38 Studios, notably known for developing EA's Kingdoms of Amalur: Recknong earlier this year might be in trouble. The latest report from the Providence Journal and WPRI state that the studio is struggling to remain afloat, with state governor Lincoln Chafee meeting with 38 studios officials to discuss the company's current financial standing.
If you're wondering why a state governor is meeting with a development studio it's because 38 Studios received a $75 million taxpayer-backed loan in 2010 as an incentive to move its headquarters from Massachusetts to Rhode Island.
Details of the meetings have been kept private for the time being and all Chafee could say was that they were working under a "tight time-frame" to "keep 38 Studios solvent."
38 Studios was founded by former baseball player Curt Schilling and has released the warmly-received Kingdoms of Amalur: Reckoning for the PC, Xbox 360 and PS3. Electronic Arts, the game's publisher has publicly pegged the game's physical sales to be over 400,000 units (US only).
We'll update the situation as more news develops.
Source: Game Informer
