Krome shutting down studios?

Unconfirmed reports reveal Krome's Adelaide studio has been shut down; drastic staff cuts made at Melbourne and Brisbane studios.

Source: Aussie game developer site Tsumea.

What we heard: The global economic downturn of recent years hit Krome hard in November last year. Citing industry cutbacks and financial pressures, Krome laid off an undisclosed number of staff across its three studios in Brisbane, Adelaide, and Melbourne, mirroring recent layoffs made by Melbourne-based studio Transmission Games the previous month. In April this year, Krome confirmed more staff cuts amidst rumours that the studio had lost the licence to develop Star Wars: The Force Unleashed II for the Wii, apparently due to poor review scores for the studio's other titles (which include Star Wars: The Force Unleashed for the Wii, PS2, and PSP; The Legend of Spyro: The Eternal Night for the Wii and PS2; Viva Pinata: Party Animals; and the Ty the Tasmanian Tiger series, which has sold more than 2 million copies).

Now, citing Twitter posts made by Aussie developers Robert Dowling and Tony Albrecht, industry site Tsumea is reporting that Krome has shut down its Adelaide studio and has laid off half the staff at its Melbourne studio, with further cuts at its Brisbane studio.

Dowling initially posted on Twitter that more than 60 employees had been laid off from Krome's Brisbane studio, which Albrecht later confirmed.

The official story: GameSpot AU has contacted Krome for an official comment, but the company has refused to make one at this stage, though it is likely the studio will release a statement soon.

Bogus or not bogus?: Looking very not bogus, although readers will have to wait until an official confirmation to see how extensive the layoffs have been. Stay tuned to GameSpot AU for further news as it comes in.

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Discussion

5 comments
AceBalls
AceBalls

One of the biggest problems we have in Oz is that most of our super talented artists go overseas, mainly because there is no proper support for them here. It has been going on for many years now and it is frustrating.

realone2005
realone2005

blade kitten is still being released and Game Room will still get support, sucks for those working at the studio.

AussieMonster
AussieMonster

Yeah it sucks but if they're not putting out quality games what other options do they have? Australia should have tax breaks like Canada so we can entice talented people from other countries and in turn teach locals the art of game making.

S2333
S2333

It is sad we are losing our local talent. It seems Australia will still have a strong mobile and handheld development though.

Nintendo_Man
Nintendo_Man moderator

It's looking like we are going to lose all our gaming studios. Very unfortunate that the boom in gaming sales in this country in the last 5 years isn't benefiting these studios.