38 Studios lays off entire staff | The Verge - 0 views
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Curt Schilling's 38 Studios laid off all of their employees today, shutting down both their Rhode Island office and Maryland-based subsidiary Big Huge Games, a source familiar with the company tells Polygon. The news came as a surprise to nearly everyone involved, including the state of Rhode Island and Governor Lincoln Chafee who during an afternoon press conference said that as of this morning they hadn't heard a word about possible layoffs or a closure. During the evening press conference Chafee attributed the sudden studio closure and financial plummet to the studio's fist game, Kingdoms of Amalur: Reckoning, which he said "failed."
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"The game failed," he said. "The game failed. That was integral to the success of the company."
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He told reporters that experts told them it would have had to sell 3 million copies to break even. Schilling has said that the game sold about 1.2 million copies in its first 90 days. "Companies fail over night," Chafee said, in response to a question about the sudden closure. The studio's financial turmoil came to light earlier this month when they first missed and then later made a $1.125 million payment to the state of Rhode Island.
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