Entire 38 Studios Staff Laid Off, Effective Immediately

[lastjustice]

This game was destined to fail..it came out with in 6 months of Skyrim. That certainly didn't help it's sales as every fantasy rpg going be compared to it. It seemed like an alright game, but I already had my fill of the fantasy world setting by time it came around and want something else. I'll likely pick it at some point but it's not going be soon enough save any of these people's jobs.

 

[jmarquiso]

From Schilling's Wikipedia page:

"In July 2010, the Rhode Island Board of Economic Development approved a $75-million guaranteed loan to 38 Studios. 38 Studios has promised to bring 450 jobs to the state by the end of 2012. The company is developing two products. One is a single-player game called ?Kingdoms of Amalur: Reckoning,? which was released in February, 2012. Executives from 38 Studios introduced the game at the Comic-Con 2010 convention in San Diego.[61]

In May 2012, 38 Studios defaulted on its loan from the state of Rhode Island and failed to meet payroll obligations to its employees. Consequently 38 Studios and it's subsidiary, Big Huge Games, had to lay off their entire staff. [62]"

So they funded the game on a loan they could not pay back. Unfortunate. Best intentions, after all.

 

[More Fun To Compute]

Almost 400 people? I don't know if it's more crazy that they were all let go at once or that so many people were employed there in the first place. Reminds me of Realtime Worlds except with even more employees.

 

[DeMorquist]

Panic.

Panic and Run.

 

[Phoenix09215]

I first read the title as "Entire 38 Studios Staff Laid". This is not what i was expecting at all, no this is much more serious... And for the ones that aren't even getting laid, well my heart goes out to them even more.

 

[FoolKiller]

Meanwhile EA is still profiting. Oh yes people, continue to tell me how fine the industry is doing and I'll continue to tell you just how fucking wrong you are.

Ironically, my hatred of EA is what helped this happen. I refuse to buy new games published by EA. It really is a shame because I liked the demo when I played it.

 

[somonels]

I have great feelings of apathy about this... except the hilarity of the (gaming) business world, man that stuff cracks me up.

In before "They made a game that sucks therefore deserved to be fired" comments start drowning the thread.

You are the only one, doesn't that make you feel stupid?

I said "In before". Before you start throwing insults around, I suggest you learn how to read.

Am not familiar with that expression, it just reads like you want everyone to know that you are here 'then' and after which point the '"They made a game that sucks therefore deserved to be fired" comments start drowning the thread' are surely to follow.
"I am here now and without saying it myself everyone will start hating this game"
But don't mind me. I. Can't. Read.

I also seem to be on an Experimental Double Secret Hush-Hush double probation (shh, secret), feel free to report me if anyone has their feelings hurt because of whatever.

 

[Zanderinfal]

In before "They made a game that sucks therefore deserved to be fired" comments start drowning the thread.

You are the only one, doesn't that make you feel stupid?

I said "In before". Before you start throwing insults around, I suggest you learn how to read.

Love how you yourself included an insult in your own post telling him not to insult you, even if it was deserved still couldn't not laugh at the idea.

CAPTACHA: "drink milk" Why thank you, I shall

 

[Tiger Sora]

It's nice to hear some of the industry rallying together in and to support those workers.

I doubt 38 Studios will ever reopen. Or at least that many former employees wont go back if they do. Killing the entire staff with one clean sword cut with no prior notice of the execution date, they tend to hold a grudge.

 

[NezumiiroKitsune]

The last bit annoys me. Companies are creating jobs for them. If these companies had the need for employees prior to this, why are they not advertising this already? Creating jobs because someone is laid off, while well meaning, is a serious fucking insult to every hard-working already unemployed programmer, artist, UI designer, storyboarder, or other, in the business.

That has irritated me so much.

Anyway, my most sincere wishes of successful remployment to those who were laid off. I'm as surprised as they probably were, given how well Amalur appeared to do on the surface. It didn't sell Skyrim numbers, but it's a new IP by a relatively unknown developer, it was never going to.

 

[Aurora Firestorm]

Part of this was RI's governor wanted to spite the Democrat who came before. The current guy always thought the loan to 38 Studios was a bad idea, so he's going out and lying and sinking the company to basically show how right he was.

 

[Something Amyss]

Except, apparently, them.

I sincerely doubt even that's true.

 

[FallenTraveler]

The sad part is they made a pretty good game, sure, it took place in a fairly standard setting, and was missing something in quests and equipment. The combat was incredibly satisfying. That kind of combat in an mmo would have been incredible.

I'm happy to hear that studios are considering apps from the former employees.

I don't know why I trusted this company to not fold...

 

[rob_simple]

It is. When a game sells a million copies in a few months and that causes the company to implode in bankrupcy it's a sign the industry is doing something wrong. I have been expecting the video game industry to collapse for years now and now it begins.

While I do agree that it's astonishing sales figures like that can still technically be deemed a failure, I think you are perhaps blowing the situation out of proportion. The industry is never going away: the crash in 1983 didn't kill it and gaming was substantially less popular then than it is now. One of the benefits about the gaming industry, that doesn't really stand in any other industry as far as I can tell, is how a folded company can be reborn a few months down the line with a new name and some of the original staff and continue to make great games.

OT: This is rubbish for the staff but I'm ashamed to say my second though was 'at least now I can pick this game up cheap.' Would that happen, though? I mean, if the company is bankrupt then wouldn't they keep the prices of their products up to recoup as much money as possible?

 

[Something Amyss]

I don't know why I trusted this company to not fold...

Quite possibly because you had no way of knowing the financial chicanery behind the scenes?

 

[Something Amyss]

When a game sells a million copies in a few months and that causes the company to implode in bankrupcy it's a sign the industry is doing something wrong.

Assuming there's a correlation between the two, even though no such correlation has been demonstrated. In fact, from the news reports, it seems that the business management end of things was so screwed, this could have been the next WoW or Skyrim and they still would be in trouble.

 

[Evil Alpaca]

The last bit annoys me. Companies are creating jobs for them. If these companies had the need for employees prior to this, why are they not advertising this already? Creating jobs because someone is laid off, while well meaning, is a serious fucking insult to every hard-working already unemployed programmer, artist, UI designer, storyboarder, or other, in the business.

That has irritated me so much.

I'm curious why you think companies are creating jobs out of pity. Also, why would these companies create unnecessary positions for talented employees?

This strikes me as opportunistic of companies like PopCap, Cryptic, Gearbox,and EA, because they can hire experienced personnel from a decent game. This isn't to say that a beginner artist or programmer from 38 is going to be hired over someone more qualified. It means that these companies can get people with lots of experience for relatively cheap.

 

[Mr Companion]

Its terrible when so many people are laid off, seeing that Email in their inbox must have felt horrifying.

The creative directors of the game however should have seen that the standard fantasy setting is just too predictable and unimaginative. In a way I hope this sends out a message to publishers that bog standard fantasy with a little twist isn't going to bring in the crowds any more.

 

[Reyalsfeihc]

It really seems to have been mismanagement from the upper executives and share-holders in the company. Whoever's bright idea it was to hire on 400 workers at two studios as a company with absolutely no PR to only try to make a AAA budget game was just silly. Really poor foresight on their part.

 

[Hungry Donner]

Almost 400 people? I don't know if it's more crazy that they were all let go at once or that so many people were employed there in the first place. Reminds me of Realtime Worlds except with even more employees.

Many of those people were part of Big Huge Games, which 38 Studios purchased. BHG was already working on a single-player RPG and after joining 38 Studios this was turned into a KoA title.