38 Studios and Big Huge Games officially disbanded

In an unfortunate turn of events, the entire staff of 38 Studios has now been let go, and Big Huge Games has officially closed its doors. First reported on by Kotaku, 38 Studios was best known for their work on the recently released Kingdoms of Amalur: Reckoning with the help of Big Huge Games, which was a company that 38 Studios owned.

According to WPRI, each employee was met today with the following email:

“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.”

Seems like a rather cold way to inform your entire staff that they no longer have jobs. This news comes after a plethora of financial problems that 38 Studios was facing.

It’s pretty astonishing just how expensive game development is nowadays, as well as how crucial it is to balance risk versus reward in regards to where you dedicate most of your time and resources. Best of luck to everyone involved in this ugly situation.