38 Studios’ Big Huge Games was doing pre-production work on a sequel to last year’s new IP before the studio let all employees go last week.

Joystiq reports that, though Big Huge Games team could still be saved, it is unlikely that work could continue on Kingdoms of Amalur: Reckoning 2. The intellectual property is owned by 38 Studios, but could soon be in possession of Rhode Island.

Work being done on the sequel included improving graphical quality, removing loading times between zones, more combat animations, more branching quests, and greater player impact on the world of Amalur.

Joystiq’s source, who has chosen to remain anonymous given that the there is a minuscule chance the project could be saved, says “We had a good base to work from, and it was going to be all about improving everything. We listened carefully to fans and critics and were going to implement everything we possibly could.” 

It is possible a spiritual successor to Kingdoms of Amalur: Reckoning could become a reality. Big Huge Games did this previously when it was purchased by 38 Studios from THQ and converted its previous project into the Kingdoms of Amalur IP.

Hopefully Curt Schilling can pull out a miracle and this won’t be the last we hear of Amalur.