As part of the restructure: Company Increases Emphasis on High Potential Categories; Reduces Focus on Kids and Movie-Based Licensed Titles for Consoles, THQ has shut down THQ Studio Australia and Blue Tounge Entertainment. The latter was behind the superb De Blob games.
Following the departure of Krome Studios, Australia's quickly running out of high profile studios. There's Firemint, and at least the future of that one is fairly secure thanks to its acquisition by EA. Then there's Team Bondi, but rumour is that they're about to step out of games development and into a broader multimedia corporation.
It's sad to see the Australian games industry struggle - but that's the downside to having such a strong Australian dollar, I guess.