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Dungeons & debtors in the video game industry

What really slew Curt Schilling’s 38 Studios

“A LOT OF PEOPLE WERE LIKE ‘You have no idea what you’re getting into.’ I hope that after this people will think of me a little differently.” That’s what former Red Sox ace Curt Schilling told me back in January, just before his company, 38 Studios, was poised to release its first product, a swords and sorcery-themed video game called Kingdoms of Amalur: Reckoning. Unfortunately, after the spectacular implosion of 38 Studios over the last two months, those words have taken on new shades of meaning.

In May, 38 Studios defaulted on a $1.125 million loan payment, then laid off hundreds of employees. On June 7, it declared bankruptcy, owing nearly $151 million (not including the debts of the Maryland company it bought in 2009). Then came news of a federal investigation and lawsuit by a lender.

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