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38 Studios Is Quickly Folding

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By: Stephen Crane

38 Studios, the developers behind Kingdoms of Amalur: Reckoning have layed off their entire staff and ar shutting down both their Rhode Island office, and subsidiary Big Huge Games, according to inside sources.

Things haven't been looking good for the developer for a while now. According to Joystiq, the employees haven't been paid since May 1st. That may in part be because of the large amount of money the studio owes the state of Rhode Island. In order to develop the game, the studio borrowed $75 million from Rhode Island and used the Amalur IP as collateral.

With money tight, and the game not selling as well as had hoped, 38 Studios is pretty much forced to close its doors. According to Rhode Island governor, Lincoln Chafee the game had to sell 3 million copies. According to Curt Schilling, one of the creators of the game, it only sold about 1.2 million in the first 90 days. 

Unfortunately for Rhode Island, the IP is only worth an estimated $20 million and the transfer of the property over to them leaves behind a fair amount of unpaid debt.

On the heels of this news, the greater video game industry opened up. Developers took to Twitter seeking jobs, and offering help to those who lost their jobs. Hopefully all 379 employees without jobs will be able to find something new and continue creating.

About Stephen Crane

Stephen was hooked by the NES at a very young age and never looked back. He games on a daily basis and is currently trying to climb his way up the ranked ladder on League of Legends! Outside of the video game world he actually likes running and owns a rapidly growing collection of toed shoes. Stephen Crane is the owner of Armed Gamer.

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