Rhode Island based video game development studio 38 Studios has closed it’s doors as it laid off it’s entire staff, as well as closing Maryland-based subsidiary Big Huge Games. The studio’s first game, Kingdoms of Amalur: Reckoning failed to keep the company afloat, as it was told the game would need to sell about 3 million copies of the game just to break even.
Rhode Island Governor Lincoln Chafee was surprised by the matter stating during an afternoon press conference said that as of this morning they hadn’t heard a word about possible layoffs or a closure. When asked of the sudden closure of the studio Chafee said “Companies fail over night”.
In 2010, 38 Studios was lured to Rhode Island because the state guaranteed a $75 million loan hoping the studio would create jobs and bring in revenue for the state. However, due to the studio closing, the taxpayers of Rhode Island will now have to pay off the debt.
This is an unfortunate turn of events for the people of 38 Studios, and we at New Gamer Nation wish the best for everyone who lost their jobs.
Source: The Verge