Kingdoms of Amalur: Reckoning dev closes after game “failed”

Following reports last week that Kingdoms of Amalur: Reckoning developer 38 Studios had skipped payroll and defaulted on a huge loan from the state of Rhode Island, the company has officially laid off its entire staff of 379 full-time employees, both at 38 Studios as well as its subsidiary, Big Huge Games.

Local governor, Lincoln Chafee, put it down to the poor sales of Kingdoms, saying simply that “The game failed”.

The game was expected to sell around 3 million copies to turn a profit, but has managed only 1.2 million since its February launch.

An e-mail sent to staff yesterday read that:

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.

On the bright side, that’s a lot more time to play Diablo III.