The company was founded in 1999 by Robert Walsh, who is the current CEO, Steve Stamatiadis, the creative director and John Passfield, the design director who left the company in 2005.
In 2007, Krome Studios places on the Develop 100 List at #94 being the only Australian game development studio to make the list this year after releasing The Legend of Spyro: A New Beginning the year before (2006). Three years later in 2010, Krome Studios was awarded the number 52 spot. Also in this year Krome Studios entered into a technology sharing agreement with Emergent Game Technologies.[3]
On 18 August 2010, it was reported that Krome had closed down their Adelaide studios and made significant staff cuts to their Melbourne and Brisbane offices, with as many as 100 staff let go. On 18 October 2010, it was reported that all remaining staff were let go;[4][5] however, on 1 November CEO Robert Walsh responded to an email sent by IGN stating that Krome Studios had not closed down.[6]
In July 2012, Krome Studios re-opened their website, which had remained dormant since their fall in 2010, and announced that Ty the Tasmanian Tiger would return. Since then Krome have developed two games based on Ty the Tasmanian Tiger for iOS and PC.[7] They have also developed several other titles for iOS, including Play Maker and Whole Wide World (for the child learning company, Fingerprint) and Toy Soldiers: Boot Camp, on Windows Phone 7.
In March 2016, Krome Studios re-released a PC remastered port of Ty the Tasmanian Tiger on Steam Early Access for the PC only, with increased resolution textures, and new lighting, shadow and reflection effects,[8] which left early access that December. They would go on to do the same thing with Bush Rescue and Night of the Quinkan in each following year respectively.