Krome Studios has confirmed it has eliminated an unspecified number of positions at the Brisbane, Melbourne and Adelaide-based development studio amid rumours it has lost a major game deal with LucasArts.
Yesterday, AusGamers reported a rumour that Krome had shed "more than 50" of its staff after losing out on a deal with LucasArts to develop the Wii version of Star Wars: The Force Unleashed 2.
Today, Krome has confirmed the cuts, telling Gamespot:
"We regret to confirm an unspecified number of positions have been eliminated today at Krome. The industry worldwide is facing new challenges and Krome is not immune to the effects of this. Beyond that, we cannot make a comment."
In November, Krome's Robert Walsh admitted the studio had laid off "an undisclosed number" of workers, rumoured to be between 20 and 30 people. Krome continues to work on Blade Kitten for release on PlayStation Network and Microsoft's classic arcade Game Room.
Krome confirms staff cuts [Gamespot]