The Bitter Irony Of 38 Studios Summed Up In A Photo

When we look back on 2012, the humiliating rapid collapse of 38 Studios will almost certainly top any list of the year’s biggest gaming related news. Sure, the feds ultimately opted not to purse any criminal charges against company management, but the picture revealed by the investigation, and by statements from people involved in the company, is one of mismanagement, magical thinking, and a mentality not dissimilar to a gambling addict hoping that the next big score will be the one to put him over the top, financially speaking.

That saga is now finally coming to its ignoble conclusion as the State of Rhode Island auctions off 38 Studios assets for a pittance of the 75 million debt that led to the company’s collapse. We should have a conversation about the wisdom of Rhode Island giving away potentially exploitable IP for what amounts to a song, but for now, let’s enjoy one final piercing look into the blistering irony that was a company founded by a man who decried the influence of government on business while, at the same time, accepting millions of dollars in government funding.

Joystiq’s Alexander Sliwinski was able to attend the most recent auction, and for 5 dollars he nabbed himself a souvenir that perfectly sums up the mess that the company made for itself. I’ll let him speak for himself:

I bought one item at yesterday’s 38 Studios auction for $5. An award given to executives for the $75 million loan.

And scene.

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2 Comments on The Bitter Irony Of 38 Studios Summed Up In A Photo

R.J.

On October 24, 2012 at 4:20 pm

Ha. I would think if they were going to have trophies made, it would be more appropriate to make them for when they paid off the loan. Getting a big business loan usually means your work is just starting.

quicktooth

On October 24, 2012 at 11:21 pm

In hindsight, the award for a large loan should have rang BIG ALARM BELLS. I believe I have no words to describe that whole situation- but that’s why I come to Gamefront :D . The place that tells it like it is, to the point of letting the news speak for itself when it clearly can. This is journalism as it was meant to be :D