Kingdoms of Amalur dev struggling to stay in business

US government "concerned" it will lose $75m loan.

Kingdoms of Amalur developer 38 Studios is in talks with local US government officials as it struggles to stay in business.

38 Studios previously recieved a $75 million (46.6 million) loan from Rhode Island officials to tempt the company away from neighbouring state Massachusetts.

"We're concerned and just doing everything possible to ensure that 38 Studios stays part of the Rhode Island community," Lincoln Chaffee, Governor of Rhode Island told the Providence Journal (via GamesIndustry).

Chaffee said he was now working to "protect" the $75 million loan, but admitted there was a "tight time-frame" to "keep 38 Studios solvent".

"It's always been a volatile industry to be in. That's just the risk you take when you get into the business", he added.

38 Studios is currently working on MMO Copernicus, set in the same world as Kingdoms of Amalur. It employed over 400 full-time staff as of March this year and was still hiring for new workers.

Publisher EA has remained quiet on how much Kingdoms of Amalur sold globally, but we do know that it shifted 410,000 retail copies in the US. 38 Studios recently pulled out of this year's E3.

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