It was only a matter of times once things started going south at 38 Studios earlier this month, but it appears that the employees at both that studio and Big Huge Games have been laid off.
Ever since 38 Studios bailed on paying employee salaries to pay back their debt to the state of Rhode Island, the company had been looking for outside funding but apparently they failed to find it in time. Without another loan from the state, 38 Studios shut its doors today with this unceremonious email:
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 trouble apparently stemmed from the fact that Kingdoms of Amalur: Reckoning, the studio’s first published game, did not sell nearly as many copies as hoped. Reckoning sold 1.2 million copies but needed to move 3 million to be considered a success. That’s a rather high target, especially for an unproven IP with very little marketing from EA’s part.
What do you guys think of 38’s mass layoff? What’s you opinion on the situation in general?
Source – Giant Bomb