The on going story of 38 Studios' problems is continuing to gain momentum as the governor of Rhode Island, Lincoln Chaffee, offered that the company had been making layoffs, indicating it's not just the previously confirmed temporary and contractual workers who have been let go of. Pressured by reporters after a meeting with Chaffee and the Rhode Island Economic Development Center, founder Curt Schilling, offered that there was "misinformation" on the issue and that the company would not be looking for more money from taxpayers.
38 Studios were given a $75 million loan by Rhode Island EDC when they relocated from Massachusetts to Rhode Island. A total of $49.8 million of these funds have been paid out, but 38 Studios have been struggling to make repayments, and alledgedly they haven't made payroll this month.
Meanwhile, local MMO studio Turbine, have indicated that they will be offering new positions for those left without a job and Avalanche Studios, who recently opened an office in New York will also go to Rhode Island looking to recruit former 38 Studios employees or remaining staffers who feel uncertain of their future.
38 Studios is comprised of the Rhode Island studio, working on Project Copernicus, a MMORPG set in Amalur, and Big Huge Games, who recently released Kingdoms of Amalur: Reckoning, located in Maryland.