The Novato studio was spun off from Irrational Games (briefly known as 2K Boston/2K Australia) in 2007, after the release of BioShock. The Canberra studio, 2K Australia, was originally part of Irrational Games. It joined 2K Marin in 2010, upon the announcement of its new XCOM game, became 2K Australia again in 2011 and used heavily by Irrational Games for development work for BioShock Infinite.
In October 2013 the studio underwent staff reductions. According to an anonymous source, the only employees retaining their jobs are to be folded into the new Bay Area 2K Studio led by Rod Fergusson. Fergusson announced he had left the studio to work with Microsoft on a new Gears of War game, leaving the state of his former San Francisco studio unknown. With the closure of Irrational Games, 2K CEO Strauss Zelnick has said that 2K Marin will be taking control over the BioShock series.