So the studio responsible for Kingdoms of Amalur has been shut down and, according 38 Studio’s founder Curt Schilling, comments made by Rhode Island’s governor may have been responsible for the company’s boning. The State of Rhode Island, which is where the company was located after a deal was made to relocate the company there from Massachusetts, apparently backed out on a deal to approve film tax credits and refused to allow the company to put off a $1.12 million payment that would have allowed the studio to pay its staff.
Schilling has also said that Governor Chafee’s comments that the State was attempting to keep the company’s head above water cost 38 Studios a publisher that was interesting in picking up a sequel to Kingdoms of Amalur. The unnamed publisher apparently pulled out of a $35 million deal for the sequel due to the governor’s comments.
Governor Chafee has denied that his comments hurt the company and also disputes that the State backed out on the deal to approve tax credits for the company. This might be a case of ‘he said, he said’ but we’re pretty sure which side gamers will take on this one. Hopefully a publisher will still pick up the Kingdoms of Amalur IP (and most of the now out-of-work staff) in the near future.
Source : GamesIndustry.biz