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Xbox Game Room Developer Krome Hit with Layoffs

Posted April 22, 2010 by James Brightman

Last November, Australian developer Krome released a statement disclosing that the company had been going through a restructuring process, resulting in an unspecified number of cuts at each of its three studios. The developer, known for titles like Ty the Tasmanian TigerViva Pinata: Party Animals, The Legend of Spyro: A New Beginning, and more recently Star Wars: The Clone Wars - Republic Heroes, also helped build the Xbox Game Room for Microsoft. 

Now, reports from IGN in Australia and AusGamers both point to a new round of layoffs at the company. As many as 50 or more employees may have been canned, according to AusGamers. Krome has yet to offer an official response to the reports, but last November, the developer blamed the layoffs on a "struggling economy."

Prior to the November cuts, Krome had a workforce of around 400.

Update: Krome has now released a statement confirming layoffs, but once again the company would not get into specifics. "We regret to confirm an unspecified number of positions have been eliminated today at Krome," said the company in a statement to G4. "The industry worldwide is facing new challenges and Krome is not immune to the effects of this. Beyond that, we cannot make a comment."

James Brightman has been covering the games industry since 2003 and has been an avid gamer ever since the days of Atari and Intellivision. He was previously the EIC of GameDaily Biz.




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