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Reports: 38 Studios Lays Off Staff

by Jim Reilly on May 24, 2012 at 10:52 AM

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Numerous reports this afternoon are saying 38 Studios has laid off its entire staff and closed developer Big Huge Games.

The studio has yet to make an official comment on the matter at this time. WPRI obtained a purported internal e-mail from 38 Studios confirming the layoffs:

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.

Gov. Lincoln Chafee said in a press conference this afternoon he was not told about any layoffs at 38 Studios as of this afternoon. He also noted that Kingdoms of Amalur: Reckoning needed to sell three million copies to break even. 38 Studios owner Curt Schilling noted on Twitter the game sold 1.22 million copies in its first 90 days.

[Source: WPRI, Joystiq]