Rumors are popping up everywhere that 38 Studios is shutting down for good. The creators of Kingdoms of Amalur: Reckoning might have possibly laid off their entire staff today. Previously, it was suggested that only Big Huge Games were having financial problems, but it seems that it has spread to the entire company.
Reports have indicated that the staff has not been paid since the end of April and that their health insurance runs out today at midnight. This adds to the list of bad news in the game industry, following right behind BioWare Austin. BioWare just announced the other day that several members who were working on Star Wars: The Old Republic were laid-off, including community manager, Stephen Reid.