400 jobs at risk as 38 Studios fights for solvency

400 jobs at risk as 38 Studios fights for solvency
Craig Chapple

By Craig Chapple

May 15th 2012 at 10:02AM

'We are concerned and doing everything possible to ensure it stays part of the community', says Rhode Island Governor

Kingdoms of Alamur developer 38 Studios is struggling to keep to stay afloat amidst financial troubles at the studio, it has been revealed.

As reported by WPRI, the dire situation at the company emerged Monday night, with local Rhode Island government staff in meetings to try and ensure the studio's survival.

The potential closure of the studio means that 379 full-time developers are at risk of losing their jobs, with 288 currently working at the Rhode Island offices.

“We’re concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community,” said Rhode Island Governor Lincoln Chafee.

“We’re working on different issues with them.”

In 2010 the developer received a $75 million tax-payer backed loan from the RI Economic Development Corporation to get the studio to move its headquarters form Massachusetts, whilst pledging to employ up to 450 staff in the area.

There are now fears that the loan, of which 38 Studios has so far received $49.8 million, according to a disclosure notice form the company, may not be returned to taxpayers.

The funding has been invested in the studio’s upcoming fantasy MMO, Project Copernicus, originally slated for a September release.

Doubts have now been raised as to whether the game will now be released, with the spokesperson for the developer not immediately available for comment. 38 Studios has also pulled out of next month’s E3.

Last June, 38 Studios was described as a “going concern” with “substantial doubt” over whether the company could stay solvent after an audit by PricewaterhouseCoopers.