What is the story about?
What's Happening?
Avalanche Studios, known for the Just Cause series, is closing its UK studio as part of a broader workforce restructuring. This decision follows the cancellation of the Xbox exclusive game Contraband, which was announced in June 2021 but has seen little progress since. The restructuring will also affect the company's Swedish studios in Malmö and Stockholm, where workforce reductions are planned. The company cites current industry challenges as the reason for these changes, emphasizing a commitment to continue delivering quality games despite the downsizing.
Why It's Important?
The closure of Avalanche Studios' UK branch and the associated layoffs highlight ongoing challenges in the gaming industry, including project cancellations and financial pressures. This move reflects broader trends of consolidation and restructuring within the industry as companies adapt to changing market conditions. The cancellation of Contraband, alongside other projects, underscores the volatility and high stakes involved in game development. These changes could impact the studio's future projects and its ability to compete in a rapidly evolving market.
What's Next?
Avalanche Studios will proceed with the collective consultation process required by UK law, affecting all employees at the Liverpool studio. The company will also implement workforce reductions in its Swedish locations. Stakeholders, including employees and industry partners, will be closely monitoring the situation for further developments. The studio's future projects and strategic direction may be influenced by these changes, with potential implications for its competitive position in the gaming industry.
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