2K Australia, the developer of Borderlands: The Pre-Sequel and BioShock 2, has shut down.

The studio was the last large AAA publisher in Australia.

"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," said 2K in a statement.

"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."

The studio was considering a move to Melbourne to court fresh talent, claims Kotaku. That consideration caused high level members of the team to leave, and was a factor in the studio's subsequent shut down, reports the site.