Note: iOS 9 + Facebook users w/ trouble scrolling: #super sorry# we hope to fix it asap. In the meantime Chrome Mobile is a reach around
hot  /  reviews  /  videos  /  cblogs  /  qposts

Kingdoms of Amalur: Reckoning

Entire staff at 38 Studios and Big Huge Games laid off

5:40 PM on 05.24.2012 // Hamza CTZ Aziz

It's a very sad day in the gaming industry, as 38 Studios has laid off its entire workforce -- including Baltimore-based studio Big Huge Games -- due to the financial turmoil the company has been in. That's 379 people suddenly without a job. Employees were notified of the layoffs with this cold internal memo obtained by WPRI:

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.

The issue first started when 38 Studios missed its loan payment of $1.125 million owed to the Rhode Island government earlier this month. That's just the tip of the iceberg: a studio closure would result in Rhode Island taxpayers owing up to $122.6 million between 2013 and 2020, including interest, on a loan of $75 million, as reported by Joystiq.

Rhode Island Governor Lincoln Chafee held a press conference earlier today in which he said experts told him that Kingdoms of Amalur: Reckoning, 38 Studios' first game, needed to sell "in the 3 million range" in order to break even. According to studio founder Curt Schilling, Reckoning sold 1.2 million copies in its first three months of release. To Chafee and Rhode Island, that means "the game failed."

Governor Chafee's office had been in contact with Schilling yesterday, and others at 38 as recently as today, yet had no idea that the studio had laid off its entire staff shortly before the press conference. He heard the news during the press conference when journalists raised questions about the layoffs. 38 itself has still released no official comment; it is unclear if the company is planning to declare bankruptcy. If it does go under, ownership of all of 38 Studios' IP would transfer to Rhode Island's taxpayers.

This story is developing, and we'll update as we learn more of the situation. A grassroots effort has formed on Twitter in an attempt to help former employees of 38 Studios find new work at a variety of game companies with open positions, via the #38jobs hashtag. We wish them the best of luck in finding jobs.

38 Studios lays off its entire staff [WPRI]

 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our community fisters, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding * to your whitelists.

destructoid's previous coverage:
Kingdoms of Amalur: Reckoning

View all:powered by:  MM.Elephant

Ads on destructoid may be purchased from:

Please contact Crave Online, thanks!

To editorialize or not to editorialize: An editorial

Tiny Dangerous Dungeons REVIEW - The Pocket Metroidvania

Cblogs of 11/24/15 + Big Ass Fort

Primal Carnage: Extinction Review (PS4)

Belated Spoiler-Free SOMA Review

Friday Night Fights: The Blackest Of Fridays

Super Destructoid Community Interviews Hyper Encore ##Reload

So I Got a 3DS

Negotiations are over. Rainbow Six Siege is a no buy from me as of now.

Cheat Codes Podcast - Ep. 72: Sexy Dog

 Add your impressions

Status updates from C-bloggers

StriderHoang avatarStriderHoang
What? Wonderful 101 on eShop is $19? NO EXCUSES.
Terry 309 avatarTerry 309
Pixie The Fairy avatarPixie The Fairy
Robin secretly controls the boobs of Nintendo characters. She stole the Xenoblade boobs and took the Fatal Frame lingerie for herself. #DammitRobin [img][/img]
Matheus Railane avatarMatheus Railane
ikiryou avatarikiryou
I was just playing Skyrim and wondered if anyone has come up with Fallout 3/New Vegas weapon mods for Skyrim? Fighting dragons with assault weapons sounds almost necessary. [img][/img]
James Internet Ego avatarJames Internet Ego
Just bought Fallout: New Vegas. Throw me the best mods there are that AREN'T Total Conversion mods. So now Who Vegas - yet.
Parismio avatarParismio
Oh this Undertale summaration flipnote is so good:
Amna Umen avatarAmna Umen
For an early Christmas present I got my girlfriend Wooly World to go with our new Wii U. I've gotten more joy out of how adorable all the character designs are than I'd like to admit.
Jiraya avatarJiraya
Hey Dtoiders ! Steam just destroyed my wallet ! Share here what you bought in this sale !
GoofierBrute avatarGoofierBrute
And so I purchased not just Hyper Dimension Neptunia, but also its sequel and Grim Fandango Remastered in the Steam Sale, and it isn't even the end of the first day. God damnit. At least refunds are thing a now.
Samsneeze avatarSamsneeze
I'm currently writing a review for a mobile game, but only because I'm enjoying the hell out it. I'm honestly enjoying it far more than Puzzles and Dragons.
Zer0t0nin avatarZer0t0nin
Damn, I think I'm Bruce Willis from Unbreakable. Just fell of a 12-foot ladder and all I got was a little scratch on my finger.
CoilWhine avatarCoilWhine
After I finish Fallout 4 I'm thinking of 100%ing Skyrim and then installing a TON of dinosaur mods on it.
voex avatarvoex
4 hours into Hotline Miami 2 and I'm finding it just as fun as the original. So far it's a good balance between frustration and satisfaction. Still have no idea what the story is about.
OverlordZetta avatarOverlordZetta
1. Start playing Ocarina of Time again. 2. Start having fun. 3. Discover fishing area. 4. Stop having fun.
AvtrSpirit avatarAvtrSpirit
A 2-d hovercraft platforming exploration game just came out today. Have fun collecting the coins! My record so far is 140.
Occams avatarOccams
Holy shit the new David Bowie video/song is just lovely.
Barry Kelly avatarBarry Kelly
So many people angry at Play-Asia right now. Totally not exactly the kind of backlash Tecmo were trying to avoid by not releasing the game here in the first place.
FlanxLycanth avatarFlanxLycanth
If you're a UK kid there's a Wii U 32 GB Wind Waker Premium Pack on Amazon for £240. It says sale... I dunno how much of a saving that is. You tell me.
Archelon avatarArchelon
Community Question: Not strictly speaking video game-related, but screw it. Team Captain America or Team Iron Man?
more quickposts



Invert site colors

  Dark Theme
  Light Theme

Destructoid means family.
Living the dream, since 2006

Pssst. konami code + enter

modernmethod logo

Back to Top

We follow moms on   Facebook  and   Twitter
  Light Theme      Dark Theme
Pssst. Konami Code + Enter!
You may remix stuff our site under creative commons w/@
- Destructoid means family. Living the dream, since 2006 -