38 Studios Secures $75 Million Loan, Demiurge Speaks Out
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The guarantee passed on an 8-to-1 vote, with Karl Wadensten, president of Vibco, a manufacturer of industrial vibrators, the lone opposition vote. Three members of the board were absent.Apparently this decision hasn't sat well with Mass Effect: Pinnacle Station developers Demiurge Studios, though, as outlined by this blog post:
The arrangement is being made under a law passed in June that allows the state to guarantee up to $125 million in loans for high-tech and (knowledge-based) companies. The loan guarantee to 38 Studios would use 60 percent of that money allocated under the law.
38 Studios has promised to bring 450 jobs to the state by the end of 2012.
Dear Curt,I don't know... $75 million seems like a pretty good reason to relocate to me. Thanks, Blue's News.
I write to you today to address the announcement yesterday that you are moving your company away from Massachusetts to Rhode Island.
Although I understand that the enticement of loan guarantees are attractive, I ask you, on behalf of the Massachusetts game development community, to please reconsider all that you would leave behind if you go through with divorcing the Commonwealth. This state is a great place to live, work and play! As 38 Studios' own jobs page points out, the Boston area offers outstanding outdoor sports, world-class museums like the MFA and ICA, the best 4th of July celebration anywhere and, as you're well aware, Boston is the best sports town in the country. Our robust public transportation system makes it easy to get around and is a huge draw for potential recruits, whether it's the Commuter Rail out in Maynard or the subway that boasts stops near Demiurge Studios, Harmonix Music Systems and Irrational Games.
As 38 Studios' in-development MMO grows, you will soon realize that although the capital you have secured will fund your endeavors, the most vital and necessary component to completing your project is the vast pool of talent and resources you are leaving behind. The Commonwealth has a proven, readily available and ever-increasing video game development community. As the former Director-Greater Boston Region for the Massachusetts Office of Business Development under the Romney administration, I can assure you more industry professionals than ever call this great state home. A large number of game-focused graduates and brilliant thinkers come from our local colleges and universities, supplying the talent to meet our industry's growing demand. Our businesses are truly fortunate to grow in such a thriving community.
Curt, we love our home state of Massachusetts. In the end, if you really move your company down to Pawtucket, it will be a loss for the Boston game community. If anyone on the talented 38 Studios team wants to stay in Massachusetts, where we play major-league ball, they're more than welcome to join the team at Demiurge Studios, the state's soon-to-be largest independent game studio.
Sincerely,
William D. Reed
Chief Executive Officer
Demiurge Studios, Inc.
