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Curt Schilling's '38 Studios' lays off entire staff, Big Huge Games to be closed

I'm not familiar with that game but if the title is anything to go by that sure as hell as an ISP.

38's MMO? Just another WoW clone probably. The other thread with some screenshots suggested as much to me, anyway.

Well yeah it helps that there was nothing (still is nothing) on the market like WoT.

They'll be releasing World of Warplanes and World of Battleships too, will be interesting to see how well they do.
 

Alchemy

Member
You just need to do it right. World of Tanks is raking it in, and that launched as F2P.

The thing is, F2P is a big advantage for smaller known games. Even "smaller" games like Lord of the Rings online and D&D Online see big profit jumps when switching to F2P. Subscription really only works for very specific situations, like being the biggest kid on the playground (WoW) or having the appropriate staff size and costs in comparison with a dedicated fan base (EVE).

The thing that happens is you're not looking to convert people to paying customers with a F2P model, but just not limiting how much money your fanatical users can give you so they make up for the non-paying users. Most subscription games have a max total they can give a developer (the sub fee plus maybe some additional microtransactions), F2P games have a much higher income ceiling per user.
 
"you didn't hear it from me" style confirmation of these guys getting new jobs is enough for me.

i would be lying though if i said i wasn't still wishing there was a patch coming out for KoA:R.
 
It boggles the mind just how deep the ridiculous of this whole affair is turning out to be...crazy sums, agendas----the whole lot of it is worse than fiction.
 
So dude tried to start a new company, employing hundreds of people, dedicating himself to building something great and directly communicating with fans but because it didn't work, "Fuck that guy."?

He dared to start something and build it. He, and the hundreds of employees he worked with, busted their butts to create this world. I'm glad he did, and I'm very glad I purchased his game at $60 because, for all its flaws, it was a hell of a fun game.

But that's right, "Fuck that guy."

Edit: And don't do the whole Occupy, 1% nonsense. The employees had two job fairs happen this week, one from Turbine, hoping to snap them all up. It's games, people move around a lot. They did miss out on a month, which is very unfortunate. But they'll be better off than most, and they have been employed for quite a while at 38. Finally, of course Schill had the financing worked out so he'd be protected. The state offered the $75 million loan didn't they? He'd have been crazy to turn that down. But without that loan, the studio would never have been created, and none of the jobs would have been around to be lost. It sucks all around, but it's a lot deeper than "Fuck that guy".
You realize that the Rhode Island studio has yet to release anything? The game you bought was made in Maryland by BigHuge Games, with superficial 38 Studio support, right?
 

Gav47

Member
It's happened before on Steam where a Steam sale saved a floundering developer.

If you're talking about Introversion they only have around five employees, I don't think a Steam sale will save two full studios, although i wish it could, KoA was a pretty solid game from what little I played of it. Best of luck to everyone.
 

wondermega

Member
Why would a state fund a videogame company with tax payers money. That is just beyond any comprehension.

It's been bizarre to say the least. Someone looked at Blizzard and wow and said "it makes sense to do this, and our state gov't can easily suck this HUGE steady stream of money off of such an investment" - clearly someone who got sweet-talked into thinking it was a good idea, with zero knowledge of the history of MMOs (and why most of them fail, if they even make it to release)

Or 38 Studios was just a very poorly managed company.

I don't think that is difficult to imagine.
 

kuroshiki

Member
There is no way 3 million sale for KoA to break even. You're talking about 150 million dollars.

Didn't buy the game but sad to see those people lose their job.

1.2 million sales should have net them some quite nice amount of money. What happened.
 

Aesthet1c

Member
Really bummed to hear this.

I can't believe they were shooting for 3 million to break even on a brand new IP. That was some serious mismanagement.
 
schilling.jpg



Mitch Williams is laughing at you, Curt

Life continues laughing at Mitch Williams.

As for the story, I feel bad for everyone that didn't get paid and is now most likely never going to get paid. Making an MMO your first post-baseball career game simply because you played them a lot while you were in baseball was not a smart move, and now Rhode Island and all Curt's employees are paying the price. Sad.
 
I'm pretty sure it needed 3 million in sales to keep the company afloat, not to break even.

probably. If you make today what you spent yesterday that leaves nothing for tomorrow, leaves nothing for investments, leaves nothing for growth. Especially the case when you keep hiring people...lots of people.

That or that number was pulled out of someone's poopy area.
 

Coolwhip

Banned
I'm really curious how you can need 3 million sales to break even. What kind of crazy mismanagement happens at gamestudios? Or is it something else?
 

wsippel

Banned
It's been bizarre to say the least. Someone looked at Blizzard and wow and said "it makes sense to do this, and our state gov't can easily suck this HUGE steady stream of money off of such an investment" - clearly someone who got sweet-talked into thinking it was a good idea, with zero knowledge of the history of MMOs (and why most of them fail, if they even make it to release)
It isn't really all that bizarre. Crytek was funded by the German government for example, even though our government and our media hates first person shooters.
 

border

Member
I'm really curious how you can need 3 million sales to break even. What kind of crazy mismanagement happens at gamestudios? Or is it something else?

Again -- 3 million needed to keep the company afloat. Not 3 million to cover development costs of Reckoning.
 

Alchemy

Member
Edit: And don't do the whole Occupy, 1% nonsense. The employees had two job fairs happen this week, one from Turbine, hoping to snap them all up. It's games, people move around a lot. They did miss out on a month, which is very unfortunate. But they'll be better off than most, and they have been employed for quite a while at 38. Finally, of course Schill had the financing worked out so he'd be protected. The state offered the $75 million loan didn't they? He'd have been crazy to turn that down. But without that loan, the studio would never have been created, and none of the jobs would have been around to be lost. It sucks all around, but it's a lot deeper than "Fuck that guy".

It is nice that there are some developers landing on their feet after this, but having to lose your jobs (and benefits) for any period of time is harsh. Especially if anyone has health care lapse for any period of time and has a preexisting condition. Then they're out of health care for basically half a year for that issue. And you have to consider any people that started their careers at 38 Studios, its going to be extremely difficult to get a new job with little to nothing to show for it.

And only a fool takes a loan with the stipulations that were attached to that $75 million without understanding the financial structuring needed for a company to pay it back. It puts your employees lives at risk if you fail, and its worse if they managed to get any employees to leave existing jobs and relocate. If you have a loan that stipulates you need X employees, you better damn well have a solid schedule for paying those people, releasing a product, and turning some sort of profit to maintain operations. Otherwise you don't just take the lone and say 'fuck it'.

I don't see what is so "Occupy 1% nonsense" about holding incompetent people responsible for dragging 400+ people through this shit while making sure they're protected from it.
 

ironcreed

Banned
I'm really curious how you can need 3 million sales to break even. What kind of crazy mismanagement happens at gamestudios? Or is it something else?

Yeah, there is a lot that we don't know. I would not be surprised to hear of fraud on some level. This whole thing just stinks to me, but I guess I just hate to think that they were really that incompetent on every level of planning.
 

Alchemy

Member
And for those not on the 'fuck this guy' bandwagon yet (from our favorite source Kotaku):

38 Studios just laid off its entire staff, both Providence and BHG studios are being shuttered.

We have not received a paycheck since April 30th.

On May 15th, we found out we were not getting paid when our checks did not hit our accounts.

Our medical insurance runs out tonight at midnight.

We found this out when an employee's pregnant wife was told by her doctor, this was on Tuesday 22nd May this week.

The company has not communicated anything concrete to the team throughout this process, leaving team members to figure out insurance stop-gaps (where people could afford it), etc. on their own.

That is beyond fucked up.
 

wondermega

Member
It isn't really all that bizarre. Crytek was funded by the German government for example, even though our government and our media hates first person shooters.

well, the ignorance about "why making an MMO if you aren't Blizzard" (or at the very least, of some seriously competent pedigree, in that you've done something like that before) wouldn't be such a wise idea to take on such a big investment. Its like they were irresponsible as far as the risk was concerned.

..although I strongly suspect this happens all the time in smaller cases which don't become quite so publicized.
 

ghostmind

Member
Management should really be held legally/financially accountable when this shit happens. But they won't. Shows how much they actually valued their employees though.


EDIT: and taking Big Huge Games with them. Damn.

You've done the industry a disservice Schilling - please don't show your face around here again.
 

Shard

XBLAnnoyance
Management should really be held legally/financially accountable when this shit happens. But they won't. Shows how much they actually valued their employees though.

Given how much egg is on the face of Rhode Island right now, I do not think management is going to escape this.
 

Mahonay

Banned
Given how much egg is on the face of Rhode Island right now, I do not think management is going to escape this.
Yeah definitely not. Schilling is going to be reeling from this for a long time to come.

Please welcome Rich Gallup to Giant Bomb.
 

ironcreed

Banned
Management should really be held legally/financially accountable when this shit happens. But they won't. Shows how much they actually valued their employees though.

I remember an interview with Curt leading up to the KOA launch. He said, "This is not just a place to work, but a place to belong." Sure thing there, Curt.
 

Shiggy

Member
Management should really be held legally/financially accountable when this shit happens. But they won't. Shows how much they actually valued their employees though.


EDIT: and taking Big Huge Games with them. Damn.

You've done the industry a disservice Schilling - please don't show your face around here again.

BGH would've been long dead without Schilling, wouldn't it?

728a0df037d8184dbf983eea1779f6e7.jpg


I wonder why they created a new game instead of finishing that one.
 
BGH would've been long dead without Schilling, wouldn't it?

728a0df037d8184dbf983eea1779f6e7.jpg


I wonder why they created a new game instead of finishing that one.

They didn't create a new game. That game was essentially shelved when BHG and THQ parted ways, and 38S picked BHG back up and had that game reskinned to be in the Amalur universe.
 

DMeisterJ

Banned
This week has been really eye-opening as a peek behind-the-scenes of the video game industry. Bungie's contract/schedule leak, Activision's lawsuit, and this.

I didn't like the Amalur demo, but good luck to all those affected.
 

Mahonay

Banned
BGH would've been long dead without Schilling, wouldn't it?

728a0df037d8184dbf983eea1779f6e7.jpg


I wonder why they created a new game instead of finishing that one.
Maybe they could have kept afloat on their own with lower budgeted RTS games?

You're right though, Big Huge probably would have disbanded by now. Still, this is a shitty way to go. At least if they were on their own they likely could have transitioned people out a little more gently.
 

Shard

XBLAnnoyance
BGH would've been long dead without Schilling, wouldn't it?

728a0df037d8184dbf983eea1779f6e7.jpg


I wonder why they created a new game instead of finishing that one.

Unfortunately yes, THQ was going to shut down Big Huge until 38 bought them. Also the game released KoA: Reckoning is pretty much the same game with a different coat of paint.
 

semiconscious

Gold Member
You've done the industry a disservice Schilling - please don't show your face around here again...

i'm still convinced the guy was gamed by his 'financial advisers', who were happily pocketing money & telling him everything was fine right up till the end (as their kind are often prone to do)...

sorry, curt, & sorry, everyone else...
 
As a gamer, what hurts most is those two patches they promised that will never see the light of day, which essentially means Amalur will never be playable to me again.
 

Shiggy

Member
They didn't create a new game. That game was essentially shelved when BHG and THQ parted ways, and 38S picked BHG back up and had that game reskinned to be in the Amalur universe.

I don't know, for a simple reskinning it took way too long (3 years). To me, it looks like they've taken the basic gameplay and built a new game around that with a new visual direction, expanded gameplay, new areas.

Edit: Woah, this still looks gorgeous: http://www.youtube.com/watch?v=04J-QP5Sr2o&feature=related
 
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