Interested in learning what's next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit Next. Learn more.


Australia is losing its last triple-A game studio.

2K Australia — the developer behind last year’s action role-playing game Borderlands: The Pre-Sequel — is shutting its doors. All staff will lose their jobs, according to a company source that spoke to Kotaku. This leaves no triple-A console developer working out of Australia, and it’s part of a bigger trend of major studio closures, including THQ shutting down in early 2013, having auctioned off its assets for $72 million. THQ’s Australian studio had already closed back in 2011.

With triple-A development costs increasing and mobile revenue predicted to overtake console revenue in 2015, this is a trend that’s likely to continue.

Kotaku reports that high operating costs were to blame for the closure, along with a failed move from Canberra to Melbourne, which was an attempt to bring in fresh talent.

Event

MetaBeat 2022

MetaBeat will bring together metaverse thought leaders to give guidance on how metaverse technology will transform the way all industries communicate and do business on October 3-4 in San Francisco, CA.

Register Here

While Australia doesn’t have any other triple-A console developers, it still has some major mobile studios, like Fruit Ninja creator Halfbrick and Real Racing developer Firemonkeys.

2K Games confirmed the closure, saying, “We have taken steps to begin the studio closure process for 2K Australia in order to better manage ongoing development costs while improving the working proximity of our creative teams. We are very grateful for the team’s valuable contributions to numerous 2K projects, and are working with affected staff to explore reassignment opportunities where possible.”

GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Learn more about membership.

Author
Topics