 5:40 PM on 05.24.2012 |
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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]
Curt Schilling has requested a judge throw out the lawsuit against his now-defunct development house. Following the dissolution of 38 Studios, the Rhode Island Economic Development Corporation accused Schilling and his busine... Former MLB pitcher Curt Schilling is selling his personal effects to pay off the debts of 38 Studios. Last year, the company released Kingdoms of Amalur: Reckoning only to file for bankruptcy and shutter months later. Am... This year was great in general for videogames. Beyond the predictable success of games like Halo 4 and Call of Duty: Black Ops II, there were a ton of hits that came out of nowhere, including not just big publisher titles, bu... Earlier this summer news broke that the Rhode Island U.S. Attorney and FBI would be launching a criminal investigation into the finances of defunct Kingdoms of Amalur: Reckoning developer 38 Studios. On Friday, a spokesman fo...
Hey guys! Today's Destructoid Show was very exciting, because Tara's mom was here.
Today we talk about G4 trying to become GQ, XCOM: Enemy Unknown's PC pre-purchase perks, Capcom's ten minutes of Remember Me, Rayman Jungle Run, Trials Evolution coming to PC, and most importantly: Fart Cat. Also, Tara's a backup dancer in Zumba Fitness Core, so go buy that right now. The demise of 38 Studios has been a well chronicled one, but perhaps you're interested in knowing exactly how much money the now defunct developer used prior to shuttering earlier this year. According to WPRI, that figure exc... The death knell has sounded for 38 Studios. Following the layoff of its entire 379-person staff two weeks ago after missing a $1.125 million loan payment to Rhode Island, the developer of Kingdoms of Amalur: Reckoning and the... After effectively gambling with this month's rent money in a bid to pay for next's, things were looking pretty bleak a for Curt Schilling's 38 Studios. Running into financial difficulty following the release of Kingdoms of Am... Hey guys, if you missed today's LIVE LIVE LIVE Destructoid Show, here it is. Tara's out -- I honestly have no idea where she went -- but Anthony Carboni was good enough to fill in.
The big news today: Indie Game The Movi... 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 suddenl... |
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