38 Studios Lays Off Entire Staff

It seems that the woes of 38 Studios have increased, as news comes that the troubled company has now laid off its entire staff.  Not only has the Kingdoms of Amalur: Reckoning developer suffered, but so has its sister company, Big Huge Games, which has reportedly been shut down. Several company emails have been shared with media outlets, and illustrate the dire situation in which the employees now find themselves.  Not only have many not received a pay-cheque since 30th April, but their medical insurance looks set to run out, leaving them financially stuck, and also scrabbling to secure interim insurance cover.

What happens now is uncertain, however, two company execs have already stepped down, and it is looking increasingly unlikely that the full tax-payer backed loan, extended to the firm from the RI Economic Development Corporation, will be paid.

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One Comment

  1. Mark R MarkuzR says:

    That’s such a shame. A great shame. When I saw Amalur at last year’s E3 it took my breath away, and I hadn’t known even a single thing about it until that point. I left that booth thinking it would become a huge deal, that 38 and Big Huge would go on to be a force to be reckoned with… and a year later, it’s all gone. A YEAR… I mean… what the fuck!? I get that we’re in a recession and that everywhere is pretty much fucked to some extent, but surely there must have been something else causing the troubles? Was it a dodgy publishing deal where they didn’t get what they could have? Did they go a bit mental and end up buying too many MASSIVE yachts? Is it just that the devs get so little of whatever revenue is to be made from games that they weren’t able to sustain themselves on whatever they got through sales?

    It just doesn’t make sense to me. None at all. So sad.

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