Australian development outfit Krome has yet to shake the economic challenges that first hit it a year ago, and now its Adelaide studio is facing complete closure.

Once hailed as one of the largest development groups in the world, last November Krome was forced make cuts into its 300-strong workforce. Five months later, Krome confirmed that more staff (allegedly 50) had been let go from its Brisbane studio.

Now, according to news site Gamespot, the developer has put its Adelaide studio and staff on a four-week notice period.

"As we have seen by other recent announcements, the games industry is still going through economic challenges which Krome is not immune from,” read a company statement.

“These times are challenging and as a result, we have put some of our staff on notice pending the outcome of a number of upcoming projects.”

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Krome added it is “firmly committed” to the future of its three studios.