Avalanche Studios, known for the Just Cause series, has recently closed its Liverpool studio, resulting in the loss of 31 jobs. This decision follows the cancellation of Contraband, a co-op smuggler game under development with Microsoft.
Earlier reports suggested that development on Contraband was merely paused. However, recent events indicate that the future of the game is now uncertain as layoffs at Avalanche have solidified its closure. The studio confirmed this development on its official site and highlighted that a collective consultation process was initiated in September, in accordance with UK labor laws, prior to executing the layoffs.
Despite the closure, Avalanche assured that the core of the company remains operational. They expressed gratitude for the contributions of the departing staff, emphasizing the impact these individuals had on various projects. "Our focus remains on supporting the staff through this transition and to carry on making great games for our player communities," the studio stated.
Contraband was first introduced during an Xbox E3 presentation in 2021, where it was presented as a AAA title set in the fictional country of Bayan during the 1970s. It is not the only game to face cancellation; Microsoft has also halted development on other titles, including Rare’s Everwild and the Perfect Dark reboot, amidst a significant workforce reduction that affected around 9,000 employees, including those at Xbox.
Recent reports suggest that Microsoft’s struggle to maintain its position in the gaming industry may be attributed to lofty profit expectations, prompting multiple staff layoffs. Overall, Avalanche’s closure is a part of broader challenges facing the gaming division under the current corporate strategy.
