10 Ill-Fated Choices That Wrecked Video Games Instantly

The Boston based 38 Studios was founded by Curt Schilling with relatively humble beginnings. While he originally wanted to make an MMO named Project Copernicus, the studio eventually settled on the well received if poor-selling Kingdoms of Amalur: Reckoning, a fantasy RPG published by EA. What followed was a wild saga of mismanagement, beginning with 38's relocation to Rhode Island in April 2011.

To fund development and also provide jobs to the US state, Schilling asked for a $75 million loan guarantee from the Rhode Island government. With the cash in hand, the studio went on a hiring spree. They even bought out fellow developer Big Huge Games and costs quickly began to stack up, particularly with its MMO ambitions being so expensive. 38 Studios began to run out of money close to Kingdoms of Amalur's release in February 2012. When sales failed to catch on, falling well short of the three million break-even mark, things got ugly. Developers went unpaid and concerns mounted.

When the final result had been tallied, 38 Studios owed $150 million in debt and closed its doors in June 2012, cancelling the MMO they were working on in the process. The foolish borrowing didn't just wreck the livelihoods of studio staff at 38, it also bled over into the Rhode Island government. Millions went down the drain and Curt Schilling was sued by the state, repaying $61 million. 38 Studios remains one of the most prominent gaming failures in recent memory.