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Krome shutting down studios?

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

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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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