According to both Gamasutra and Kotaku AU, SEGA is closing down the Australian arm of its development studio later this year.
After last year’s staff layoffs, this closure may come as no surprise to some watching the market closely. While the media release doesn’t say how many employees will be affected, this recent closure adds to the worrying trend of Australian development houses. Team Bondi closed its doors in 2011 after the controversy that struck with the Triple-A game, “L.A. Noire.”
Not only this, but this is the second development house to be killed off by their parent company this week.
Disney representatives announced that it would be shifting LucasArts to a new licensing format instead of a internal development studio. LucasArts were responsible for Psychonauts and Grim Fandango and had been working on Star Wars: 1313, which had great interest from gamers.
Whatever games these development house had in store for us will either be sold to other developers or left to linger in the world of “what if?”