Curt Schilling, former pitcher of the Red Sox, is in a major financial bind over his video game company, 38 Studios, named after his jersey number. The company’s employees, who presided in offices in Providence, Rhode Island and Timonium, Maryland, were all recently laid off.

The reason, according to reports, was Schilling’s failure to draw in investors, earn revenue from games or meet payroll demands. When the press inquired as to why Schilling wasn’t able to invest anymore considering his lucrative stint in baseball, according to Rhode Island Governor, Lincoln Chafee, he said he’s all in and tapped out.

“It’s an unfolding tragedy here in Rhode Island,” he added.

Rhode Island agreed to loan the company $75 million in 2010; however, red flags were raised after 38 Studios failed to make a $1.1 million payment after already receiving $49 million of the loan. 38 Studios applied for an additional $8.4 million in loans but was denied.

The Rhode Island Economic Development Corp met with Schilling to discuss his request for extra financing, but Schilling failed to sell them an effective business strategy, much like he failed to sell the promise of company growth to venture capitalists and outside investment groups.

The first game launched was called “Kingdoms of Amalur: Reckoning,” which Boston Business considers a flop. Schilling adamantly denied the game was anything but a success, as per the millions of dollars he poured into investments out of pocket. Schilling also believed the intellectual property accrued from game creations would be worth financial investments, but many people disagreed.

It seems that the video game industry is a tough one these days. In Tokyo this week, reports showed Nintendo shares dropped by 1.3 percent.