2K Australia initially began as Irrational Canberra, a sister studio to Irrational Games in Boston, the second studio opened by Irrational Games' co-founder Jonathan Chey in 1999. Chey a native Australian, stayed in Australia was in charge of the newly minted studio. Irrational Canberra's first developed title was the critically and commercially successful Freedom Force (2002). The two studios would continue to work collaboratively through a number of titles including Tribes: Vengeance, SWAT 4 and Freedom Force vs The Third Reich.
Take Two Acquisition
On January 9, 2006, Irrational Games was bought by Take Two Interactive and would publish the studio's most successful game to date Bioshock in 2007. On August 10, 2007, soon after Bioshock went gold, Irrational Games adopted the subsidiary 2K Games moniker. Irrational Games became 2K Boston and Irrational Canberra became 2K Australia.
On April 14, 2010, the usage of the 2K Australia name was dropped and the studio itself has become a sister studio to the 2K Marin studio, also using their label instead. Announced on the same day was the co-development of XCOM, a First Person Shooter sequel reboot to the strategy classic X-Com with 2K Marin located in Novato, CA.
In November 2011, the studio was renamed to yet again 2k Australia and it was announced they are helping out with development duties on Irrational's BioShock Infinite.
On April 16th 2015 a source within 2K Australia revealed to Kotaku Australia that the studio was shutting down. 2K later confirmed the story and gave "to better manage ongoing development costs while improving the working proximity of our creative teams" as a reason.