Curt Schilling's 38 Studios Lays Off Entire Staff
This is probably the death knell for 38 Studios, the video game company whose problems started with a missed loan payment at the beginning of the month. Since then the company has bounced a check to Rhode Island, failed to make payroll, and begged the state for more help in the form of tax credits. Today, one (former) worker told Kotaku that 38 Studios has laid off every last employee and shut down their offices.
Things were building to this. Those tax credits the company was counting on? They're only for companies incorporated in Rhode Island. 38 Studios is incorporated in Delaware, for tax purposes its pro-corporation laws. And today saw the resignation of the vice chairwoman of the RI Economic Development Corporation, the group that offered the sweetheart loan to lure 38 Studios to the state. The EDC's director stepped down last week.
Goodbye, 38 Studios. You made a pretty good video game. But once you're gone, Rhode Island taxpayers will still be paying for your missteps for a while.


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