The report emerged from local industry website Tsumea.com hints at the drastic measures for a development house that has been struggling to keep its head above water in recent times.
More troubling and credible reports concerning Krome Studios are currently spilling onto Twitter as well as into our comments areas, and if these new details are true with the additional reports received yesterday relating to the Embryo agreement, there is considerable cause for concern for what was once Australia's largest game development studio.
The rumours began with more drastic job cuts today (hitting both the remaining Melbourne and Brisbane studio), but it seems to be a lot more serious than that.
The report is that Krome Studios have let go of all remaining staff, including those in their base studio in Brisbane, and will be closing their doors on Monday. Some staff will be rehired as contractors to finish some remaining work.
Whether that 'remaining work' includes the troubled Blade Kitten project or not is unclear at this stage.