Amalur Dev 38 Studios Faces Financial Woes, Lay Offs Reported
Written Friday, May 18, 2012 By Richard WalkerView author's profile
Kingdoms of Amalur: Reckoning developer 38 Studios has found itself in financial turmoil this week, following loan negotiations with the Rhode Island Economic Development Corporation, which the studio owes an overdue repayment of $1.25 million. As a result, 38 has failed to make its staff payroll. None of the 300+ staff at 38 Studios have been paid this week.
Worse still, sources close to Joystiq suggest that former baseball pro, Curt Schilling's studio may have laid off all of its temporary staff and contractors. The last financial report for 38 Studios states that the company employs 379 full-time staff, as well as 34 full-time contractors and 8 interns. Its cheque to the RIEDC bounced recently, due to insufficient funds.
Kingdoms of Amalur: Reckoning was 38 Studios debut title, an RPG adventure written by RA Salvatore with art from renowned comic book artist, Todd McFarlane. It garnered a generally positive critical reception and has sold more than 400,000 copies in North America alone. However, the fate of 38 Studios hangs precariously in the balance.