Rhode Island’s 75 million dollar gamble has failed. WHDH, WCVB, and CSNNE are all reporting that Curt Schilling’s gaming company 38 Studios has laid off its entire staff. Further reports from Kotaku indicate that not only has 38 Studios been shut down, but also Big Huge Games as well.

Charles Dane, former lead community manager at 38 Studios confirmed it in this twitter post:

Yup and now on the market. I had an awesome run with @38Studios but this dream is now ending.


Kotaku posted this from a former employee:

38 Studios just laid off its entire staff, both Providence and BHG studios are being shuttered.


We have not received a paycheck since April 30th.


On May 15th, we found out we were not getting paid when our checks did not hit our accounts.


Our medical insurance runs out tonight at midnight.


We found this out when an employee’s pregnant wife was told by her doctor, this was on Tuesday 22nd May this week.


The company has not communicated anything concrete to the team throughout this process, leaving team members to figure out insurance stop-gaps (where people could afford it), etc. on their own.


Gamasutra posted a copy of the letter that was sent to employees. It says:

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.


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