38 Studios in Financial Trouble, Reckoning Sold 410k Copies at Retail

I was under the impression that Kingdoms of Amalur: Reckoning did pretty well at retail, but according to this report on NBC 10 in Rhode Island, state officials have recently been meeting with 38 Studios in order to find a way to keep the company from defaulting on the $75 million loan they were given. Part of the problem is that Reckoning has only sold 410,000 copies at retail across all three platforms since February, though I’m sure the number is far higher if you consider digital sales:

“We’re always working to keep Rhode Island companies solvent, and that’s what we’re doing with 38 Studios,” Chafee said.
Providence-based 38 Studios was founded in Massachusetts but lured to Rhode Island in 2010 after state officials offered it a $75-million loan guarantee. The state said its backing would help the company bring hundreds of jobs and millions of dollars of tax revenue to the state.
“We’re working with 38 Studios on different issues. That’s all I can report right now,” the governor said.
Calls placed to 38 Studios on Monday were not returned.
Keith Stokes, executive director of the Rhode Island Economic Development Corp., had no comment.
In February, the company released the single-player role-playing game “Kingdoms of Amalur: Reckoning.”
According to the NPD Group, 410,000 copies have been sold since its release. The figures represent sales in the U.S. across Xbox 360, Playstation 3 and PC versions of the title.
Stokes was criticized during last year’s governor’s race for advocating the loan guarantee to bring the company to Providence.

I really, really hope they get it worked out and keep chugging along. Maybe a switch from expensive MMO development to another single player title would be the best decision?

UPDATE: A follow-up report on WPRI claims that 38 Studios missed a $1.125 million payment on May 1st, which is what started this whole mess:

38 Studios defaulted on May 1 when it failed to make a required $1.125 million payment to the R.I. Economic Development Corporation, causing alarm at the State House about the company’s finances, House Speaker Gordon Fox confirmed Tuesday.
“They’re trying to work through that,” Fox told reporters at the State House. 38 Studios is seeking bridge financing to get it through an apparent cash-flow shortfall but has not asked the state to provide funding, he said. The company has also explored using state tax credits to shore up its finances.
The EDC board has scheduled an emergency meeting for 8:30 a.m. Wednesday to discuss “an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios, LCC financing,” and parts of the meeting may be closed, according to a notice filed with the secretary of state’s office.

Not good.