24 May

Rhode Island Governor Lincoln Chafee held an unexpected press conference on the state of 38 Studios earlier today, expressing a worsening state of affairs for the makers of Kingdoms of Amalur: Reckoning. Lacking any new outside investment, the studio is being denied all the tax credits it has applied for, likely due to company not being incorporated in Rhode Island (via WPRI). Another WPRI report reveals that both CEO Jen MacLean and Senior VP of Product Development John Blakely have updated their LinkedIn profiles with departure dates from the company, MacLean’s profile putting her time of departure back in March.

Worse still, the studio hasn’t paid its staff since May 1st, according to Joystiq. With the Amalur IP set up as 38 Studios’ collateral for their $75 million loan from the state, taxpayers could not only end up owning the rights to the fantasy brand, but be on the hook for $112.6 million should the studio close its doors. According to NBC10, when asked of the likelihood of closure, Governor Chafee responded that “…he’s doing everything he can to prevent that.”

(via Joystiq)