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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