By PBN Staff
While this 38 Studios investment could turn out to be the deal of the decade, placing a large bet on a single video game company that has no revenue and no track record of success smacks of business naivety. The amount of money wee will invest means that the taxpayers of RI bear all the risk of this company developing, marketing and distributing successful games. Additional investors won't be needed for a while - they can sit back and wait until the company fails or succeeds before they choose to participate. We bear all the risk. .
Sheesh, I would love to see the State have a credible, documented strategy for high-tech economic development, and not simply place one high-profile, sports-name-branded, super high-risk investment as a cornerstone of our jobs program.
You gotta know that people in the video game industry are scratching thier heads on this one. I am, too.
With all the home-based and very small businesses that already exist in this state that could use a much smaller portion of the $75 million guarantee, why is it that we always have to go out of state to lure companies in that, with few exceptions, either do little for the local economy or fail and cost taxpayers millions?
How on earth do we pay for this if 38 studios fails? Let's pray that it's the success story of the century (thus far) and that legions of Rhode Islanders are back to work over the next couple of years as a result.
Excuse me if I don't place any bets in that column...my state government seems to have done so already...
WE DO NOT KNOW, AND CANNOT KNOW IF IT IS A "GOOD DEAL" UNTIL IT MATERIALIZES OR COLLAPSES. THE MENTALITY WAS ALL WRONG, LOW SELF-ESTEEM CHASING A MIRACLE PAYDAY, SORT OF LIKE PLAYING THE SLOTS OR SCRATCH TICKETS OR MEGABUCKS.