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 workforce restructure affecting its Swedish studios as well. This decision follows the cancellation of the Xbox exclusive project, Contraband, by Microsoft in August. The company cited current business and industry challenges as reasons for the restructure, which will involve a collective consultation process in the UK and workforce reductions in Malmo and Stockholm. Despite these changes, Avalanche Studios remains committed to delivering quality games to its player communities.
Why It's Important?
The closure of Avalanche Studios' UK branch and the restructuring of its workforce highlight the ongoing challenges faced by the gaming industry, including project cancellations and layoffs. This development may impact the studio's ability to produce new games and maintain its current projects, affecting its employees and the gaming community. The cancellation of Contraband, along with other projects by Microsoft, underscores the volatile nature of game development and the influence of larger corporate decisions on smaller studios.
What's Next?
Avalanche Studios will initiate a collective consultation process in the UK, as required by law, to address the proposed studio closure. The company will also focus on restructuring its teams in Sweden to align with its current game development needs. Stakeholders, including employees and the gaming community, will be closely monitoring these changes and their impact on future game releases and studio operations.
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