38 Studios is Kaput

Earlier this month, it became clear that 38 Studios was in serious financial peril. The developer of Kingdoms of Amalur: Reckoning was having trouble making an interest payment on its Rhode Island-guaranteed loan, but things are clearly far worse than that indicated. We'll just point you to this Joystiq article, since they've done all the heavy lifting. Apparently, staff members weren't paid this month, and everyone has been fired. That means that 38 studios will probably only continue to exist as an entity trying to acquire more funding (that will never arrive) until the state of Rhode Island takes possession of the studio's intellectual property and tries to sell it. Scott Jennings has other excellent commentary.