Some of us have experienced the joys of waiting for a bus. The longer you wait, the less likely it seems that one will actually show up. Then two will appear at the same time, both seemingly running to a schedule of their own choosing.
Former Red Sox pitcher Curt Schilling’s 38 Studios are, at the moment, doing exactly the same thing.
For months, the silence from Schilling’s team has been deafening. One week after their forthcoming appearance at Comic-Con in San Diego, Calif., “Project Mercury” — the code name of 38 Studios’ first release — has trickled into the public consciousness. But the news that the studio is mulling over a proposed $75 million relocation to Providence, R.I. has brought the Company firmly into the spotlight.
Under the terms of the deal, which appears to have been pitched by 38 Studios to the Rhode Island Economic Development Corporation (RIEDC), the gaming studio would be enticed to leave Massachusetts by means of a loan guarantee from RIEDC. This is a legally binding agreement under which the guarantor agrees to pay any or all of the amount due on a loan instrument in the event of nonpayment by the borrower.
I shall simplify this.
Schilling’s 38 Studios (the borrower) would receive $75 million from the RIEDC (the guarantor) to move from Maynard, Mass., to Providence, R.I.
And the loan instrument? RIEDC would raise this by selling $75 million worth of bonds to other investors, in this case led by Wells Fargo Securities who would then lend the money to 38 Studios who (in time) would pay back the loan.
…Providing, of course, that 38 Studios were in a position to pay back the investment.
If they were unable to pay back the money, the state of Rhode Island would assume responsibility for the debt.
And what does Rhode Island get for becoming the new home of Project Mercury? According to sources in the Boston media, Schilling has promised to bring 400 jobs to the area by the end of 2012.
That seems to be it.
Four-hundred new jobs; not even a guarantee that the members of the RIEDC would be the first to get a copy of the long-awaited RPG. Not even the indication that Schilling would try to persuade some of his chums to come down and join the Rhode Island party.
Am I alone in thinking that this is not a great move for all parties concerned? Why are gaming companies being forced to look elsewhere for financial incentives that will allow them to realize their visions? If film companies are being inticed to come to Massachusetts because of tax credits, why is the gaming industry being overlooked? Does the taxpayer in Rhode Island really want the money spent on bringing in out-of-state talent?
According to the Massachusetts Technology Leadership Council, the video-game industry is worth $2 billion in annual revenue to the state. There are the obvious big cheeses (discussed at length in previous articles) and a significant number of smaller developers who make up the core of a very vibrant independent gaming community. An editorial in Mass High Tech on July 7th, pointed out that the industry relies on the dovetailing of people and products saying that “it’s more like a bunch of Legos – two employees here, 10 there, 300 down the road – many little pieces fitting together to make a shape.”
Schilling himself has written on his personal blog about how important Massachusetts is to the development of gaming. Shortly after he appeared at the Business in Gaming event at MIT, he wrote, “We were founded here, in Massachusetts, and it’s where we would love to stay, and grow.” This piece, which appeared on 38 Pitches on March 29th, went on to say “38 Studios (originally Green Monster Games) was founded in Maynard, Massachusetts. To be honest when the company was founded there was intense push back that doing this here, in Massachusetts, would in and of itself cause failure. People WON’T move from San Diego, Seattle, Austin, to Boston, no way.”
Not only have the businesses continued to develop but the pool of university talent that Boston is (quite rightly) famed for has spilled into the video-gaming industry. Northeastern University and BU both have degree courseworks that concentrate on gaming, Worcester Polytechnic has a four-year Interactive Media and Game Development program, and there are ever more opportunities for those in love with gaming to be able to consider a career in the industry.
Recent investment in the community by global corporations such as Warner Brothers and Universal Music have raised the bar (and possibly expectations) for developers in Boston but this courting of 38 Studios by another state shows that the work being done here in Beantown is hugely significant.
The Boston media have been quick to point out that it was actually Schilling who seems to be the driving force behind the move. On Friday, The Boston Globe ran a quote from Keith Stokes (RIEDC’s executive director), who said,”38 Studios pursued Rhode Island. They came to Rhode Island because they had an interest in our capital city. They came to Rhode Island because of our growing technology base industries.’’
If that is the case, then what does that say about Massachusetts? Has the time come for Boston to start thinking seriously about growing our own brand? When a company like 38 Studios — who have already signed a deal with Electronic Arts to publish Project Mercury — are actively “pursuing” investment but feel that the Bay State is not the place to be, then will other members of the gaming community begin to look elsewhere for the financial incentives that seem to be lacking from the government here?
Schilling has kept us in the dark for so long, that this sudden burst into the light has managed to reveal some uncomfortable truths. Notwithstanding the inticements being offered to filmmakers to be creative in Massachusetts, the time has surely come to extend this largesse to other “creative industries.”
After so much hard work has gone into creating a gaming industry to be proud of in Massachusetts, it would be a shame to let a lack of investment be the reason for an exodus. The as yet unproven 38 Studios may only be thinking of themselves by exploring other avenues, but they may be the catalyst for those in authority to consider the bigger picture.
The last thing we want is our field of dreams being turned into a nightmare of inactivity.
What do you think about 38 Studios and their potential departure to Rhode Island? Any thoughts on their upcoming release? Let us now in the comments section below.
