31 staff laid off as Just Cause developer Avalanche closes Liverpool studio. More changes may follow

Just Cause launched in 2006 to modest success, but it was Just Cause 2 in 2010 that became a major hit. Since then, the series has become Avalanche’s signature franchise, putting them on the map as a leading name in open-world gaming. It has been some time since their last game release, and they have now announced the closure of their Liverpool-based studio.

After Contraband put on hold, Avalanche Studios closes Liverpool office

A few months ago, Avalanche Studios announced that their new project in collaboration with Xbox, Contraband (the co-op smuggling game set in the 1970s that was first revealed in 2021) is now on hold. The studio said they’re evaluating the project’s future, though it’s unclear whether the game has been permanently canceled. There are rumors that the game is dead, but Avalanche hasn’t confirmed anything, and Contraband is still listed as their upcoming project.

At the end of September Avalanche announced they’re planning to close their Liverpool studio, and yesterday they confirmed it’s been done and they parted ways with 31 employees. But as they said before, the changes will also impact their other studio locations in Malmo and Stockholm, so more people could get layoff in the coming months.

Announcement from September 30.Source: Avalanche Studios Group

Announcement from November 19.Source: Avalanche Studios Group

Just Cause 4 came out in 2018, and since then there hasn’t been any news about the next game in the series. Over the past few years, Avalanche Studios Group has released other games under its divisions, like Generation Zero, Rage 2, and Second Extinction, but none of them really hit big. Their last game from Systemic Reaction, Ravenbound, launched in 2023 and currently sits at just 53% positive on Steam. If Contraband really got canceled, especially since it seemed like such a major project for the studio, they could be in some serious trouble.

Just Cause 4

December 4, 2018

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