We’ve been told by sources directly affected by the cuts that roughly 50 developers (a sizeable number of Krome’s total workforce) were let go from the company’s Adelaide, Brisbane and Melbourne branches last Thursday and Friday. The main culprits? A super-high Aussie dollar (making US-backed development expensive) and what’s described as a “lack of contracts”.

Krome CEO Robert Walsh put a more official slant on the causes in the following statement, sent to GameSpot:

Regrettably, an undisclosed number of employees across each of Krome’s three studio locations were informed they would be let go.

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 also worked on the PS2 and Wii versions of the latest Transformers game, and were the creators of the last generation’s Ty: The Tasmanian Tiger series.

Speaking to Gamespot, Walsh said an “undisclosed number” of its employees had been let go, but suggested that potential publishing deals may allow those let go to return.

“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 most recently shipped Star Wars The Clone Wars: Republic Heroes for LucasArts, but outside of pet project Blade Kitten (pictured) the studio has not announced any other games currently in development.

Aussie studio Krome cuts staff [Gamespot]

Below are several key excerpts from the letter Robert received from the minister. You can also download a scan of the entire letter via this link.

You may be aware that there was talk of the Standing Committee of Attorneys-General releasing a discussion paper on [the introduction of an R18+ classification for games]. I have been awaiting the release of this paper… Alas, the paper has not yet been released and, despite my inquiring, I do not know when it will be available. I want the discussion paper released as soon as possible and have done nothing to impede its release.

Although some members are advocates of this classification, I believe other Attorneys-General, like me, reject it. Other Attorneys-General who are opposed to introducing an R18+ classification for computer games are content to let me be the lightening (sic) rod for the gamers.

I am well aware that many game players are adults… However, it is important you do not confuse the classification rating of a game with the game’s sophistication, or the challenge or interest to the player… It does not follow that a game is more interesting to an adult simply because it contains extreme violence, explicit sexual material or highly offensive language. Indeed, with all the effort and money that goes into game development, coupled with the effects and graphics now available, there is no need to introduce these extreme elements. I am bafffled and worried about why proponents of R18+ games are putting up their hands and saying ‘Give us more cruel sex and extreme violence!’

‘Interactive Australia 2007′, a report prepared by Bond University for the Interactive Entertainment Association of Australia, surveyed 1,606 Australian households randomly. The report found “79% of Australian households have a device for computer and video games”. Further, 62% of Australians in these gaming households “say the classification of a game has no influence on their buying decision”.

Given this data, I cannot fathom what State-enforced safeguards could exist to prevent R18+ games being bought by households with children and how children can be stopped from using these games once the games are in the home. If adult gamers are so keen to have R18+ games, I expect children would be just as keen.

Classification of electronic games is very different from the classification of film. In cinemas, the age of movie-goers can be regulated… Rising game and console sales make it clear that this is a growing area that needs careful regulation, even more so than cinemas and private D.V.D. hire and purchase. Access to electronic games, once in the home, cannot be policed and therefore the games are easily accesible to children.

What the present law does is keep the most extreme material off the shelves. It is true that this restricts adult liberty to a small degree, however, I am prepared to accept this infringement in the circumstances.

I am concerned about the level of violence in society and the widespread acceptance of simulated violence as a form of entertainment. I am particularly concerned about the impact of this extreme content on children and vulnerable adults.

I believe the repeated act of killing a computer-generated person or creature desensitises them to violence. To my mind, a child being able to watch depraved sex and extreme violence in a movie is damaging to the child, but the child’s participating (sic) in depraved sex and extreme violence in a computer game is worse.

Game-houses are always free to adapt games that would otherwise be R.C. [Refused Classification] and modify the game content to be in line with the M.A.15+ classification… I do not accept that this destroys the artistic integrity of the game – excusing gore and depraved sex as art is an immature argument.

Contrarily, it has been suggested that games that would otherwise be classified R18+ are instead slipping through as M.A.15+ and becoming accessible to children. This argument does not support an R18+ classification for games. There may be games that some people consider too violent for the M.A.15+ classification but the solution is not to create a classification that would permit even more violent games in Australia. M.A.15+ games are restricted to children over 15 and if younger children access these games it further justifies complete protection from R18+ games. It is up to parents and responsible adults to ensure a game is appropriate for a minor whatever age he or she is. It is up to members of the Classification Board to apply the Guidelines correctly and not to try to defeat the Guidelines because they disagree with the outcome of the actions of elected officials in a democratic rule-of-law society.

Please read the full letter now. I’d like to hear how you would respond to Mr Atkinson. Where are the weaknesses in his reply? Has he contradicted himself? What is the best way for the pro-R18+ movement to counter Mr Atkinson’s argument? Or perhaps you feel he actually makes some very valid points and, if so, which ones?

Sensible comments only, please.

Former Krome employees have apparently contacted Australian Gamer to let them know about the layoffs. Further redundancies have apparently also taken place at Krome’s Melbourne office as well.

Krome is Australia’s largest game development studio and creator of the Ty the Tasmanian Tiger franchise. Recent titles include Star Wars The Clone Wars: Republic Heroes (pictured), Scene It? Box Office Smash, the Wii and PS2 versions of Transformers: Revenge of the Fallen and the PS2 and PSP versions Star Wars: The Force Unleashed. Krome is currently working on Blade Kitten, an action game that has yet to find a publisher.

It’s been a tough year for Aussie game development. First, Pandemic Brisbane was shut down after the failure of its Batman project then Melbourne’s Transmission Games suffered severe cuts ahead of the studio’s eventual closure last month. Now it’s Krome’s turn. We hope everyone affected by the layoffs lands on their feet as quickly as possible.

Friday the 13th hits Krome Studios [Australian Gamer]

M.A.G. – or Massive Action Game – is a 256-player shooter for the PS3. With player numbers like that, it’s gonna need some serious beta testing, especially in Australia. So hop over to the PlayStation website to register and do your bit for the cause.

Load up for the MAG Beta [PlayStation.com.au]

Head on over to the Australian Golden Joystick Awards site to cast your vote for the best Wii, Xbox 360 and PS3 games of the year, as well as the best retailer in the country. (No PC award? PC gamers lose again!)

The awards run from Sept 2008 to Sept 2009, which accounts for the inclusion of Fallout 3, Gears of War 2 and LittleBigPlanet among the nominees. Fallout 3 actually took out the overall prize at the UK awards, as we reported recently.

I cast my votes just now, for De Blob, Batman, Batman and JB Hi-Fi. Where did your votes go?

It features a very limited custom-built replica of the Scarborough Fair, Bayonetta’s beloved pistol which she has strapped to her hands and feet. The aptly-named Climax Edition also comes in premium slipcase packaging and features the Bayonetta game, as well as a 36-page hardcover art book and CD soundtrack featuring music from the video game.

Bayonetta releases on January 7 for Xbox 360 and PS3.

On Friday, David Doe kicked off his campaign against Atkinson at Adelaide’s Rundle Mall, securing the signatures required to officially register his political party. Doe says his aim is “to exert pressure on Atkinson, currently the only Attorney General voting ‘no’ against the introduction of an R18+ classification rating for videogames in Australia.”

Atkinson told News.com.au that he “welcomed Mr Doe’s challenge,” saying:

“The voters of Croydon will now be asked directly whether they want interactive games in which gamers score points by raping a mother and daughter, blowing themselves up, torturing human figures… killing people and taking drugs to improve their sporting prowess.”

Later, Atkinson responded to several readers’ comments on the same article, claiming that neither his nor the ALP’s defeat at the 2010 state election would not benefit the introduction of an R18+ classification.

“Former Liberal Attorney-General Phillip Ruddock supported my opposition to an R 18+ Classification for interactive games at a time when most Labor Attorneys-General wanted to introduce one and he sought the endorsement of Cabinet for his position,” Atkinson wrote. “Should I stop being Attorney-General, the opposition would, I predict, be taken up by the W.A. Attorney-General (Liberal) and at least two other Attorneys-General (Labor). Moreover, many Liberals in the State Parliament and at least one Liberal candidate in the forthcoming State election support my stand.”

Doe told Kotaku that he was “a little saddened” by Atkinson’s response to his challenge. However, he remains undaunted in the face of the Attorney-General’s obvious advantages and has vowed to take his campaign beyond the electorate of Croydon.

“He is hugely popular within his electorate,” says Doe, “and he will have not only superior brand recognition, but also a well-oiled political machine running his campaign.

“Over the weekend it became clear that we will need to run a candidate for the Legislative Council, so that gamers who do not live in the Croydon electorate will also be able to show their support by voting for our candidate in the upper house. And of course, we will be working on our preferences with the other major parties in the coming months, as well as providing some quick links to people’s Federal representatives so they can voice their concern at the requirement of unanimity between Attorneys-General to implement an R18+ classification rating with a view to getting that piece of legislation amended to only require a majority vote of Attorneys-General.

“And in amongst all that,” jokes Doe, “I’m going to try to continue to paint the inside of my house, and try to get my season’s batting average above zero, and my bowling average below sixty.”

The highlights will be at Liverpool Westfield in Sydney and Knox City Shopping Centre in Melbourne, the two stores designated to host what EB predict will be the biggest gaming launch ever in Australia.

“EB Games are extremely excited to be the premier launch destination of Call of Duty: Modern Warfare 2. We look forward to being an integral part of this historic event as this will be the biggest gaming launch in Australian history,” says Shane Stockwell, EB Games merchandising director.

“We are expecting tens of thousands of people to come out at midnight to get this game, it will definitely be a sight to see and I would encourage everyone to come along and be part of these very special events right across Australia.”

Those heading down to the two official midnight launches will be in the running to win a bunch of prizes, too, including:

* Dress in camo and get your head shaved for your chance to win a Modern Warfare 2 Limited Edition Xbox 360 console
* Free cans of V energy drink
* Energizer Torches
* Plus the chance to get a free upgrade from Standard Edition to Hardened Edition

Oh, and if you’re going, don’t forget to take some pics and send them to us.

The Interactive Games and Entertainment Association (iGEA) has revealed that for the nine months up to the end of September, sales are up 8.3% this year over last, according to official GfK figures. In 2008, Australian’s spent nearly $2 billion on videogame hardware, software and accessories. It looks like we’re well on track to surpass that figure this time around.

The majority of the growth has come through console hardware (up 10%), while software has accounted for a 5% increase.

“The rise of family entertainment as a genre continues to underpin much of the industry’s growth,” says Ron Curry, CEO of the Interactive Games and Entertainment Association.

“Christmas will see iGEA members delivering a number of highly anticipated games, along with some surprises, which should see sales surpass the records set in 2008.

“Australia’s interactive games industry continues to see healthy growth now that video and computer gaming has become as mainstream in popularity, as watching television or surfing the net.”

So, how about you? Have you found yourself spending more on games this year than last?