Final 38 Studios auction brings in $90,000 for Rhode Island

    
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My name is might have been.

If there was ever any hope of recovering most of the massive $75 million debt left by the collapse of 38 Studios, it’s gone now. A last auction of the defunct studio’s assets last week brought in around $90,000 after expenses, with the auctioned assets consisting largely of office supplies, equipment, and other odds and ends. All that remain are a handful of servers, which the state will be handling through private sales.

The previous auction, which included the company’s handful of game IPs, brought in around $830,000, meaning that the company’s assets didn’t even knock a single million off of the overall loan debt. 38 Studios was based in Rhode Island primarily because of a $75 million loan from the state; the company’s bankruptcy in 2012 left its assets to the taxpayers.

[Source: GamePolitics]
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Morreion
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Morreion

crawlkill Morreion 
As far as the ‘better investment advisors’ go, I’m firmly in the camp of indexing beating active managers- a minority of whom beat the financial indexes and those lucky few cannot be picked ahead of time with anything more than random chance over the years.  I’m sure I’m boring gamers terribly by now!  :)  Anyway, good discussion!

Suffice it to say that Rhode Island made a terrible investment.  Gamers could have told them that- we know how risky an MMO startup company is in this day and age.

crawlkill
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crawlkill

Morreion the idea was that if you have a sufficient fortune you can afford to hire better investment advisors, which will in turn constitute less of a percent of your total capital. the author discussed it especially in terms of OPAC companies, who (apparently) tend to have re-invested funds year over year.

Morreion
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Morreion

crawlkill Morreion 
Fair enough.  But a 10% ROI by government?  Those employees could make far more in the financial world…assuming there isn’t some kind of crony thing going on.  For instance- US congresspersons do extremely well with their investments- and not coincidentally, they are exempt from insider trading rules.

crawlkill
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crawlkill

Morreion the challenged content was to do with the way the author chose to calculate American middle incomes, purporting that he left out significant changes in the structure of renumeration since the middle of the 20th century, that he only counted retirement plans that actually got paid out, etc.

Morreion
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Morreion

crawlkill Morreion 
The book that has had lots of its content challenged as inaccurate?  I know it :)

crawlkill
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crawlkill

Morreion it’s funny, actually–according to that popular French economics book Capital in the 21st Century from a bit ago, governments that invest capital usually do extremely well for themselves, on the order of a 10% ROI. but they’re making those investments with a lot more care than “the governor thinks it’d be glamorous to help out his personal sportsball hero.”

Morreion
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Morreion

Governments should stay away from ‘picking corporate winners’ and subsidizing them with taxpayer money.  Period.  It always ends badly.

Lctwo
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Lctwo

I’ve been playing Kingdoms of Amalur and have been enjoying it. It has its flaws, but it’s still fun to me. #flameaway

schlag sweetleaf
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schlag sweetleaf

JohnnyB82 Zariarn

Mathew_Reuther
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Mathew_Reuther

You’re not familiar with the new Kickstarter policies, I take it? There’s now an expectation that if a project fails, the backers will be refunded. This is in response to all the “oh, wow, sorry, we tried” that was happening prior to the update.
As it stands now all games backed via Kickstarter are expected to do one of two things: 1) complete development and fulfill all backer rewards or 2) refund backers. As such there’s a much better legal basis to go after the developers who fail to do this, as they agreed to when they entered into the Kickstarter arrangement with the backers.