38 Studios layoff letter says company experienced an "economic downturn"

XMNR: 38 Studios reportedly laid off all of its employees including subsidiary Big Huge Games on Thursday. The layoff letter sent to employees was leaked not long after confirming the news and filled with the kind of odd corporate speak we all have come to love.

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zeal0us2434d ago (Edited 2434d ago )

I highly doubt everyone is "fine", especially the ones with families. Not to mention not being paid since May 1. Wish the best of luck to the employees.

DFogz2433d ago

They tried to pay back 1.1mil of the 75mil loan...and their check bounced.
The company is in financial ruin, the CEO and senior VP already jumped ship, they haven't paid employees since April, and all employees insurance and benefits are gone.

dcbronco2433d ago

Another company down. Just goes to show you how careful you have to be. It's expensive making games and you can't afford to fail over and over. Not any company. This is why exclusives don't matter. Too much risk involved. When they don't sell you hurt your company. A few failures are fine when you're doing well otherwise. But when the company is struggling, no one can afford a series of failures. I know this wasn't an exclusive. But it makes the reality of the importance of making games that sell clear.

MrMister2433d ago

I agree, but in my opinion, that also can mean getting stale games (like COD) that never take chances. Maybe it would be better if game developers skipped corners to save money (like use middle ware, unreal engine, etc). One of the biggest reasons the game industry in Japan is in ruins is because most of them don't embrace middle ware or unreal as much as the West does--so the cost of game development is high since they still make their own engines. That's just one way to cut costs, i suppose--but they'll need more ways if they don't want to let their fear of failure cause them to make lame generic games that wont sell anyway.

dcbronco2431d ago

I understand the desire to want to do everything in-house. Independence is always better than looking to some money hungry corporation to help you. I think it is more a matter of pacing. Small companies should use middleware and license engines. But I believe they should also use things like XBLA and PSN to introduce new IP. There is no reason a small devs should spend 20 million plus to intro new IP. Do an Arcade level. Even a playable tech demo. Create interest and then go for a AAA version. Too many get stuck in the old ways of doing things.