Both 38 Studios and Big Huge Games have shut down following the recent financial downfall. A copy of the e-mail informing the staff of the lay-offs was obtained by Gamasutra:
“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.”
According to WPRI, 38 Studios had 379 full-time employees.
Rhode Island governor Lincoln Chafee said a contributing factor to the financial struggles was due to Kingdom of Amalur: Reckoning not living up to expectations and that it needed to sell at least 3 million copies to stay afloat. However, Curt Shilling, owner of 38 Studios tweeted that the game exceeded expectation and sold 1.2 million copies in the first 90 days.