One of Australia's most successful game developers has closed its Canberra operations with management citing development costs.

A spokesman for 2K Australia, the developer of Borderlands: The Pre-Sequel, confirmed the closure on Thursday afternoon. The company was the last big games developer in Australia.

Shutting down: 2K Australia, which developed Borderlands, the Pre-Sequel, is closing down. Credit:2K Games

"We can confirm we have taken steps to begin the studio closure process for 2K Australia in order to better manage ongoing development costs while improving the working proximity of our creative teams," the spokesman said.

"We are very grateful for the team's valuable contributions to numerous 2K projects, and are working with affected staff to explore reassignment opportunities where possible."