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. This decision follows the cancellation of the Xbox exclusive project, Contraband, by Microsoft in August. The restructuring will also affect the company's Swedish studios in Malmö and Stockholm, where workforce reductions and team restructures are planned. The company cited 'current challenges to our business and the industry' 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 within the gaming industry, particularly for developers reliant on large-scale projects. The cancellation of Contraband, alongside other projects like Perfect Dark and Everwild, underscores the volatility in project funding and development within major tech companies like Microsoft. This situation may lead to increased scrutiny on project viability and funding strategies, affecting developers and potentially leading to more conservative approaches in game development.
What's Next?
Avalanche Studios will undergo a collective consultation process as required by UK law, impacting all employees in the Liverpool studio. The company will also focus on restructuring its teams in Sweden to align with current project needs. The gaming community and industry stakeholders will likely monitor how Avalanche Studios navigates these changes and whether it can maintain its commitment to producing high-quality games amid these challenges.
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