Australian developer Krome Studios, Australia’s largest developer, has confirmed to GamesIndustry.biz that it has been forced to axe more staff due to economic pressure. The studio is one of the largest independents in the world, employing more than 400 staff across three locations in Brisbane, Adelaide and Melbourne.
"We regret to confirm an unspecified number of positions have been eliminated today at Krome," said a spokesperson for the company. "The industry worldwide is facing new challenges and Krome is not immune to the effects of this. Beyond that, we cannot make a comment."
Although it was unwilling to offer further details, reports from IGN and Ausgamers put the number of layoffs between 30 and 50 employees.
The company has recently completed work on Microsoft’s Xbox LIVE Games Room, and is taking advantage of Havok’s new cost-saving independent developer program. Aimed at smaller studios, the program will help them to minimise the risk and costs associated with internal creation of tools.
"This program gives our business the flexibility to innovate our game development processes and strategies," added Robert Walsh, CEO of Krome. "Krome has the unique opportunity to develop multiple prototypes using Havok’s world class products and then, if required, to licence those technologies from Havok.
The company had already let a number of staff go at the end of last year, blaming declining game sales across the industry.
"Regrettably, an undisclosed number of employees across each of Krome’s three studio locations were informed they would be let go," Walsh said in a statement to Gamespot.
"With declining game sales, the industry is really feeling the effects of the struggling economy. In spite of industry-wide cutbacks and Krome’s need to reduce costs, we’ve worked really hard to minimise the impact on our staff.
"These cuts, while incredibly difficult as they affect the coworkers we consider friends, are necessary as we position Krome for the future. We’re also actively pursuing several business opportunities which, if secured, will enable Krome to reemploy some of the staff given notice."
Krome was founded in 1999 and has since worked with a number of publishers on titles such as Star Wars: The Force Unleashed, Viva Pinata: Party Animals and the Ty the Tasmanian Tiger series.
Credit: Matt Martin | Editor, GamesIndustry.biz
During these tough economic times, this is the last thing you want to read about. Good luck to the people who lost their jobs and hope they could rebound quickly.