Avalanche Studios, the studio behind the bombastic Just Cause games, is closing its New York and Montreal studios as it continues developing the rumored Just Cause 5. This decision affects over 50 employees, representing 9% of the company's workforce.
In a blog post on its website, Avalanche explained that the closures are “necessary to ensure a stable and sustainable future for the company.”
Despite these closures, Avalanche still operates three studios in Stockholm, Malmö, and Liverpool. The Montreal studio's closure is particularly surprising, as it had only been operational for eight months, while the New York studio had been open for just two years.
Avalanche is best known for its work on Just Cause, Mad Max, and RAGE 2. Alongside developing Just Cause 5, the studio is also working on a new Xbox exclusive, Contraband.
Through its subsidiary Expansive Worlds, Avalanche released the popular hunting simulator series theHunter: Call of the Wild. The underrated co-op game Generation Zero was developed and published by Avalanche's in-house team, Systemic Reaction.
Avalanche Studios’ layoffs come at a challenging time for the games industry. Companies like Xbox are laying off thousands of employees and closing beloved studios like Tango Gameworks, making it increasingly difficult for game developers to find work.
Despite closures from major publishers, new studios are emerging. For example, after laying off thousands of developers and shutting four studios, Xbox announced the opening of a new studio, Elsewhere Entertainment, in Poland.
The games industry is becoming more volatile, and gamers are yet to see the full impact of these layoffs on their favorite games.
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