Job postings for the studio, based in Marin in the San Francisco Bay area, said "some of the creators of the award-winning BioShock are starting up a new studio in the Bay Area." Reports indicate that some members of the 2K Australia studio who assisted 2K Boston (formerly Irrational) with the game will also be making the move to the new location.
Rumors posted on the Surfer Girl blog suggest the new studio came about under acrimonious circumstances, with some staffers reportedly dissatisfied with working conditions under BioShock Creative Director Ken Levine. "A good chunk of the BioShock team did not want to work with Ken ever again, and 2K definitely understood the sentiment and let them set up a new studio so they can make BioShock 2, leaving Ken with Project X," according to the site. "A good chunk of the other senior 2K Boston people who were sick of Ken but didn't move to San Francisco ended up scattering to other AAA developers instead. In Quincy, they're essentially rebuilding a team from almost scratch again." Further rumors claim that Project X is in fact a new Unreal Engine-powered entry in the X-Com series.