I thought that the whole flop wasn't the game but the guy overstretched his resources too fast. The game sold well enough. Yet without properly using his funds and resources, he pushed the next game they planned and had no way to make back the money they were wasting out. Generally Amalur was not the fault of the bakruptcy, it was the guy who kept pushing more game ideas before trying to make profit.
The game was not a flop, the last figures that i read said it sold around 1.5 million copies, which for an unknown RPG series like KoA was is fairly fantastic, the problem was that Curt Schilling for what ever reason ran the company in such a way that they needed to sell 3 million copies of KoA to be able to meet the first repayment of the $75 million loan Rhode island gave him - which was a fairly stupid thing to bet on (even though KoA is a fantastic game and i urge anyone who likes RPGs to buy it) overall it is a shame because they did apparently have some more DLC planned for KoA which i assume will never be finished now.
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