What's Happening?
Avalanche Studios, known for popular games like the Just Cause series, has announced the closure of its Liverpool studio and layoffs in Malmö and Stockholm. This decision follows the halting of work on their project 'Contraband' after Microsoft's significant layoffs earlier this year. The company cited current industry challenges as the reason for these changes. This marks the third studio closure for Avalanche in just over a year, following the shutdown of their Montreal and New York offices in 2024.
Why It's Important?
The closure of Avalanche's Liverpool studio highlights the ongoing struggles within the gaming industry, particularly following Microsoft's massive layoffs. This move affects not only the employees but also the broader gaming community anticipating new releases. The industry's volatility is underscored by the repeated closures and layoffs, which may impact future game development and innovation. Stakeholders, including employees and gamers, face uncertainty as companies restructure to adapt to market conditions.
What's Next?
Avalanche Studios plans to restructure its remaining teams in Malmö and Stockholm to better align with their current projects' needs. The company remains committed to delivering quality games despite these setbacks. The broader industry may see continued unionization efforts as employees seek stability and security in an unpredictable market. Future announcements from Avalanche will likely focus on their strategic direction and any new projects that may arise from this restructuring.
