Things took a downward turn for the Kingdoms of Amalur studio this month when they failed to make a big repayment to the state of Rhode Island . They soon managed to foot the bill, but missed payroll and lost their CEO shortly after. Now Gamasutra report that everyone at 38 Studios and Big Huge Games has been laid off with this email.
"The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.
These layoffs are non-voluntary and non-disciplinary.
This is your official notice of lay off, effective today, Thursday, May 24th, 2012."
Rhode Island Governor Lincoln Chafee said later in a press conference that 38 Studios collapsed because Kingdoms of Amalur "failed," stating that the studio needed to sell 3 million copies to break even. Chafee and a number of state officials grilled studio founder Curt Schilling on the state of his company at the start of the month when they failed to make a payment of $1.125 million to the state of Rhode Island. The state approved a loan program worth $75 million for 38 Studios back in 2010.
Schilling countered suggestions that Amalur failed on Project Copernicus , which was slated for June next year.
A group of state lawmakers ed a resolution yesterday demanding that the Rhode Island Economic Development Corporation and Governer Chafee "immediately release all records related to 38 Studios' financial situation and its $75 million loan guarantee” as questions arise as to how such a large state loan was offered to an unproven studio.
As the political fallout rumbles on, hundreds of former 38 Studios developers search for work. A recent layoffs at Bioware Austin . Best of luck to all those affected.
