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, by Microsoft in August. The studio announced that active development on Contraband has ceased while they evaluate the project's future. The restructuring will also affect Avalanche's Swedish studios in Malmö and Stockholm, where workforce reductions and team restructures are planned. The company cited current business and industry challenges as reasons for these changes. Despite these setbacks, 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 Swedish operations highlight the ongoing challenges faced by the gaming industry, particularly in the wake of project cancellations and broader economic pressures. This move could impact the local job market in Liverpool and affect the studio's ability to deliver future projects. The cancellation of Contraband, a highly anticipated co-op smuggling game, underscores the volatility in game development, where projects can be shelved despite significant investment. This situation reflects broader industry trends where companies are forced to adapt to changing market conditions and technological advancements.
What's Next?
Avalanche Studios will initiate a collective consultation process in the UK, as required by law, to manage the studio closure and workforce reductions. The company will likely focus on restructuring its remaining teams to align with current project needs. Stakeholders, including employees and industry partners, will be closely monitoring the situation to understand the long-term implications for Avalanche's game development capabilities. The gaming community may also react to the news, particularly fans of the Just Cause series and those anticipating Contraband.
