Avalanche Studios, known for the Just Cause series, is closing its UK studio amid a workforce restructure, following the cancellation of its Xbox exclusive, Contraband. The company announced that it will be evaluating its projects and has decided to reduce its workforce across other locations in Sweden as well. The reasons behind the restructuring include challenges within the industry and the need for changes in staffing. Although Contraband's co-op smuggling gameplay was teased in 2021, the project has now been put on hold indefinitely after Microsoft canceled it due to unforeseen circumstances.

What does the closure of Avalanche Studios UK mean for the future of their games?

The closure raises concerns about the potential impact on future game releases from Avalanche Studios, particularly as they currently reassess their development projects and staffing. It underscores ongoing challenges within the gaming industry and could lead to delays or cancellations of upcoming titles.

Contraband was unveiled during the Xbox and Bethesda Games Showcase in June 2021, generating excitement due to its cooperative gameplay focus. However, since its announcement, little information has surfaced about the game, making its abrupt cancellation feel particularly abrupt to fans. The game's development had already slowed down in light of a significant restructuring within Microsoft itself, impacting various projects across its studios.