http://www.bostonmagazine.com/articles/2012/07/38-studios-end-game/print/
A very interesting read, here are some interesting bits
"Asked about 38 Studios’ failure, Schilling says his management team suffered from “significant dysfunction” and that his video-game developers worked too slowly. Those problems, he allows, are his fault. “As the chairman and founder,” he says, “who’s above me?”"
"Many former 38 Studios employees, including the CEO, responded to that Facebook post with fierce attacks against Schilling himself. As the assaults mounted, Schilling’s wife, Shonda, rose to her husband’s defense. “50 million its [sic] not a fucking joke. It’s gone,” she wrote, adding that, “You have no idea what that last two weeks were like. Hope and hell. We hung on every telephone call. My husband couldn’t function. My kids saw their father cry more in that month then [sic] any child should see.”"
"By 2006, Curt Schilling had earned more than $90 million playing baseball, not including endorsements. But what he really aspired to was being “Bill Gates rich.” He admired the global impact the Microsoft founder had made through his philanthropy, and wanted to do the same. Schilling, who has an autistic son, imagined providing $200 million to open the Shonda Schilling Center for Autism Research."
"Schilling knew he’d been treated well during his baseball career, and wanted his staff at 38 Studios to feel the same. That meant gold-plated healthcare, for which employees had no paycheck deductions, and top-notch 401(k )s, with the company matching to the legal limit. As 38 Studios grew from 20 employees in 2006 to 42 in 2007 to 65 in 2008, there were plenty of other goodies along the way: free gym memberships, two homes the company rented to temporarily house new out-of-state hires (though that perk was short-lived), and, one year at Christmas, new laptop computers for every employee. Gifts like the computers came out of Schilling’s pocket — he says he spent as much as $2.5 million on that sort of largesse over the years."
"The CEO also tried to rein in Schilling’s spending, doing away with ideas for company cars and cell phones. But Schilling was adamant about the rest of the perks. According to the case study, between fiscal years 2007 and 2008, the company spent more than $705,000 on “travel and entertainment,” a sum Scherlis, the former Turbine CEO, calls “wildly high.”"
"So as the company moved south in April 2011, it embarked on a hiring binge. In its midst, Schilling seemed to be handing out important titles to anybody who asked nicely for one. “It became a joke,” one employee says. “Oh, you are a VP of lunch? Oh yeah, I’m a VP of doughnuts.” Infighting inevitably resulted, with execs often giving conflicting directives to staffers. “They didn’t work well together,” Schilling says of his bloated management team. “I was amazed at the turf-building and protecting that went on.”"
"Deadlines were frequently missed, something for which staffers say Schilling rarely held anyone accountable. The ex-pitcher had a bigger concern. “The game wasn’t fun,” he says, unprompted, beside the softball field. “It was my biggest gripe for probably the past eight to 12 months.” Visually, Copernicus was stunning, but the actual things you could do in the game weren’t engaging enough. The combat aspects especially lagged. Schilling — who never wavered in his belief that the game would be great — says the MMO was improving, but after six years, it still wasn’t there. When Schilling walked around during lunch hour, he says, nobody was playing Copernicus’s internal demos. They were all on some other game."
"On May 24, the entire 38 Studios staff was laid off via e-mail. They hadn’t been paid since the end of the previous month, but their problems were just beginning. In short order, their healthcare disappeared and their 401(k ) s were frozen. Then, MoveTrek Mobility — a company 38 Studios hired during the relocation to Providence to buy and resell employees’ Massachusetts homes — notified seven people that, because it had not yet sold their houses, they were potentially responsible for their old mortgages. And Atlas Van Lines alerted some individuals that they were on the hook for bills that management hadn’t paid."
Plenty more interesting stuff in the article
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