Hampered by industry cutbacks and a struggling economy, Australia’s biggest video game development studio Krome was forced to lay off an undisclosed number of employees cross its Brisbane, Adelaide, and Melbourne locations last November. But it seems the studio is not out of the woods just yet, with the company today confirming to GameSpot AU that more staff members have been let go this week.
Word of Krome cuts first surfaced yesterday when AusGamers reported rumours that the developer had laid off more than 50 employees this week. AusGamers also reported that the studio has lost the license to develop the upcoming Star Wars: The Force Unleashed II for the Wii because of the poor review scores for some of the studio's other titles. Krome's previous games include Ty the Tasmanian Tiger, Star Wars: The Force Unleashed, Star Wars The Clone Wars: Republic Heroes, the upcoming Blade Kitten, and the recently released Games Room for Xbox Live.
Today, Krome representatives confirmed directly to GameSpot AU that it had suffered job cuts but refused to comment on whether they had or had not lost the license to Star Wars: The Force Unleashed 2.
"We regret to confirm an unspecified number of positions have been eliminated today at Krome," the studio said in a statement to GameSpot AU. "The industry worldwide is facing new challenges, and Krome is not immune to the effects of this. Beyond that, we cannot make a comment."
Stay tuned to GameSpot AU for more information as it comes to hand.