38 Studios reportedly lays off all employees

It looks like the saga of 38 Studios won't have a happy ending. The Verge is reporting via unnamed sources that the game developer formed by former Boston Red Sox pitcher Curt Schilling has now laid off all of its employees. The developer, with teams in both Rhode Island and in Maryland, reportedly had 379 team members as of March.

This news could be the final curtain call on the the developer, after its financial issues first came up earlier in May. At that time, 38 Studios failed to make a small payment on the $75 million loan issued to it by the government of Rhode Island in 2010. 38 Studios made that payment to the state government last week but that apparently wasn't enough to save the developer behind this year's fantasy RPG Kingdoms of Amalur: Reckoning.

The big question now appears to be how the state of Rhode Island will deal with the fallout of lending tens of millions of dollars to a game developer that went belly up before paying back most of its loan. Another question is how Schilling will deal with his company apparently shutting down. So far, he has said little about what happened to 38 Studios and how the company has spend all the money that was given to it by Rhode Island.

Source: The Verge

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