The rumored closure of Brisbane-based Krome Studios, developer of Microsoft's Game Room, was confirmed today by IGN Australia. IGN's source says that all staff were laid off last Friday, though a skeleton crew may be rehired as contractors to finish outstanding work. It is not clear what this means for Game Room.
The closure comes after two rounds of layoffs for Krome, with 50 employees eliminated in April 2009 and then another 60 let go in November. IGN's source attributes Krome's financial problems primarily to console game projects that failed to perform to expectations, rather than Game Room (which has suffered from content delays). Krome had offices in Melbourne and Adelaide in addition to Brisbane.