law

38 Studios tells court it missed sales goal

BLOOMBERG FILE PHOTO/TONY AVELAR
EXECUTIVES OF 38 Studios LLC told U.S. Bankruptcy Court in Delaware that its its first product, the video game “Kingdoms of Amalur: Reckoning,” did not meet its sales expectations.
Posted 7/10/12

WILMINGTON, Del. – In a reversal of public statements made in the wake of the revelations of its financial difficulties, executives of 38 Studios LLC told U.S. Bankruptcy Court in Delaware that its first product, the video game “Kingdoms of Amalur: Reckoning,” did not meet its sales expectations after being released earlier this year, according to WPRI-TV.

Former President and Chief Operating Officer William Thomas and former Chief Financial Officer Richard Wester told bankruptcy court-appointed trustee Jeoffrey Burtch that thanks to having to re-pay a $28.7 million advance from Electronic Arts against the sales of “Reckoning,” the company had not generated any cash from the 1.3 million copies sold.

The executives also maintained that the public criticism leveled at the company by Gov. Lincoln D. Chafee scared off a number of investors who could have helped the company stay afloat.

According to WPRI, 38 Studios listed more than 1,000 creditors, with more than $150 million in liabilities.

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