What's Happening?
Avalanche Studios, known for developing the Just Cause series, has announced significant layoffs and the closure of its Liverpool office. This decision comes shortly after Xbox canceled the development of Contraband, an open-world co-op game that Avalanche had been working on since 2021. The company cited 'current challenges to our business and the industry' as the reason for these changes, although the timing suggests a connection to the game's cancellation. The layoffs will affect staff in Malmo and Stockholm as well, with a significant percentage of the workforce impacted. This move follows previous closures of Avalanche's New York and Montreal studios, which resulted in the loss of around 50 jobs.
Why It's Important?
The layoffs and studio closure at Avalanche Studios highlight the broader challenges facing the gaming industry, particularly for developers reliant on large-scale projects funded by major platforms like Xbox. The cancellation of Contraband underscores the risks associated with long-term game development projects, especially when they are tied to the strategic decisions of larger companies. This situation may lead to increased caution among developers when entering partnerships with major gaming platforms. The affected employees face job insecurity, and the industry may see a shift in how studios approach project funding and development timelines.
What's Next?
Avalanche Studios has initiated a collective consultation process as required by UK law, which will determine the final outcome for the Liverpool staff. The company has expressed its commitment to supporting affected employees during this transition. Moving forward, Avalanche will need to reassess its project pipeline and possibly seek new partnerships or funding sources to stabilize its operations. The gaming community and industry stakeholders will be watching closely to see how Avalanche navigates these challenges and what future projects, if any, will emerge from the studio.
