38 Studios lays off ENTIRE staff

Curt Schilling's 38 Studios laid off all of their employees today, a source familiar with the company tells Polygon.

The studio's financial turmoil first came to light earlier this month when they first missed and then later made a $1.125 million check to the state of Rhode Island.

Earlier this week Rhode Island governor Lincoln Chafee told reporters that they state's Economic Development Corporation had met with the studio to discuss payroll issues and layoffs.

Yesterday it came to light that among the layoffs were CEO Jen MacLean and senior VP of product development John Blakely. News also hit that the beleaguered studio might be missing out on state tax credits because it wasn't incorporated in Rhode Island.

Schilling's 38 Studios employed 379 people full-time as of March 15, according to loan documents cited by WPRI. The studio also owned Baltimore, MD-based Big Huge Games. The developer was working on a massively multiplayer online game titled Project Copernicus. It released Kingdoms of Amalur: Reckoning through publisher EA in February. The game reportedly sold 330,000 units in its first month on the market and was positively received by critics. Last month, 38 released a downloadable expansion pack for the game titled Teeth of Naros.

A missed loan payment to the state of kicked off the chain of events that cast light on a studio seemingly struggling to stay afloat.

38 Studios missed a $1.125 million loan payment to the Rhode Island Economic Development Corporation on May 1. During a series of meetings with the state, 38 Studios said they couldn't pay their employees and asked for more help from Rhode Island. The studio later delivered a payment to the state, but then said they couldn't cover the check. On May 18, they made good on their payment.

Meanwhile, the director of the Economic Development Corporation resigned.

Founded in 2006 in Massachusetts as Green Monster Games, 38 Studios was lured to Rhode Island in 2010 by a $75-million loan guarantee from the state. At the time state officials argued that the studio would bring hundreds of jobs and millions in tax revenue to the state.