38 Studios Breaks Promise, Leaves Ex-Employees With Two Mortgages

The massive meltdown of Kingdoms of Amalur: Reckoning's developer 38 studios might even be worse than originally thought.

The Verge is reporting that several employees who were let go from 38 studios this week are also now responsible for paying a second mortgage. According to more than one source executives at the company promised to sell the homes of several employees in an effort to have them move closer to the Rhode Island-based studio. However, a few months have passed and the employees are coming to find out that their home was never sold and are now receiving notices from banks wondering why mortgages haven't been paid.

The sad part about all of this is everyone was jazzed to see Schilling start up a company and conceive a deep RPG, and Kingdoms of Amalur: Reckoning wasn't half bad. For the studio to collapse as quickly as it did and have the members of the team not only be left unpaid for almost a month but to have another home mortgage to worry about is the last thing this industry needs.

If this information is accurate, this might be the worst gaming studio break-up in history, and going well beyond what happened with Infinity Ward in 2009.