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Layoffs cripple Kingdoms of Amalur developer, 38 Studios

Kingdoms of Amalur: Reckoning Screenshot - Curt Schillings

Rhode Island governor Lincoln Chafee confirmed that a wave of layoffs have hit 38 Studios, developer of the early February release Kingdoms of Amalur: Reckoning.

Chafee informed the media after a private meeting with the state's Economic Development Corporation, which granted funds to the developer when it relocated to Rhode Island in 2010.

"I believe it was a mix of who's made payroll and a number of layoffs," Chafee said.

38 Studios' financial struggles made the news recently when it missed payroll and its $1.125 million loan repayment earlier this month, causing trouble for taxpayers. It cleared a check for the amount last week.

"I know that the tax payers want answers, and they'll get them overtime," he continued. "All I can promise is that we're working hard to protect every penny of the investment that was made."

"We're not asking the taxpayers," said Curt Schillings, founder of 38 Studios.

The company is planning its next game, an MMO called Copernicus, for June 2013.

Follow @wita on Twitter for tales of superheroes, plumbers in overalls, and literary adventures.

[The Verge]

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Stephanie Carmichael Twitter: @wita
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