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
  @CTZ

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 *.disqus.com 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!


Journey to Become a Jedi Knight - Jedi Outcast

Waifu Wars - The End

Hindsight Part II: Unreleased Games of the Past

Robbing Kirby of his Greatest Asset

The meaning of The Witness (Part 3 of 3)

Friday Night Fights: War Never Changes Edition

Digimon Story: Cyber Sleuth Review (Vita)

Waifu Wars: Loyalty-Tier

The Wii U's fate is not (entirely) Nintendo's fault

Musings on Firewatch (Spoilers)

 Add your impressions

 Quickposts
Status updates from C-bloggers

Robo Panda Z avatarRobo Panda Z
Just a quick update, that you all should go Greenlight Hustle Cat, the magical cat dating simulator that is being released soon. Work in a cat cafe, date magical cats, be whatever gender you want - there is no downside! Also I'm alive, That's importa
Rad Party God avatarRad Party God
What a damned good song. I'm very excited about Mick Gordon composing for DOOM =D
nilesh410451 avatarnilesh410451
Play our latest hot android game 36 24 36 on google play and windowsphone google play :-https://play.google.com/store/apps/details?id=com.aaryavarta.thirtysix&hl=en windowsphon8:-https://www.microsoft.com/en-us/store/games/game362436/9nblggh5k0dn
trippytip avatartrippytip
War not waifu lovers~ Must there only be one waifu? Why not have all the waifu? I enjoy my waifu like Lou Bega here.
Jinx 01 avatarJinx 01
So is the plural of waifu "waifus" or just "waifu"? I want to make sure I have it right when referring to my harem.
Sr Churros avatarSr Churros
*Someday last week* Oh, so Toby Fox also made music for Homestuck. I guess I should read it *Today* Fuck it is 3:30 AM I have to wake up early tomorrow why I'm still reading this it is already chapter five someone help me please
Nekrosys avatarNekrosys
Holy shit, App Store. The copyright infringement is real. I didn't buy it, because I'm scared it'll make my iPhone explode and because the comments say the game's a generic zombie title with fake and misleading screenshots.
Torchman avatarTorchman
Pretty much in a nutshell
Gamemaniac3434 avatarGamemaniac3434
Image of Myxococcus colony rising up after being submerged. I love bacteria so damn much you guys.
Nick R P Green avatarNick R P Green
Made a quick REACTion video to some of today's news storys. Hope nobody REACTs to it with a lawsuit.
Dreamweaver avatarDreamweaver
Playing Halo 5: Guardians, got REALLY invested in this one match. It was intense from beginning to end and I was using A LOT of Power Weapons because it was so fun. We were literally seconds away from victory when the internet cut off. So disappointed. :(
Amna Umen avatarAmna Umen
Streaming Civ V with a few of my friends. Twitch.tv/amnaumen
Retrofraction avatarRetrofraction
I must be in a weird mood, want to buy SMS games :3
KingSigy avatarKingSigy
How the fuck does Link tie his scarf? I really want to wear mine that way.
LinkSlayer64 avatarLinkSlayer64
As I recently mentioned I picked up Madworld, I also have acquired Pikmin, Red Steel and DJ Hero2 for Wii. For DS Feel the Magic XY/XX, N+ (shitty port I might add) Sonic Chronicles: The Dark Brotherhood, and Some Suda51 I already misplaced :/
ooktar avatarooktar
Bought Firewatch this morning, played about 2 hours and started to get really invested into the story until I hit a bug that won't allow me to progress. :(
The Dyslexic Laywer avatarThe Dyslexic Laywer
Fuck it. Fuck Blighttown. Fuck it's poison blow dart campers. Fuck the mosquito freaks. Fuck the fire-breathing bitches. Fuck the lack of visibility. Fuck it's pitfalls. Fuck the fact that I'm going back after 5 minutes of self-loathing.
KnickKnackMyWack avatarKnickKnackMyWack
You know what the weirdest part about having selective hemophobia is? Getting freaked out by an anime like Elfen Lied but being 100% fine with shit like this.
StriderHoang avatarStriderHoang
Nobody told me the boxed version of Revelations 2 lagged to shit. I was lucky to exchange it for Xbox money.
Nathan D avatarNathan D
Objectively the best part of Heat.
more quickposts


Contest!


Seriously

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 -