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.
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.