Blast Magazine has confirmed from industry sources that 38 Studios, the video game company founded by former Red Sox pitcher Curt Schilling laid off all of its employees Thursday and shuttered Baltimore arm Big Huge Games.
The financial difficulties of 38 Studios, which recently put out its first game, Kingdom’s of Amalur, have been well documented in recent weeks.
News of the closing of Big Huge Games, which was integral in creating the action RPG released earlier this year, came first, followed by a rumor, which Blast quickly confirmed, that 38 laid off its staff.
RI Gov. Chafee spoke to the press recently and said that an investor could rehire the 38 Studios staff, however he is “not here to share good news.”
In an email sent to employees, 38 Studios said that “the company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a company-wide lay off is absolutely necessary. These layoffs are non-voluntary and non-disciplinar
Sean Andrew Murray, Principal Concept Artist for 38 Studios and Big Huge Games has taken to Twitter as well to say his goodbyes: @Muttnhead: “In other news: I am now actively seeking fulltime and/or freelance employment!” … “Thanks, Big Huge Games, for 5+ amazing years. Hope everyone lands on their feet.”
Earlier this month it was reported that 38 Studios missed a $1.25 Million payment on its $75 million state-backed loan, leaving the company in default. The studio attempted to make a payment, only to have their check bounce, the loan was paid later, but not without having to let go of a number of employees.
Big Huge Games was no stranger to near death experiences, thee studio was close to being shutdown by former owner THQ before being bought by 38 Studios.
Blast has contacted both 38 Studios and Big Huge Games for comment, we’ll update this story if we hear anything.
Ivan Favelevic, John M. Guilfoil, and Giancarlo Saldana of the Blast Staff contributed to this report.