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Analyst: Moving 38 Studios’ IP assets could be a hard sell

May 23, 2012

Michael Pachter, the LA-based analyst who puts a potential $20 million price tag of the value of 38 Studios’ intellectual property, questions whether there would actually a buyer for the company’s assets if it goes bust.

“I don’t know that there are any buyers,” he says, due to the huge cost of completing 38 Studios’ massive multi-player online game, Project Copernicus. “It takes a lot of capital to complete one of these games and to support it and to build the server network and the call center support required for an MMO. And if the payoff is a million subscribers, I’m not sure there’s all that much appetite.”

Pachter notes that another massive multi-player online game that launched late last year, Electronic Arts’ Star Wars,  attracted a bit more than a million users. “It’s not really a guarantee of success,” he says, “if someone finishes the 38 Studios’ MMO.”

Difficulty in selling 38 Studios’ intellectual property is no small concern for Rhode Island taxpayers, since they face a potential tab of about $100 million if the company flops.

Pachter has kind words for the talent at 38 Studios and he gives high marks to the company’s first game, Kingdoms of Amalur: Reckoning. But he says the company’s fate depends on the depth of its financial problems.

Ted Nesi has more on the possible end-game, if 38 Studios doesn’t make it.

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