The CEO of crippled Aussie developer Krome Studios, Robert Walsh has finally spoken out over rumours that the studio has closed its doors for good.

Walsh explained to IGN that the studio, while have been forced to make major cutbacks in staff was still in operation and working on a small number of projects.

He said: "We still have current contracts we are working on, plus some more on the horizon. Realistically, we have at least 40 [staff] doing work on projects."

Walsh added: "We have another project that comes up in a couple of weeks, which could [require] another 40 people. So [our staff count] is going to be anywhere between 30 and 100. It's pretty much just a smaller version of what [Krome] was."

By Ewan Aiton