Krome Studios closed, reports say

Rumored last week, the closure of Xbox Live Arcade’s Game Room developer Krome Studios appears a certainty. IGN has reportedly received confirmation of the fact, which would mean that Australia’s biggest game developer — and one of the world’s leading independent ones — is no more.

All the staff has allegedly been let go as of last Friday, October 15th, with the possibility of some workers being rehired to finish off projects.

According to a source, the culprit in the studio’s demise was too much focus on new, unsuccessful intellectual properties and not enough income from licensed properties.

Next to Game Room, Krome has a healthy list of titles under its belt: Scene it? Box Office Smash for Xbox 360, Star Wars: The Force Unleashed for the PSP/PS2/Wii, Transformers: Revenge of the Fallen for the PS2/Wii, and many more.

An official statement on the closure is yet to be released.