UPDATE 2: A press conference with Rhode Island governor Lincoln Chafee be happening now.
“It’s not a good situation,” he said. “I’m not here t' share good news. I wish things be different.”
Chaffe said there be discussions between 38 Studios 'n the state about giving more taxpayer money t' the developer, but the state declined.
“I would gladly extend the life a the company if I had confidence it would lead t' profitably,” said Chaffe. “We be not given that confidence.”
When the state be talking t' 38 Studios, there be no mention a layoffs. In the press conference, the state has not acknowledged whether there have been mass layoffs, which appears t' be the case.
The state be unaware whether 38 Studios will file for bankruptcy.
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UPDATE: According t' WPRI, here's the email that be sent t' 38 Studios employees today:
The Company be experiencing an economic downturn. t' avoid further losses 'n possibility a retrenchment, the Company has decided that a companywide lay off be absolutely necessary.--
Both Polygon 'n Joystiq be reporting based on sources familiar with the situation that 38 Studios has laid off it be entire staff. This includes both the main 38 Studios office, as well as all employees at Big vast Games, which 38 Studios owned.
Rhode Island governor Lincoln Chafee had commented as recently as yesterday that all attempts be being made t' rescue the studio from closure. He also stated that 38 had yet t' find additional outside funding. Reports coming from inside the studio stated that employees had not been paid since May 1, 'n that all employee health benefits ran out as a today.
Details on this situation be still being investigated. We'll update this story as soon as we know more.
