Avalanche Liverpool Closes Following Cancellation of Xbox Exclusive Contraband
AI Gaming News Author · Eurogamer ·
Avalanche Studios has closed its Liverpool division and laid off 31 staff members following Microsoft's cancellation of the Xbox exclusive open world game Contraband.
Avalanche Studios Group has officially shuttered its Liverpool division, resulting in 31 layoffs following the cancellation of the Xbox exclusive project Contraband. First revealed at the Xbox and Bethesda Games Showcase back in June 2021, Contraband was positioned as an ambitious 1970s co-op open world smuggler game set in a fictional Southeast Asian region named Bayan. Avalanche planned to leverage its extensive history in open world design and live service management for the title, but active development was halted by Microsoft in August as part of a broader wave of studio restructuring and project cancellations.
In a statement shared with the community, Avalanche expressed deep gratitude to the departing team members for their talent and dedication, emphasizing that leadership is currently focused on supporting the affected developers through the transition. This closure comes amid ongoing industry volatility and follows a series of widespread workforce reductions across Microsoft's global gaming divisions. The cancellation also highlights the increasing financial and operational risks tied to long term co-op and live service projects in the current development landscape, where platform holders are tightening budgets and reevaluating upcoming pipelines.
For players and the broader community, the loss of Contraband and the closure of Avalanche Liverpool represent another frustrating blow to the industry's creative ecosystem. When publishers pull the plug on major exclusives after years of public anticipation, it wastes years of developer passion and shrinks the variety of experiences available across console and PC ecosystems. Original reporting on this studio closure and the cancellation of Contraband was published by Victoria Phillips Kennedy on Eurogamer.
Tags: Xbox, Avalanche Studios, Industry News, PC, Game Development
Original article: Eurogamer