Reports are coming in that 38 Studios and Big Huge Games (the Baltimore branch of 38 Studios) have been closed.
A ‘a source with knowledge of the situation’ has told Joystiq that all the staff have lost their jobs. 38 Studios have not paid their staff since May 1st.
Big Huge games recently completed Kingdoms Of Amalur: Reckoning and it was hoped that a rescue package from Rhode Island’s government would save the developer.
Gamasutra are reporting the following rather abrupt email was sent to staff at 38 studios:
The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.
These layoffs are non-voluntary and non-disciplinary.
This is your official notice of lay off, effective today, Thursday, May 24th, 2012.
As always we hope those involved can find new jobs soon, Bryan Reno from TellTale games has already offered an olive branch to those affected and has tweeted there are positions available at The Walking Dead developer.