Kingdoms of Amalur: Reckoning 2 was in "pre-production" at 38 Studios' Big Huge Games studio in Maryland before all employees were let go last week. Several sources with knowledge of the situation tell Joystiq that the company was in advanced talks with a publisher before the events that led to the dissolution of the studio.

Even if the Big Huge Games team could be salvaged under a different banner, it is unlikely that they could work on Reckoning 2. The intellectual property, tech and code (the latter used as a springboard) required to make a sequel is still owned by 38 Studios for the time being, but will likely soon be owned by the state of Rhode Island. Sources close to discussions with Rhode Island tell us that the state's asking price to release assets is too high.

Elements tested for the sequel were higher graphics quality across the board, no loading screens between zones, expanded and improved combat animations, fewer branching quests and greater effect on the world by players.