The developer behind Game Room for the Xbox 360, Krome Studios, rumored to have shut down for good after trimming staff and workers at other Australian studios they owned during the year.
Reasons for the closure include horrible game sales after the initial debut and ad push by Microsoft with additional game packs doing less than 500 sales each. Microsoft also basically stopped supporting the thing and a catalog of arcade games mostly from the Atari Era or already available in game complications. Pricing and lack of other developers supporting the game application also considered a big reason.
No word from Microsoft if they will hand the game application to another studio to continue or if Microsoft will take over besides just creating game packs for sale.
http://kotaku.com/5664596/xbox-360-g...opers-to-close