UPDATE: Following recent financial problems, the entire staff of 38 Studios has been laid off and Big Huge Games has been closed.
Kotaku broke the news that Big Huge Games was shut down by 38 Studios earlier today followed by a report from The Verge that 38 has let go its entire staff. Now, WPRI in Rhode Island has confirmed the layoffs.
According to WPRI, the following memo was sent to all 38 Studios employees earlier today:
"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."
Lead world designer Colin Campbell also confirmed the closure of Big Huge on Twitter, writing "Big Huge Games was home for my wife and me for our adult lives so far. I'll miss it terribly, but so proud. Good night and good luck."
In a press conference this afternoon, Rhode Island governor Lincoln Chafee said that the studio needed to sell three million copies of Kingdoms of Amalur: Reckoning in order to break even, but the game ultimately sold 1.2 million. "The game failed," he added.
In addition to the release of Kingdoms of Amalur: Reckoning in February, 38 recently revealed its MMO, Project Copernicus.
IGN wishes the best of luck to any employees let go today. For those affected, a Google Doc of industry jobs currently available has been making the rounds on Twitter.