NEW: Sony Boss Blames Gov Chafee for 38 Studios Failure
Tuesday, February 11, 2014
Smedley said Schilling approached him numerous times regarding "Kingdoms of Amalur: Project Copernicus," which was to be the first game produced by 38 Studios in Rhode Island. (Kingdoms of Amalur: Reckoning," was created prior to the move to Rhode Island. Praised by the gaming press, it received a Metacritic.com score of 81 out of 100). Smedley unleashed on Chafee and defended Schilling via a series of Tweets on Monday.
Smedley said Schilling approached SOE for funding prior to the now infamous Rhode Island loan. He liked Schilling's idea, as evidenced by a recent series of tweets, but the money was a problem for SOE.
"The quality was undeniable. It was gorgeous. It had smart people working on it. It was just too expensive is all," Smedley said. "The economics were too tough to make work for us. This is a business where risks are large. We had enough balls in the air. More risk was too much for us."
"Dear people of Rhode Island. Look to your elected government for failing to protect you. That 38 studios deal just never should have been. Public funds shouldn't be backing risky things like online games."
He respects Schilling for investing his now money in the company, but said "If that idiot Governor Chafee hadn't trash talked right at the time Curt was trying to get funding you would be playing the game now."
"The idea of suing someone when Chaffe's (sic) own comments were what poisoned the well at the end is beyond the pale. All he had to do was give Curt another week and we wouldn't be here today."
Related Slideshow: 10 Historically Bold Moves Made By Big Companies
10. RJ Reynolds
The Smokeless Cigarette
In 1988, long after the American public wised up to the dangers of cigarettes, RJ Reynolds launched the Premier cigarette. They called it a “smokeless nicotine delivery mechanism that looks and feels like a premium cigarette.” It didn't. Smokers said it tasted like charcoal, and drug users quickly figured out how to use it to smoke crack. It has been reported that RJ Reynolds lost $1 billion on the product.
The alleged lobster roll – no one's sure there was ever any real lobster in there – from McDonald's was about as successful in New England as their McCrabcake was in Maryland. It looked bad, tasted worse, and was shunned by even the most die hard Golden Arches fans. (Unlike the McRib, which continues to have a bewildering trance on McDonald's fans.) The sandwich is still available in some Canadian franchises and occasionally in Maine.
Bans Employees From Working at Home
When Yahoo CEO Marissa Mayer became the company’s chief executive, she instated Google-like food options, offered new benefits, and insisted full-time employees work in the office. The tech world was shocked, and Mayer admitted the mandate could diminish productivity. However, she saw an up side.
Sony was right to support Blu-ray over the failed HD DVD, probably because they learned their lesson with the Betamax experience in 1975. That's the year the Betamax video recorder hit stores shelves. A year later, the VHS format hit the market. Sony never licensed its Betamax technology, and the two formats were not compatible. Consumers had to choose between the two. You know how that story ended.
Enters the Auto Market with High End Electric
Fires Steve Jobs
One of the world's most famous college drop outs, Steve Jobs founded Apple, helped it grow into a billion-plus public company, and launched the Macintosh. He was also ousted by Apple's Board of Directors in 1985. The popular take is that the board was stupid to fire Jobs as the leader of the Mac division, because Apple would have more quickly become the company it is today. A new take on the decision posits that the then-30-year old Jobs was disruptive and incompetent in that role. After 12 years away from the company he founded, he learned the skills and discipline required for Apple's rebirth.
Takes on Sony + Nintendo in the Console Gaming Market
Microsoft has one person to thank for its console gaming success, and that person isn't even real. Master Chief is the hero of the insanely popular "Halo" franchise, which was first released was a launch title with the original Xbox. The game revolutionized First Person Shooters on consoles, and sold millions of consoles along the way. At the time, Microsoft was known as primarily a software company. They may have took a bath on those early consoles, but they now join Sony as one of the two major console makers left standing. (Sorry, Nintendo. The Wii U is going to sink you.)
Changes Pricing Plan
Netflix is back on top now, but it almost went under in 2011 when it mishandled its pricing changes and attempted to slice off it DVD business under the name Qwikster. As they did with the New Coke launch, customers responded with immediate anger, leading Netflix CEO Reed Hastings to apologize. The company reverted to its $7.99 streaming plan and has never looked back.
Opts out of Government Loans
After Detroit’s automakers went to Washington in 2008 asking for emergency loans to keep their enterprises afloat, the big bus oval was the only one to opt out of the bailout. Ford decided to mortgage all of its assets to raise operating funds instead. Taxpayers eventually spent $80 billion to rescue General Motors Corp. and Chrysler Corp. Ford focused on efficiency and increasing sales without using government bailout money - thus avoiding the federal tinkering that Chrysler and GM had to accept as a part of their deals. The company has since kept pace with GM, the country's largest automaker.
Perhaps the most famous brand misstep since Ford's Edsel, New Coke is the Titanic of corporate miscalculation. In the 1970s and early 80s, the soft drink giant faced increased competition from Pepsi and other products. To stay on top, Coke executives stopped production of the classic formula and introduced New Coke with tremendous fanfare. The public's responded with immediate outrage. Coca-Cola re-launched its original formula – called Coc-Cola Classic – almost immediately. Today, unopened cans of New Coke go for hundreds on eBay.
- 38 Studios Tried to Keep Public in the Dark, E-Mails Say
- GoLocal’s Coverage of 38 Studios is Featured on CBS Radio - Listen
- NEW: Is Curt Schilling’s 38 Studios Going Broke?
- BREAKING: State of RI Sues Curt Schilling and Others Over 38 Studios
- RI Sues Key Players from Schilling’s 38 Studios—See Complaint
- Bonds Sold for 38 Studios Deal
- INVESTIGATION: Secret Documents Reveal True Risks of 38 Studios
- Connected Lawyer Pledged Tax Credits Before 38 Studios Was Approved
- Insiders Had Hands All Over Schilling’s 38 Studios Deal
- 38 Studios Bankruptcy: Executives Say Tax Credits Could Have Saved Company
- Curt Schilling’s 38 Studios Disaster - A Timeline
- Leominster’s R.A. Salvatore Stiffed for $1.7 Million Schilling’s 38 Studios’ Bankruptcy
- 38 Studios Connected Lawyer’s Million Dollar Movie Projects
- E-Mails Reveal 38 Studios’ Desperate Attempts to Secure Tax Credits
- NEW: 38 Studios Assets to Be Sold at Two Auctions
- 38 Studios Insider Gets $650k in New Film Tax Credits
- EXCLUSIVE: U.S. Attorney Investigating Curt Schilling’s 38 Studios
- NEW: 38 Studios Auction Brings in $650k
- 38 Studios Relocates Ahead of Schedule
- EXCLUSIVE: Schilling Responds to 38 Studios Law Suit
- NEW: Few RI Lawmakers Voted Against Deal that Paved Way for 38 Studios