Krome Studios building Xbox Game Room

Australian independent studio Krome has been revealed as the team behind the Xbox Live Game Room – Microsoft’s latest edition to its online service.

Microsoft’s new Game Room is a soon-to-be-launched online space that players can deck with virtual arcade cabinets playing retro titles.

Cabinets playing classic titles such as Centipede and Asteroids Deluxe can be purchased and brought into the Game Room for 240-400 Microsoft Points.

And as shown in the video below, the Game Room itself is a virtual space that NXE avatars can interact with in a manner reminiscent of Sony’s Home service. Xbox users will be able to design and decorate their own space and then invite friends over to view game collections and compete with one another.

Brisbane-headquartered outfit Krome is the studio that’s putting together the room itself as well as the avatar interactions.

The deal marks the second time Krome has worked with Microsoft avatars – the studio had previously developed the avatar-featured quiz title Scene It.

Money troubles recently saw Krome make a portion of its workforce redundant, thought the studio’s CEO Robert Walsh said that he was “actively pursuing several business opportunities which, if secured, will enable Krome to re-employ some of the staff given notice.”