38 Studios and its subsidiary
Big Huge Games have both laid off all employees on Thursday, May 24th, 2012. 38 Studios' first game,
Kingoms of Amalur, met with good sales and positive reviews, but profits may not have been good enough to keep the company in fiscal health. Despite Kingdoms of Amalur: Reckoning selling "1.22 million copies in its first 90 days", "The game failed, the game failed," Rhode Island Governor Lincoln Chafee during the evening press conference.
Source sent
Kotaku an email detailing the ongoing situation. "38 Studios just laid off its entire staff, both Providence and BHG studios are being shuttered," began the email. "We have not received a paycheck since April 30th. On May 15th, we found out we were not getting paid when our checks did not hit our accounts. Our medical insurance runs out tonight at midnight. We found this out when an employee's pregnant wife was told by her doctor, this was on Tuesday 22nd May this week."
"The company has not communicated anything concrete to the team throughout this process, leaving team members to figure out insurance stop-gaps (where people could afford it), etc. on their own."