many indie developers would LOVE to have that money to make something worthwhile? I honestly think something should be looked into here. Rhode Island FINALLY does something to help boom video games, and this studio completely screws it up and makes it harder for any future studios to do anything.

Sure its an MMO. it takes time and money to make an MMO....how many MMO's have failed recently? anyone with common sense would say put out something else first to get a boost while you work on the MMO.

I feel bad for the employees, I really do. Not taking any credit from them, but the CEO's and and business people SUCK and shouldn't find a job elsewhere. Honestly just sounds like Curt Shilling was looking to make a quick buck, and milked it for what its worth.

aPerson2065d ago (Edited 2065d ago )

"...anyone with common sense would say put out something else first to get a boost while you work on the MMO."

That is what they intended to do with KoA: Reckoning. It sold 1.2 million copies worldwide, so I'm not sure why these guys are financially struggling.

http://forums.reckoning.ama...

Soldierone2065d ago

Which is why I said the business people in the upper management suck. They need to be investigated and see what the hell they were doing to crumble something like this....

I don't see why a new studio running off loans would want to dive into MMO's anyways....a majority of them fail, and a majority of them come from major studios.....

Queasy2065d ago

MMOs are expensive to produce and 38 Studios was required to meet certain employment levels as a condition of the $75 million loan. They were to hit 300 employees by October of this year and 450 by November of 2013. Pay and benefits for that number of skilled people is ridiculously expensive and that's not even counting the cost of building leases, technology purchases, licenses, etc.

According to some reports, 38 Studios had a monthly burn rate of $4 million before this all went down.

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