38 Studios Entire Staff Laid Off, Amalur Needed 3mil Sold To Break Even
38 Studios Entire Staff Laid Off, Amalur Needed 3mil Sold To Break Even
Company News - posted by Crooked Bee on Fri 25 May 2012, 02:20:49
Tags: 38 Studios; Big Huge Games; Kingdoms of Amalur: ReckoningIn the biggest industry news of the day, Curt Schilling's 38 Studios has laid off its entire staff, including that of Big Huge Games, the Amalur co-developer, due to financial problems. That means 379 employees out of job now, who learned about their layoff via the following small memo:
Another "funny" thing is, despite the recent government loan of $75 mil, the government knew nothing of the layoffs, informs Destructoid:
Joystiq has some quotes from the press conference. In any case, whatever Curt Schilling is up to with the sudden radical layoffs, now we know 3 million copies were needed for Kingdoms of Amalur to break even, but the game "only" sold 1.2 million.
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.
These layoffs are non-voluntary and non-disciplinary.
This is your official notice of lay off, effective today, Thursday, May 24th, 2012.
Another "funny" thing is, despite the recent government loan of $75 mil, the government knew nothing of the layoffs, informs Destructoid:
Rhode Island Governor Lincoln Chafee held a press conference earlier today in which he said experts told him that Kingdoms of Amalur: Reckoning, 38 Studios' first game, needed to sell "in the 3 million range" in order to break even. According to studio founder Curt Schilling, Reckoning sold 1.2 million copies in its first three months of release. To Chafee and Rhode Island, that means "the game failed."
Governor Chafee's office had been in contact with Schilling yesterday, and others at 38 as recently as today, yet had no idea that the studio had laid off its entire staff shortly before the press conference. He heard the news during the press conference when journalists raised questions about the layoffs. 38 itself has still released no official comment; it is unclear if the company is planning to declare bankruptcy. If it does go under, ownership of all of 38 Studios' IP would transfer to Rhode Island's taxpayers.
Governor Chafee's office had been in contact with Schilling yesterday, and others at 38 as recently as today, yet had no idea that the studio had laid off its entire staff shortly before the press conference. He heard the news during the press conference when journalists raised questions about the layoffs. 38 itself has still released no official comment; it is unclear if the company is planning to declare bankruptcy. If it does go under, ownership of all of 38 Studios' IP would transfer to Rhode Island's taxpayers.
Joystiq has some quotes from the press conference. In any case, whatever Curt Schilling is up to with the sudden radical layoffs, now we know 3 million copies were needed for Kingdoms of Amalur to break even, but the game "only" sold 1.2 million.
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