Avalanche Studios, known for the Just Cause series, has announced significant layoffs and the closure of its UK office in Liverpool just a month after the cancellation of its co-op open-world game, Contraband. The layoffs will affect employees in both Malmo and Stockholm, indicating larger struggles within the studio as it tries to adapt to "current challenges to our business and the industry." The studio was already reeling from the recent shutdowns of its New York and Montreal locations and now faces uncertainty about its future after the lack of new project announcements.

What led to the closure of Avalanche's Liverpool studio?

The closure of Avalanche's Liverpool studio is primarily linked to the recent cancellation of Contraband by Xbox, which has created significant operational challenges for the company. It follows a series of layoffs within the gaming industry overall, further compounding the difficulties faced by Avalanche Studios.

Contraband, a long-awaited title, was first revealed during the Xbox E3 2021 showcase, and fans were eager to explore its promise of an expansive open-world experience. Its cancellation not only ended a potential hit for Avalanche but also highlighted the broader struggles within the gaming industry amidst economic shifts and corporate restructuring. The studio now hopes to regroup and focus on future projects while providing support for its affected employees during this transition.