What's Happening?
Avalanche Studios Group, known for developing popular games such as Just Cause and Mad Max, has announced the closure of its Liverpool studio. The decision comes as part of a broader restructuring effort due to current business and industry challenges. The company will also reduce its workforce at its Malmö and Stockholm studios. The Liverpool studio, opened in 2020, will undergo a collective consultation process as required by UK law, impacting all employees there. The company has not disclosed the number of employees affected but has stated its commitment to supporting them during this transition. This move follows the recent halt in development of the game Contraband, which was being developed in collaboration with Microsoft.
Why It's Important?
The closure of Avalanche Studios Group's Liverpool studio and the layoffs in its Swedish offices highlight the ongoing difficulties faced by the gaming industry, including rising development costs and intense competition from major titles like Fortnite and GTA Online. This restructuring could impact the company's ability to produce new games and maintain its workforce, affecting its long-term viability. The decision also reflects broader industry trends where studios are forced to adapt to financial pressures and shifting market demands. Employees in the affected locations face uncertainty, and the industry may see further consolidation as companies strive to remain competitive.
What's Next?
Avalanche Studios Group will initiate a collective consultation process for the Liverpool studio closure, as required by UK law. The company will focus on restructuring its teams in Malmö and Stockholm to better align with its current game development needs. Stakeholders, including employees and industry partners, will be closely monitoring the situation to assess the impact on future projects and collaborations. The gaming community may also react to these changes, potentially influencing consumer perceptions and market dynamics.
