After all of the hard times 38 Studios has been going through with financial issues and the closing of the company, the public auction of the studio’s assets began yesterday.Not all of the company’s assets went on auction yesterday at former 38 Studios’ headquarters in Rhode Island. According to Joystiq we are expected to get the final sales numbers later today.
A public agency called the Rhode Island Economic Development Committee loaned 38 studios upwards of $75 million at the onset of this situation.
The Rhode Island Economic Development Committee has said that there were over 1000 registered bidders in the auction, 600 online and 400 in person. Participants attending the event
in person had to drop down a refundable deposit of $100 just to enter the building. We have reports that over 95% of the items up for sale were sold.

Without getting into to much of the financial details the Rhode Island Economic Development Corporation borrowed $75 million from a number of private investors to back 38 Studios, with interest rates between 6 – 7.75%, expectations were that 38 Studios would pay it back with the sale of games. According to Joystiq, WPRI reports that if 38 Studios is unable to pay back the bonds it received from the Rhode Island Economic Development Corporation, believe it or not, taxpayers will actually end up having to pay back $112.6 million through 2020. Another interesting point here is that this situation could have a much broader effect on the industry as a whole, where now it may be difficult for developers to get state-specific tax breaks.
Yesterdays auction started at 11:30am and went all the way until 10pm and now we are hearing that there is a possibility of another live auction to move the rest of the items. The left over items are said to include “more computers, servers, office furniture, etc.”
Lastly, what will be happening with the Kingdoms of Amalur IP?
Rhode Island is hoping to make the most return from the sale of the original IP for which it will be shopping a deal over the coming months.
“I anticipate that the IP will be marketed and sold over the next three to six months,” the court-appointed attorney who organized the auction, Richard Land, told Joystiq. “Although the process is not yet set in stone, it is unlikely that it will be a traditional auction as you saw yesterday; more likely to be a negotiated transaction.”
Craig Hunter – who has written 1177 posts on The Jace Hall Show.
Craig Hunter is a main contributor for the Jace Hall Show and has been an avid gamer for over 15 years. He also freelances for a number of websites and magazines covering mobile products and emerging technologies.

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