Aussie games industry goes into limbo

The Australian software industry is reeling after its largest games developer has shut its doors.

Brisbane-based development house Krome Studios has closed its doors and all the staff have apparently cleaned out their desks and collected their pink slips.

According to IGN some developers might be rehired to finish off some existing work but for the last year it has been flopping about like a goldfish which has decided to see the world.

Last year it got rid of 50 employees and a further 60 in November.

Word on the street is that Krome putting too many resources into establishing new IPs that weren’t successful. It might have been able to cope if its titles based on established licenses where not also underperforming.

Krome was pretty big in OZ. It was formed in 1999, and recently released Blade Kitten, and the PS2 and Wii versions of Star Wars: The Force Unleashed. It was also involved with the popular Ty the Tasmanian Tiger franchise.

But the industry has suffered against stiff competition and a shrinking demand for games software. Australia is not the cheapest place in the world to make Computer games at the best of times and if you don’t have a hit you are doomed no matter how big you are.