Report: 38 Studios Lays Off Entire Staff [UPDATED]

@Jeust: When you take a stupid amount of time to develop a game, you need to sell a lot to make up for it. Sadly, it looks like some poor management caused a lot of people to lose their jobs today. Very sad.

Needed to sell close to three million copies? That would be very difficult even if the game was much better than it was.

My thoughts go out to all the dudes working at 38. I'm sure you guys will land on your feet!

RICH GALLUP COME BACK TO THE LOVING ARMS OF JEFF AND CREW

Fucking...this went all the way wrong so fast. I suppose it was years in the making. I feel awful for these guys.

I've been laid off before and that letter is very similar to the one I received. That's just the way it is. It sucks. I hope all those talented devs will find work elsewhere in the industry. It's really a shame that most of their work will go almost completely unseen.

Holy fucking shit... That's uh, horrendous to say the least. If it really did come down to the sales of KOA then I think the industry as a whole needs to take a look at how sustainable it is to gamble like 38 did. I love AAA blockbuster games as much as the next guy but when the repercussions are as bad as this for not selling another 1.5 million copies, I think there's something is seriously wrong.

At least Rich and Rorie might possibly be able to come back to Giant Bomb, Gspot crew 2.0?

Man, my heart goes out to all those affected, especially Rich.

That was fast

Fuck.

All Curt Schilling wanted was to make a MMO! Where did it all go so wrong? Oh, right, it was a company founded by a baseball player who wanted to make a MMO.

That's just a terrible thing to read. Especially that Reckoning was, you know, really rather cool.

So it looks like we can look forward to a special guest appearance by Rich Gallup on the next Bombcast.

@danielcampbell said:

@Jeust: When you take a stupid amount of time to develop a game, you need to sell a lot to make up for it. Sadly, it looks like some poor management caused a lot of people to lose their jobs today. Very sad.

Yeah, still selling three million is a bold assessment.

I wonder how many shillings Kurt has now.

Curt Schilling should have just stuck to baseball and been a commentator.

@Tommy said:

Why release a video (a first and only video) about your game when you know you are going lay off the entire staff in one or two days?

They threw a bone to the fans, especially to the ones on the 38 boards. Can you imagine following a game for years and not ever seeing a screenshot or video of it?

On a positive note, this means Rich Gallup is free to work on GiantBomb?.... if only!

Wow, that e-mail.. that's cold.

@fusrodah said:

I hadn't realized Big Huge was part of 38 Studios...Rise of Nations was one of my favorite games ever. I feel really guilty for not buying Amalur now.

Why would you feel guilty? They produced a product that you didn't deem worthy of purchase and you didn't buy it. If anything it's even worse for the company that could've made another RoN game. But why do that, because no one liked that game, right?

So nice of them to throw Big Huge under the bus, like it's all their fault.

Dayum son.
 
But...Reckoning seemed bland as paper, and the PC demo was horrible.

This seems to be the nail in the coffin for the current development model for MMOs. Working away for 5-7 years with no return, and running on investor capital, is a near impossible proposition for any company, which is why only Blizzard/Activision and EA have been really that successful with them, they have the cash to keep development going.

This sucks, hope everyone from 38 and Big Huge land on their feet.

@SmokePants: Just because he's a baseball player doesn't mean he would have bad ideas and concepts for a game, playing sports doesn't mean you're not creative.

That's rather sad. Would have been nice to see Curt be successful. Though, to do so also do need to put out a product that would last. Would of been nice to see what they were *really* working on however, especially considering all the hype and build up that had happened over the years.

RICH NOOOOOOOO!!!!!

Three million copies just to break even? That puts Amalur into the $60-80 million budget range, and that title was nowhere advertised enough for a AAA budget.

Shoulda been a baseball MMO

My sympathies to everyone at 38 Studios.

Also, times have changed and people have moved on. Rich was good at what he did back at Gamespot, but he decided he wanted to do something different, and I wouldn't be surprised if that continues to be the case. Whatever it is, he'll figure something out.

A million sales is not a failure under any reasonable set of circumstances. They were counting on it to set the world on fire, which was not a fair set of expectations.

Amalur was suppose to sell 3 million copies? Who the fuck made those projections? Those are Established Faboy Franchise numbers.

It seems like this entire business was based on fumes and hope. Hey I'm going to go open a car manufacturing business to compete with GM tomorrow, who needs to start small...

Terrible news, and I appreciate it Alex that the article was void any sarcastic quips.

Again, condolences to all those, and i really hope they are able to find something else.

@Gizmo said:

@Tommy said:

Why release a video (a first and only video) about your game when you know you are going lay off the entire staff in one or two days?

They threw a bone to the fans, especially to the ones on the 38 boards. Can you imagine following a game for years and not ever seeing a screenshot or video of it?

If you're trying to drum up interest for selling the IP, or perhaps getting other other capital infusions, having a strong reaction from fans on a video like that would sure help.

Pouring one out over here. It's very sad to see a new developer go out of business so quick, especially since I found Reckoning to be pretty decent. Good luck to those searching for jobs in this climate. In Gallup, we trust.

What a mess...

@Foggen said:

A million sales is not a failure under any reasonable set of circumstances. They were counting on it to set the world on fire, which was not a fair set of expectations.

For an XBLA title, maybe. But a million units is probably around $30-$35 million in revenue to 38 after EA took its cut. Development clearly cost more than that, not to mention the other administrative fees for back office support. Who knows what kind of cut guys like Salvatore took as well. That 3 million unit number probably would have netted around 10-15% profit.

These things ain't cheap to make. Yeah, a million sure seems like a good number, but with costs the way they are for console games, it ain't enough.

Now you know why digital games and iOS apps are getting so popular, yeah?

Following this news has been devastating. I can't even imagine what it's like over there. My heart goes out to all my friends at 38 and BHG...

They expected to sell 3 million??? Really? wtf

Damn shame to see a new developer go under so quickly. I have enjoyed Reckoning so far and I hope that those fired can find work soon.

Time for Rich to come back home!

Man, I hope Rhode Island thinks it's worth not giving them extra cash, they're going to have to pay out anyway with unemployment insurance.

this is terrible news, but i guess i'm in the same line of thinking with others on why did they spend so many resources on an MMO when they should have started getting the brand awareness out with smaller games first and foremost. Reckoning was a good idea but seems like they released that game a little too late to stop the bleeding in time.

@Jace said:

@fusrodah said:

I hadn't realized Big Huge was part of 38 Studios...Rise of Nations was one of my favorite games ever. I feel really guilty for not buying Amalur now.

Why would you feel guilty? They produced a product that you didn't deem worthy of purchase and you didn't buy it. If anything it's even worse for the company that could've made another RoN game. But why do that, because no one liked that game, right?

Damn, I bought Rise of Nations Gold around 3 or 4 years ago. I have yet to open the wrapping for it, all the praise for it in the comments really makes me want to dig up that copy.

That was quick.

It was stupid to have spent that much making amalur. Stupidity all around.

:(

Is there a Rich Gallup thread yet? There's gotta be, right?

That's really sad news whatever the company!

I love what I've played so far of Reckoning and can't believe the sales were so poor.

I hope all the good work gets recognised and people get new jobs soon. Maybe a couple of new indie-ish studios can rise from the ashes. That seems to happen from time to time in these situations.

Sounds like there was some bad business going on in the background.

@SpudBug: Hindsight is....