Slecht nieuws voor het Australische Krome Studios, want volgens de geruchten moet deze nu haar deuren sluiten. Deze developers die pas geleden nog de titel Blade Kitten uitbracht en bekend is geworden met Ty the Tasmanian Tiger en Xbox 360 Game Room zal aanstaande maandag ophouden met bestaan.

While attendees enjoy the second and final day of the Game Connect: Asia Pacific conference held on the Gold Coast which aims to inspire local developers in these tough times, news is flooding out that just nearby, a major Brisbane based studio is on the verge of collapse.

More troubling and credible reports concerning Krome Studios are currently spilling onto Twitter as well as into our comments areas, and if these new details along with the additional reports received yesterday relating to the Embryo agreement are true, then there is considerable cause for concern for what was once Australia's largest game development studio.

The rumours began with more drastic job cuts today (hitting both the remaining Melbourne and Brisbane studio), but it seems to be a lot more serious for the studio than that.

The current report is that Krome Studios have let go of all remaining staff, including those in their base studio in Brisbane, and will be closing their doors on Monday. Some staff will be rehired as contractors to finish some remaining work.

The latest developments at Krome Studios ends a tumultuous twelve month period for the company which had started to dwindle down once the global financial crisis hit just after having reached a milestone of 400 employees.

Beginning with the axing of 60 employees in November 2009, the company shed an additional 50 employees in April this year. Four months later in August, an undisclosed but estimated 100+ employees were further let go from Krome, marking the end for the Adelaide branch of Krome Studios.