Avalanche Studios, known for creating Just Cause, Mad Max, and co-developing Rage 2, has announced plans to lay off 50 of its developers, accounting for 9% of their global staff, and shut down studios in New York and Montreal. The decision is a strategic move intended to “ensure a stable and sustainable future” for the company. Amid minimal details on adjustements after the layoffs, the focus is promised to be on supporting staff through the transition and continuing to deliver premium gaming experiences to their players.
The Montreal studio, only open for eight months, was launched after the acquisition and integration of Monster Closet, a company developed by former creators of esteemed titles like Halo, Prince of Persia and Assassin’s Creed. The New York office has been operational since 2011. Despite these setbacks, Avalanche continues its work on projects like Contraband for Xbox Game Studios, a co-op game about smugglers set in the 1970s.
These layoffs come shortly after the Sweden-based Avalanche staff unionized with the help of Unionen and Engineers of Sweden. This new agreement standardizing issues, such as salaries and benefits, will take effect in 2025. These studio closures and layoffs mirror a larger trend within the gaming industry, largely attributed to over-ambitious expansions during the pandemic, lack of profitability from new technology like NFTs, economic instability, and the burden of producing high-cost blockbuster video games.
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