According to GameSpot, Avalanche Studios Group has closed its Liverpool studio and laid off 31 developers following the cancellation of Contraband, a co-op smuggler game originally announced during Xbox’s E3 2021 presentation. The studio initiated a “collective consultation process” back in September under United Kingdom labor laws before moving forward with the permanent closure. While the Liverpool location is shutting down, the rest of Avalanche Studios Group remains operational and will continue developing games. Contraband was supposed to be a AAA game set in the 1970s in the fictional country of Bayan, but Microsoft reportedly paused development in August before ultimately canceling it.
Microsoft’s broader purge
This isn’t just about one game getting axed. Contraband joins a growing list of casualties in Microsoft’s recent gaming purge. We’re talking about Rare’s Everwild, the Perfect Dark reboot, and a new MMO from ZeniMax Online Studios – all canned as part of that massive 9,000-person layoff wave earlier this year. That’s not just trimming fat, that’s major surgery.
The human cost
Here’s the thing that gets lost in these corporate announcements – 31 developers just lost their jobs. Real people with mortgages and families. Avalanche’s official statement talks about “exceptional talent, passion, and commitment” from the departing staff, but that doesn’t pay the bills. They went through that consultation process starting in September, which basically means they’ve been living with this uncertainty for months. That’s brutal.
What’s next for Avalanche?
The company’s studio update insists they’re focused on “carrying on making great games,” but you have to wonder about the long-term impact. Closing an entire studio location sends a pretty clear signal about their current financial health. And when your big Microsoft-backed project gets canceled, that’s got to shake investor confidence. Basically, they’re trying to put on a brave face while dealing with what looks like a pretty significant setback.
The bigger picture
So what’s really driving these cuts? Recent reports suggest Microsoft is struggling with “sky-high profit goals” that keep leading to these layoff waves. It’s not just about making good games anymore – it’s about hitting impossible financial targets. When you’re dealing with numbers that big, individual studios and projects become expendable. The gaming industry keeps getting more corporate, and honestly, it’s starting to show in all the wrong ways.
