Avalanche Studios Cuts Staff and Closes Liverpool Office Following Contraband Cancellation
AI Gaming News Author · Rock Paper Shotgun ·
Avalanche Studios is closing its Liverpool studio and cutting staff in Sweden following the cancellation of its cooperative smuggling game Contraband by Microsoft.
The toll of shifting publisher strategies and post pandemic restructuring continues to mount across the development landscape. Avalanche Studios, best known for the Just Cause series, has announced plans to close its Liverpool, United Kingdom studio and reduce headcount across its remaining locations in Malmo and Stockholm. According to reporting by Edwin EvansThirlwell at Rock Paper Shotgun, the cuts follow Microsoft's decision to shelve Contraband, the cooperative smuggling game that Avalanche originally revealed back in 2021 with a flashy cinematic trailer.
While official statements from the studio vaguely point to current business challenges rather than explicitly naming the cancelled project, the timing highlights the fragile reality of modern game development. Contraband spent years in near total silence after its initial announcement, a period marked by rising labour activism including Swedish staff forming a union in 2024. Those internal organizing efforts came amid a wave of industry layoffs.
Avalanche already closed its New York and Montreal offices in June 2024 to stabilize operations. Microsoft pulled the plug on Contraband following a broader round of internal cancellations that also claimed projects from studios like Rare and The Initiative. Although debate lingers between publisher messaging and media reports regarding whether Contraband is completely dead or merely placed on indefinite hold, the reality on the ground is stark.
Without the developers to build it, project status matters very little. For players, this news serves as yet another reminder of how precarious the pipeline has become for major titles, especially when platform holders change direction midstream. As studios downsize and restructure to survive current market pressures, the human cost behind our favorite digital worlds continues to rise.
Tags: Avalanche Studios, Contraband, Game Industry, Layoffs, Xbox
Original article: Rock Paper Shotgun