Key Takeaways
Created with AI - we're still experimenting, so apologies if it misses the mark
- Contraband, an open-world cooperative game developed by Avalanche Studios, has been cancelled. This marks another setback for Xbox games and adds to a growing list of titles facing changes or cancellations.
- Avalanche Studios is undergoing significant organizational changes, including layoffs and studio closures, as a result of financial difficulties. The Liverpool studio will be shut down, affecting all employees, and there will also be job cuts and team reshuffles in Malmo and Stockholm.
- Despite these operational changes, Avalanche Studios remains committed to its future projects and dedicated player base. They are planning for new projects such as Just Cause 5, Rage 3, or something completely new.
- Avalanche Studios is following British law with a collective consultation process during the shutdown of their Liverpool studio, prioritizing support for all employees during this tough time.
Our favorite Goodies
Layoffs Loom for Avalanche Studios Following Contraband’s Cancellation and its Impact on Xbox Games
The cancellation of Contraband may not have generated the same public discussion as Perfect Dark or Everwild, but it marks another setback for Xbox games. Announced in 2021, the title, developed by the studio behind the Just Cause series, was envisioned as a cooperative open-world experience. The game was ultimately canceled on August 7. This adds Contraband to a growing list of Xbox titles facing significant changes or cancellations.
The cancellation of Contraband was followed by news of significant organizational changes at its developer, Avalanche Studios. This information, initially reported by the Contraband team, was later detailed in a comprehensive statement from Avalanche Studios dated September 30, 2025. The statement outlined extensive layoffs and studio closures, reading in part: “Facing tough times for our company and industry, we’ve done a deep dive to secure Avalanche Studios’ future. This review shows that we need to make changes to our staffing and offices, unfortunately leading to many job cuts.
Restructuring Affects Multiple Avalanche Studios Locations, Dedication to Future Projects Remains Unwavering
We are planning to shut down our Liverpool studio and will be doing this properly, following British law with a collective consultation process. All Avalanche employees in Liverpool will be affected by this. It won’t stop there though; our studios in Malmo and Stockholm are also going to experience job cuts and team reshuffles. Our top priority right now is to support all our employees through this tough time. Even with these changes, we’re still fully committed to making amazing games for our dedicated players. We’re not saying what’s next after Contraband just yet though. It could be Just Cause 5, Rage 3, or something completely new. Time will tell. For now, all we can do is wish everyone the best.” Avalanche Studios remains committed to its future projects and dedicated player base despite these significant operational changes.
In Case You Missed It
For fans of Hideo Kojima and his groundbreaking work in gaming, there’s some exciting news on the horizon. As detailed by Marcus Thompson on August 10th, Kojima is embarking on a solo project to create Physint, which promises to be a spiritual successor to Metal Gear Solid. Exclusive to PlayStation, this ambitious endeavor aims to redefine the intersection of cinema and gaming over the next five to six years. Dive into the details at Hideo Kojima Works Alone on Spiritual Successor to Metal Gear Solid, Physint and see what the future holds for this legendary game designer. For those interested in the latest developments in the gaming industry, particularly regarding studio closures and layoffs, Sophie Laurent’s article “Avalanche Studios Closes Studio, Conducts Layoffs Following Contraband Cancellation” published on September 30, 2025, offers a detailed look at these changes. The piece examines the impact of recent challenges faced by Avalanche Studios Group, including project cancellations and office closures, which have led to significant restructuring across their global operations. Dive into this insightful report Avalanche Studios Closes Studio, Conducts Layoffs Following Contraband Cancellation to learn more about the industry’s current landscape and its effects on developers around the world. For those interested in the latest developments in the gaming industry, especially regarding studio changes and their impact on upcoming projects, be sure to check out “Just Cause Producer Layoffs and Office Closure Announced” by Jonathan Dubinski (published on 2025-10-01). The piece delves into Avalanche Studios Group’s recent restructuring decisions, including layoffs in Liverpool and potential staff reductions in Sweden. It’s a must-read for anyone following the future of game development at these studios (Just Cause Producer Layoffs and Office Closure Announced).