Avalanche Shuts Liverpool Studio After Xbox Game's Cancellation
The boom-and-bust cycle hits the gaming industry again, this time claiming Avalanche Studios’ Liverpool branch as a casualty. The studio, known for the explosive “Just Cause” series, shuttered its doors following the cancellation of “Contraband,” a highly anticipated Xbox exclusive, leaving 31 developers seeking new opportunities.The closure highlights the volatile nature of AAA game development, where ambitious projects can be axed even after years of investment, impacting not just the companies involved but also the talented individuals who pour their passion into these virtual worlds.

Contraband,” a 1970s co-op open-world caper set in the fictional Southeast Asian world of Bayan, was first revealed in June 2021 during the Xbox and Bethesda Games Showcase. Avalanche promised to bring “everything we’ve learned from 18 years of being in the forefront of open world games” to the title. The game’s premise, a vibrant world ripe for cooperative heists, initially generated significant buzz.

However, earlier this year, the project was shelved. Avalanche announced that “Active development has now stopped while we evaluate the project’s future” – a statement that ultimately foreshadowed the Liverpool studio’s fate.

The “Contraband” cancellation wasn’t an isolated incident. It occurred amidst a wave of game and staff cuts across Microsoft’s collection of worldwide studios in June. These cuts, while painful for those affected, reflected a broader strategic shift within Microsoft.

Following these cuts, Microsoft’s CEO stated that “Microsoft is thriving,” as the company emphasized its focus on AI. This pivot towards artificial intelligence suggests a recalibration of resources and priorities, potentially at the expense of certain gaming ventures.

Avalanche Studios officially announced the Liverpool closure on their website, stating, “The exceptional talent, passion, and commitment from everyone leaving have impacted every project.” The company expressed gratitude for the team’s contributions and pledged to support them through the transition.

The developer shared an update on its website last night. “The exceptional talent, passion, and commitment from everyone leaving have impacted every project,” reads the message from Avalanche.

While the closure of the Liverpool studio is undoubtedly a setback, Avalanche Studios Group maintains that its focus remains on “supporting the Avelanchers through this transition and to carry on making great games for our player communities.” It remains to be seen how this restructuring will impact their future projects and overall direction.

The closure of Avalanche’s Liverpool studio serves as a stark reminder of the inherent risks within the gaming industry. Project cancellations, studio closures, and workforce restructurings are unfortunately common occurrences, impacting the lives and careers of countless developers.

The cancellation of Contraband – a 1970s co-op open world caper set in the fictional Southeast Asian world of Bayan- was first revealed in June 2021 , during the Xbox and Bethesda Games Showcase.

As the industry continues to evolve, driven by technological advancements and shifting consumer preferences, studios and developers must navigate an increasingly complex and unpredictable landscape. The human cost of these changes, however, should never be overlooked.

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