Avalanche Liverpool studio closed following cancellation of Xbox exclusive Contraband
Avalanche Studios Group, the team behind the Just Cause franchise, has shuttered its Liverpool office following the earlier cancellation of its Xbox exclusive, Contraband. The closure affects 31 roles, marking a significant downsizing for the company’s UK presence.
The move comes after a collective consultation period initiated in September. In an update shared by the company, Avalanche thanked the Liverpool team for their contributions across multiple projects and said it is focused on supporting staff through the transition while continuing to build games for its community. The studio referred to its employees as “Avelanchers” and emphasized their impact across the wider group’s portfolio.
Closure follows project setback
Contraband—once pitched as a cooperative, open-world smuggling adventure set in the fictional Southeast Asian locale of Bayan during the 1970s—was first revealed in June 2021 during an Xbox showcase. At the time, Avalanche framed the project as a culmination of nearly two decades of open-world expertise paired with live-service know-how.
Microsoft halted the project in August, with Avalanche confirming that active development had ceased while it reassessed the game’s future. The cancellation arrived in the wake of broader restructurings and cuts across Microsoft’s global studios earlier in the year.
What happens next for Avalanche
While the Liverpool office is now closed, Avalanche says its remaining teams will continue development on other titles. The company reiterated its commitment to “making great games” and to providing support for the affected staff during the change.
A storied open-world specialist at a crossroads
Avalanche’s reputation has been built on large-scale sandbox experiences, with the Just Cause series defining its identity. Contraband was set to extend that legacy with a focus on cooperative play and a smuggling-centric fantasy. With the project paused and the Liverpool team disbanded, the studio’s roadmap is being reshaped, even as it pledges to serve its player communities and retain its focus on ambitious open-world design.
The closure underscores a difficult year for many developers, as shifts in strategy and cancellations ripple through the industry. For Avalanche, it’s a moment to regroup—supporting former Liverpool staff while charting a new course for its ongoing and future work.
