38 Studios (after not meeting payroll) has apparently taken the next step into what could be a short road to the end of the developer. Despite the release of a strong trailer showing the progress on the studio’s latest project known as Copernicus, the studio has apparently not be able to find any additional funding to keep things going.

While sources tell us that Curt Schilling as well as others continue to seek additional outside funding, the step of laying off employees was apparently necessary to keep the studio from being in a deeper hole than it is already in. Sources tell us that in addition to the employees at 38 Studios being let go, the 38 Studio’s own Big Huge Games has also apparently been closed down, with employees handed their walking papers.

According to a leaked internal memo that was apparently released to employees of 38 Studios and Big Huge Games, the memo blames what it calls “an economic downturn,” and states that, “…to avoid further losses and possible retrenchment, the Company has decided a company-wide layoff is necessary.” In addition, the memo makes sure the staff knows that things are pretty grim and that the likelihood of a miracle is remote:  “These layoffs are non-voluntary and non-disciplinary. This is your official notice of layoff, effective today, Thursday, May 24th, 2012.”

We have been trying to find out what is next, beyond the attempts to seek additional funding to keep going. What’s next is anyone’s guess, and no one is talking. According to one source claiming to have direct knowledge, “It is difficult to say what’s next, but it is hard to accept how far we have come only to see it end like this. Without some sort of a miracle, it could be the end of the road without seeing Copernicus getting released.”

According to those we have spoken with, the value of the Kingdoms of Amalur IP could be as much as $20 million; but it is largely unknown what the value of the Project Copernicus IP might be, since the only real knowledge we have of it is the trailer that was just recently released.

If you have direct knowledge of the 38 Studios and/or Big Huge Games situation and want to get the word out about what is happening, Email us and let us know what is going on; and we will make sure that the word gets out. In the meantime, our best wishes go out to those employees who find themselves without employment.