Kotaku) I made the observation a few days ago that due to 38 Studios not making payroll, the odds were that it would share the fate of other business who did not make payroll. Unfortunately, this fate occurred very quickly after the initial reports. I was hoping that 38 Studios might be given a reprieve by their creditors or find an angel investor. The credit economy isn't too flash right now with the European debt crisis, so no luck there. In 38 Studios case it turns out that not only had management failed to make payroll, they had also stopped paying health insurance. Of course the staff had not been informed of any of this. It was only found out when an employee's pregnant wife was told by her doctor. None of the blame for any of this should fall on the developers, artists, and ancillary workers. These folks are now without jobs or health insurance. In a tough economy life is about to become more difficult for a lot of people. No, any blame should be laid squarely at the feet of management. It's quite obvious looking at the screenshots that have come out of the studio in the last few days that the game was progressing well, and looking great. The people who were doing their jobs did so well. There are a bunch of thoughts circulating in my head at the moment. Things like whether or not studios should attempt a AAA MMO as their first game; will small scale indie MMO's like Wurm Online or Realm of the Mad God save the genre; the 'sameness' of the AAA MMO scene. But I'll leave that to later. For now I just want to wish the ex-employees of 38 Studios and Big Huge Games all the best and hope you folks find something else quickly.
38 Studios has failed to pay its employees, and has laid off temp and contract workers. That's the worst kind of news that an investor can hear. When a company can't make payroll, it's not generally long for the world. What I'm wondering is where that $75 million got to. Schilling, as I understood it, invested something like $30 million of his own money, which coupled with that $75 million from RI provides a bankroll of over $100M. They've had a game release which presumably did well too. Where is all the cash? It's not like Project Copernicus has the scope of the $300M budget for SWTOR. Or does it? In anycase, it's probably not wise to get your hopes up for the 38 Studios MMORPG. Not unless an Angel Investor swoops in at the 11th hour. Or another studio buys the IP and development assets.