38 Studios & Big Huge Games Fold

It has been learnt tonight that 38 Studios and Big Huge Games, the developers for Kingdoms of Amalur: Reckoning, have faced huge lay offs and closures.

The entire staff for 38 Studios has been laid off and Big Huge Games has faced a closure. The pair had recently worked on the critically praised, Kingdoms of Amalur: Reckoning. 

The game needed to reach sales of 3 million to resolve the company’s financial problems. Sales of 1.2 million just didn’t cut it unfortunately. Here’s what employees were reportedly told:

“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.”

Our thoughts go out to all those affected by the lay offs.