Layoffs strike 38 Studios

I could see this one coming when I saw that Kingdoms of Amalur turd. They tried to make that game all things to all people instead of a game that knows what kind of game it is. RPG players don't want arcade-style combat, anime elements and flashy crap uglying up the screen. When I saw the previews for this game, I was immediately turned off. Then they released it for a $60 asking price. That's just too damn much. If it had been a $20 Steam download, I wouldn't have much to say about it. My buddy got burned for the $60 and he facepalmed. I think Curt Schilling's name sold him on it more than anything else. He tried to play it for a few days but just hated it and gave up. 

This is a classic case of biting off more than you can chew. 

Breaking news here in New England. The entire staff of 38 Studios has been layed off. Basically it sounds like the state of RI (which has pretty much funded the company so far) has cut off funding for the company. They just don't see the company being profitable and don't see a point to pump more taxpayer money into the studio, is the reason they are giving.

I knew this would happen sooner or late. It would be a shame if the studio had to close. 

They'd be smart to have patience and wait for the company to make a profit. The loan's already been paid. Forcing them to gut staff and rush product will only hurt the chances of them actually paying the loan back. Better to be paid later than not at all if this ends up folding the studio which is what it looks like might happen.

Never good news for regular people who work hard. I hope you guys are all getting back on your feet soon!

So they are struggling financially but their next big move it to jump into the MMO arena?

I hope they have a pretty good plan B...

The really stupid part of this is, how did they expect to make payments on a loan, when they don't yet have an income? They should have pushed back repayment until after game launch...when the company actually started to do something to make a profit!

this is aslo EA fault and cant wait they go down i hope they go broke as well .

Chatty governor...

Do the average gamer needs to know this?

What sort of idiot makes a loan of $75 million to any business, let alone a software one?   Oh, of course, and idiot politician - Loonie Chafee by any chance?

Oh well...so much for that KOA patch

Seems like the 75 million loan was a bad idea for all parties.

Damn, I guess I won't be sending my Demo reel to that studio.

that sucks

Just a fyi 38S has not revied a single dime for RI's tax payers. They also have not asked any from them.

To be honest, I think when a Studio/developer starts off their first title should be a smaller game made on a fairly tight budget, so that developers can get used to not over-spending or wasting time and effort on pointless things, half of which get thrown out before the game is completed. The big boys (EA, Activision, Bethesda etc) are all used to throwing money away on titles (and can probably afford to), but if you're new, start small. When you've establish a high-demand IP, then feel free to go crazy.

I thought this article was going to be about 38 separate studios getting hit with layoffs, so is it bad that I'm a little relieved to actually read this?

It's only because I was wrong, you know.

I haven't played KoA yet but played the demo and plan on buying it during the steam summer sale.  I do feel guilty about not buying it when it came but I was unemployed at the time and had already pre ordered mass effect 3.  Sadly though publishers will use this to say new IP don't sell and will keep pumping out yearly un original sequels.  I dont know if this truly means anything but where I live someone came into a gamestop asking for this game about a month after it came out and the person working there said no gamestop in the area had even gotten one traded in to them yet because everyone has been enjoying the game.

Sad KoA was a good game. Hope those let go find work ASAP.

curt schilling is a typical tea party hypocrite. blasts people that take "handouts", yet now wants the taxpayers in RI to cover his ass. i wish i could say this was hard to believe, but living in boston, and having to hear him craft an opinion about practically everything and turn it political makes this whole situation sound like par for the course for this idiot.

Sorry to hear this... An All-Star team working on another bloody MMO, that's it for them.

Get Rich Gallup out of there and bring him back to Gamespot! Or Giant Bomb at this point. As long as he's in front of a mic talking about video games, I'm good!

Sad. I hope they can somehow get things together. Loved KOA, I also beat Skyrim and working on Witcher 2. Still playing KOA even though i beat the main story line. Looks gorgeous on my PC and the combat is a blast. Makes me sad how we complain about the same old games and when we get a new franchise that is actually really good we don't buy it, or at least pick it apart. Yet games like COD and Halo will continue to sell millions(Like both series, but very burned out on the FPS genre). COD 12 will break all kinds of sales records I'm sure. Resident Evil sells millions even though its crap(yes i have played it, broken mess). I don't get it.

Should have started as an indie... look at all the games that sell well on apps stores for little money and take little money to make but can make you amazing profit. Comon guys its 2012 who des not do indie these days even the creator of Mario and Nobuo Uematsu are working on indie games because they are amazing. You make a profit f that than if you want a big game like this make it with that money.. I still preffer indie do.

Man, never go to work for that company...or that guy. Doesn't pay staff....pays off loan. Says theirs a differing of ideas about who is actually on staff...thus cutting out anyone that actually contributed, but they don't consider as important as others...like an intern or something. Then give out layoffs to make sure they don't have to fulfill all of them. AND promote a new game coming out?!? Who is making THAT game? The same staff...or those still left...or a separate staff, who are now wondering if it's even worth it because they might not even get paid? Who knew that everyone just needs to get a Manager as a standard employee to negotiate contracts, enforce contracts...and get half up front pay and all that like an actor.

Let's see, I'm on my 3rd playthru in Skyrim... I finished the Witcher 2 twice...

KoA ... oh right... I'm like 3/4 in the game, and just stopped playing completely...

A slow, but sure, death....

"Hey, we're not going to pay you because we had to make up that bad check we tried to pay our loan payment with."

"Oh, and you're fired."

I expect we'll be hearing about labor commission lawsuits shortly on top of everything else.

I definitely don't have high hopes for this MMO

  I think 38 studios should've focused on popularizing and expanding the "Kingdoms of Amalur" brand, and if it becomes a successful money maker then put back some of the profits for paying off the loan so the tax payers of Rhode Island aren't  left paying the bill, then put money in the bank to pay your employees... Then put whatevers left down the money sucking black hole known as a MMO.

 I just can't see how such a small developer could think its a great idea to produce only one game (That wasn't a huge block buster as far as sales are concerned) and then spend every dime they have on creating a MMO... "Kurt- Okay everyone keep dumping wheel barrows full of tax payers dollars down the MMO money hole until we run out, then we'll just lay off everyone! 38 studios- YAY! Thats brilliant!"