Digital Spy

Search Digital Spy
9

Gaming News

'Kingdoms of Amalur' developer 38 Studios 'lays off entire staff'

By
38 Studios has reportedly laid off its entire staff.

In addition, subsidiary company Big Huge Games, who helped 38 Studios develop Kingdoms of Amalur: Reckoning, has closed.

'Kingdoms Of Amalur: Reckoning' screenshot

© EA



"The Company is experiencing an economic downturn," read a layoff letter posted on WPRI. "To avoid further losses and possibility of retrenchment, the Company has decided that a company-wide layoff is absolutely necessary.

"These layoffs are non-voluntary and non-disciplinary. This is your official notice of layoff, effective today, Thursday, May 24, 2012."

Started by Curt Schilling and based in Providence, Rhode Island and Maryland, 38 Studios' sudden closure supposedly comes as a result of Kingdoms of Amalur failing to turn over a profit.

Rhode Island governor Lincoln Chafee stated at a press conference: "The game failed. That was integral to the success of the company."

Kingdoms of Amalur sold 1.2 million copies over 90 days, but it apparently needed to sell around 3 million to break even.

Chafee added that the state ultimately chose not to contribute more taxpayer money to help out 38 Studios.

"I would gladly extend the life of the company if I had confidence it would lead to profitability," he continued. "We were not given that confidence."

You May Like

Comments

Loading...