LA Noire developer placed in administration

Posted by Emma Woollacott

Team Bondi - the games developer behind LA Noire - has gone into administration, after a year of battling with staff.

According to a report from the Australian Securities & Investments Commission, an administrator was appointed on Tuesday. The studio's Sydney office is being advertized for lease.

Team Bondi has been fighting for survival for some time. It's been the subject of lawsuits from some of its staff, who claim that the company forced them into unpaid overtime and failed to credit many for their work.

It's faced high development costs for LA Noire - six years in the making - particularly with regard to the facial analysis software intrinsic to the game, developed by sister company Depth Analysis. LA Noire's the only game it's produced.

On top of this, LA Noire publisher Rockstar games has said that it won't publish Team Bondi's next game, leaving Team Bondi stuck for a publisher.

Last month, rumors emerged that the company had sold its intellectual property and assets to Sydney-based multimedia production firm Kennedy Miller Mitchell, the company behind Happy Feet. Founder Brendan Mcnamara and other senior software developers have also moved to KMM, which is believed to be working on a Mad Max game.

Administration doesn't necessarily mean the company is doomed, but does mean it's essentially insolvent. The aim is to try and make payments to creditors, possibly through the sale of assets, if any remain.

A creditors' meeting is taking place in Sydney today.