38 Studios, the developer behind moderate PC and console hit Kingdoms of Amalur: Reckoning, is reported to have been unable to pay its staff this week. The news comes as the studio struggles to meet loan repayments.

A Rhode Island Economic Development Corporation spokesperson - which funded the studio - confirmed the news to local media WRPI.

38 Studios is working to meet an overdue payment of $1.125 million to RIEDC.

Bond documents reveal the studio is home to 379 full time employees, but it's not clear how many have been affected. A Joystiq source close to the studio says that all temp staff and contractors have been released.

The RIEDC is currently thinking over its options about whether to help keep 38 Studios solvent, with a further meeting planned for Monday.