Avalanche Studios restructures — Liverpool studio closed; Contraband halted

Avalanche Studios announced a company-wide restructuring today. Key points:

• Liverpool studio: Full closure; all staff in the city affected.
• Malmö & Stockholm: Workforce reductions and team restructuring (scope not specified).
• Contraband: Development on the game has been halted after Microsoft ended active development; the project’s future is unclear.

The announcement cites “current challenges to our business and the industry.” While Avalanche didn’t explicitly link the moves to the cancellation of Contraband, the timing follows Microsoft’s decision to end active development on that project.

Official statement: Avalanche Studios — Studio update

Further coverage: Game Developer — Avalanche confirms layoffs and studio closure

Avalanche remains known for the Just Cause series; Contraband was the main forthcoming title listed on their site, so the company’s next steps for remaining teams are uncertain. The statement ended: “Despite these changes, we remain deeply committed to providing amazing games to our passionate player communities.”

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Questions to readers: What should Avalanche prioritize now — new IP, support for Just Cause, or smaller live-service projects? Share your thoughts below.