Update:

Here's the official word on the closure, provided to us by 2K. Our thoughts go out to those affected.

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. 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.Original story is below.

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2K's Australian studio is reportedly shutting its doors. Kotaku Australia reports via a source that the Canberra-based developer will be disbanding, leaving all its employees without a job.According to Kotaku, an official statement is incoming.2K Australia is Australia's only remaining AAA studio. Previously part of Irrational Games, it's best known for its work on the BioShock series. Its most recent game was the well-received Borderlands: The Pre-Sequel We will update this story as more information becomes available.

Lucy O'Brien is Entertainment Editor at IGN’s AU office. Follow her ramblings on Twitter.