Brisbane-based developer Sega Studios Australia will be closed down later this year.
As reported by Kotaku, Sega confirmed that the developer would be shut down, but did not go into any more specifics.
One of the last-remaining bastions of triple-A development in Australia, the studio, previously known as The Creative Assembly Australia, suffered 40 layoffs last February and was reduced to what was believed to be a small team.
At the time, Sega said the developer had been restructured to provide better agility in moving to the digital games market.
Sega Australia has worked on titles such as Medieval II: Total War, Stormrise and London 2012.