Something went wrong. Try again later

Giant Bomb News

677 Comments

Report: 38 Studios Lays Off Entire Staff [UPDATED]

Both 38 Studios and Big Huge Games have been effectively dismantled.

No Caption Provided
No Caption Provided

UPDATE 3: According to Chafee, 38 Studios took a turn for the worse due to poor sales of Kingdoms of Amalur: Reckoning.

“The game failed," said Chafee.

38 Studios founder Curt Schilling announced on Twitter yesterday that Reckoning sold 1.2 million copies. Chafee said the game needed to sell closer to three million.

The state also just published a bunch of documents related to its loan.

--

UPDATE 2: A press conference with Rhode Island governor Lincoln Chafee is happening now.

“It’s not a good situation,” he said. “I’m not here to share good news. I wish things were different.”

Chafee said there were discussions between 38 Studios and the state about giving more taxpayer money to the developer, but the state declined.

“I would gladly extend the life of the company if I had confidence it would lead to profitably,” said Chafee. “We were not given that confidence.”

When the state was talking to 38 Studios, there was no mention of layoffs. In the press conference, the state has not acknowledged whether there have been mass layoffs, which appears to be the case.

The state is unaware whether 38 Studios will file for bankruptcy.

--

UPDATE: According to WPRI, here's the email that was sent to 38 Studios employees today:

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.

--

Both Polygon and Joystiq are reporting based on sources familiar with the situation that 38 Studios has laid off its entire staff. This includes both the main 38 Studios office, as well as all employees at Big Huge Games, which 38 Studios owned.

Rhode Island governor Lincoln Chafee had commented as recently as yesterday that all attempts were being made to rescue the studio from closure. He also stated that 38 had yet to find additional outside funding. Reports coming from inside the studio stated that employees had not been paid since May 1, and that all employee health benefits ran out as of today.

Details on this situation are still being investigated. We'll update this story as soon as we know more.

Alex Navarro on Google+

677 Comments

Avatar image for magicwuff
magicwuff

12

Forum Posts

3

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By magicwuff

As a Rhode Island resident; Fuck.

I am now stuck with paying off this loan through tax dollars.

Avatar image for juggaloacidman
JuggaloAcidman

427

Forum Posts

49

Wiki Points

0

Followers

Reviews: 6

User Lists: 4

Edited By JuggaloAcidman

There is no way KoA:R ever had a chance to sell 3 million copies! It's a great game... But the average gamer has never heard of it!

Avatar image for tentpole
TentPole

1856

Forum Posts

9

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By TentPole

@Jumanji: For the record 38 studios never blamed Reckoning. Curt said it did well and sold well. It was the Rhode Island Governor who claimed it failed. This doesn't have any real impact on what you are saying and doesn't change anything, but this is what it is.

Avatar image for skamando
skamando

40

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By skamando

Man, this is so sad. It was a chance to prove game development as a viable investment in general industry, but it just wasn't going to happen. I'm sorry for all those people losing their jobs now...

Avatar image for mewarmo990
mewarmo990

862

Forum Posts

1131

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By mewarmo990

What a goddamn mess, in more ways than one. Best wishes to the former staff of 38.

Avatar image for blacklagoon
BlackLagoon

2136

Forum Posts

106545

Wiki Points

0

Followers

Reviews: 0

User Lists: 4

Edited By BlackLagoon

@TentPole: The Governor never said Reckoning failed, selling well over a million it clearly didn't. Rather, he said it didn't sell enough to keep 38 going, which given the studio's massive debt meant it would have had to a been a 3+ million selling mega hit. This is why there's not a lot of faith in their MMO either, since it too would have to be exceptionally successful for it to be profitable, and in the current MMO marke that looks unlikely.

Avatar image for dagbiker
Dagbiker

7057

Forum Posts

1019

Wiki Points

0

Followers

Reviews: 0

User Lists: 16

Edited By Dagbiker

@MagicWuff said:

As a Rhode Island resident; Fuck.

I am now stuck with paying off this loan through tax dollars.

At least your the first state to own a video game IP.

Avatar image for tentpole
TentPole

1856

Forum Posts

9

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By TentPole
Avatar image for charlesda
CharlesDA

148

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By CharlesDA

Man, that sucks.

Avatar image for tober
Tober

186

Forum Posts

37

Wiki Points

0

Followers

Reviews: 0

User Lists: 6

Edited By Tober

The lack of co-op had me not buying it. Talented people losing their job sucks but i can't help but think that this would have sold so much more if it wasn't a pure singleplayer experience.

Avatar image for jayesslee
Jayesslee

115

Forum Posts

175

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Jayesslee

Noooooo Rich Gallup! :(

Avatar image for blacklagoon
BlackLagoon

2136

Forum Posts

106545

Wiki Points

0

Followers

Reviews: 0

User Lists: 4

Edited By BlackLagoon

@TentPole said:

@BlackLagoon said:

@TentPole: The Governor never said Reckoning failed

I am going to say you are full of shit:

"The game failed, the game failed," Rhode Island Governor Lincoln Chafee told attendees of a press conference

Sorry, I guess I deserved that. Should probably have been in bed instead of posting. Still, I think the sentiment of my post is valid. The Governor was talking about how many copies 38 Studios needed Reckoning to sell. Schilling was just saying that they beat EA's sales estimate, which says nothing about how profitable the game was for 38.

Avatar image for bourbon_warrior
Bourbon_Warrior

4569

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By Bourbon_Warrior

Well you should of made a better game.

Avatar image for sdcoiner76
sdcoiner76

22

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By sdcoiner76

Wow, tragic on many levels.

Avatar image for rockman29
rockman29

13

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By rockman29

Well the world just had to make sure we are never getting a sequel to Rise of Nations.

Avatar image for feikken
Feikken

226

Forum Posts

3

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By Feikken

Satan

Avatar image for asantosbr
asantosbr

215

Forum Posts

4

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By asantosbr

So one day they said the game outperformed the estimations by selling 1.2 M, the next day they say the game failed because it had to sell 3 M. Reckoning was a good game, I enjoyed it a lot. Sad to see they putting the blame of a whole management disaster on a single game, that is not bad to begin with.

Avatar image for nutts
nutts

12

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By nutts

Does anyone know how this will effect the DLC that is currently available? Will it stay available? If I buy it now, does the money still go to 38 Studios, or will it go to the state of RI? I assume if they declare bankruptcy then the State of RI will get the IP and any future sales of the game and DLC? But since everyone is now laid off I guess all sales are now going straight to pay off the government loan anyway. If that is the case, I don't know if I really want the DLC. I like supporting developers, but I don't really want to support the RI government.

Avatar image for adamswid
adamswid

6

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By adamswid

I feel bad for the employees, but it's no surprise the game tanked. it's only redeeming feature was amazing combat, but with no challenging enemies, sub par loot, and absolutely god awful story it was doomed. It should have been an MMO.

Avatar image for yeahimjordan
yeahimjordan

223

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By yeahimjordan

@Nutts: regardless if you bought the dlc now or later, the money will end up in the tax payers pocket, and rightfully so. Im all for supporting developers, but this ship has sailed quite some time ago

Avatar image for somesmart
somesmart

12

Forum Posts

1

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By somesmart

Absolutely crazy stuff. Hopefully the whole truth comes out eventually.

Avatar image for hellknightleon
HellknightLeon

489

Forum Posts

184

Wiki Points

0

Followers

Reviews: 10

User Lists: 2

Edited By HellknightLeon

Damn shame.

Avatar image for lunalicrichard
lunalicrichard

194

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 10

Edited By lunalicrichard

Oh man , that must really hurt to get a mail like that . Not even a personal note . Not a thank you for your work and time . Nothing ..... No mention of the fact that you even exist for the management .

And i loved the demo . but then i don't play much rpg and don't know what's the standard in the genre apart from Skyrim . witch i haven't played yet .

Avatar image for crabs
Crabs

2

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Crabs

after seeing shilling talk on fox news i knew he was an idiot... i assumed amalur was going to be a huge failure but after seeing its sales i thought maybe my dumb a-hole detector was broken. Turns out its just as sharp as ever.

Just another conservative preaching against handouts while raking them in hand over fist, and placing the blame on the state thats bankrolling him for not giving him enough subsidies. I have a feeling the ineptitude of shilling himself probably had a huge hand in all this, hopefully as more information gets out... we will get to see just how horribly mismanaged the company was.

Avatar image for dan_citi
Dan_CiTi

5601

Forum Posts

308

Wiki Points

0

Followers

Reviews: 0

User Lists: 2

Edited By Dan_CiTi

This is very sad, even straight up depressing following this whole thing now after all this time. I hope everyone who lost their job can find one sooner than later, honestly being in the family of someone who works on a game, especially one that is not totally kick ass and sells well must really tough. They were clearly dedicated people working on such an ambitious project, even if I do not care for MMORPGs virtually whatsoever I can appreciate the work that goes into one and especially in the state the genre is now. Good luck

Avatar image for mehojevich
mehojevich

26

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 1

Edited By mehojevich

we want rich back here. where he belongs