Layoffs Hit 38 Studios

Layoffs Hit 38 Studios

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The Kingdoms of Amalur developer has been forced to cut staff.

It looks like things are going to get worse at the beleaguered 38 Studios before they start to get better. The company was able to cover a loan payment of $1.125 million to the state of Rhode Island, but that left it unable to pay its employees last week. As a result of that ugly state of affairs, the studio has now reportedly been forced to make cuts to its staff.

"I believe it was a mix of who's made payroll and a number of layoffs," Rhode Island Governor Lincoln Chafee revealed, although he declined to offer specific numbers.

38 Studios founder Curt Schilling was even less forthcoming about the situation. "There's so much misinformation out there I cannot begin to clear it up with a sound bite," he said following a closed-door meeting with Chafee and officials from the Rhode Island Economic Development Corporation. "We're not asking the taxpayers for more money."

Chafee has already stated that while he's pushing to keep 38 Studios afloat, giving it more money is not an option. "I know that the taxpayers want answers, and they'll get them over time. All I can promise is that we're working hard to protect every penny of the investment that was made," he said. "Making sure this company somehow succeeds and we protect the tens of millions of dollars that we have already invested, and not getting in deeper."

Chafee had earlier let slip than 38 Studios' MMO, currently known only as "Project Copernicus," is slated for launch in June 2013, and the company actually released a largely content-free promotional trailer yesterday. But with the game a full year away at best, and nothing of substance to show at this point, any layoffs at all could prove disastrous.

Source: ABC6, Develop

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Chafee is keeping 38 Studios afloat alright, but the problem is it's floating face down.

This is the sort of practices that game companies need to stop if they ever hope to see any sort of success. You don't need to take out a loan for a cool million to make a good game. What you DO need to do is keep that talent around to make the good game. The sooner that these companies tighten the reigns on accountants the better off they will all be.

Makes me sad to hear that they're having so many problems.
I really liked KoA ... but even I have to admit trying to make an MMO before better establishing their studio was probably a bad call.

Kingdom of Amalur is still $60. I won't buy it at that price and this company needs to sell some games.

Antari:
This is the sort of practices that game companies need to stop if they ever hope to see any sort of success. You don't need to take out a loan for a cool million to make a good game. What you DO need to do is keep that talent around to make the good game. The sooner that these companies tighten the reigns on accountants the better off they will all be.

You are perfectly correct you need to get funding to the tune of at least 25 million to make a MMO, 1 million isn't anywhere near enough. Guess what if you can't pay your workforce then you are bankrupt and everyone loses their job, which has nothing to do with accountants, thats federal law. The choice the studio faces is lay off some staff now or close the company down

 

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