It remains a terrible year for employment in the video game development industry.
On Monday, Sweden-based Avalanche Studios Group, the production company behind the “Just Cause” action film series which it just acquired the rights to in Hollywood, said it was cutting 9 percent of its workforce.
It may not seem like much, but Avalanche currently has three locations: Stockholm, Liverpool, and Malmö, Sweden. The New York and Montreal studios have been permanently closed, the latter after only eight months of operation, and GameSpot noted that Avalanche's Swedish branch had recently unionized.
“Our focus is now on supporting all Avalanchers through this difficult time,” studio executives said in a statement. “We thank those who are departing for their valuable contributions and remain committed to creating great gaming experiences for our players.”
Their next promise is a game called Contraband, a Just Cause-like action adventure set in a tropical banana republic where anything goes. The game doesn't have a release date yet, but it's been promised to be available on Xbox Game Pass the same day.
Video game makers continue to lay off developers every quarter
Video game development has been on a tough note recently. In early May, Xbox closed the development studios behind Redfall (Arkane Austin) and Ghostwire: Tokyo (Tango Gameworks), both of which were tasked with providing first-party content for Xbox Game Pass and driving subscriptions and engagement.
Earlier this year, Microsoft cut 1,900 development jobs at its Xbox division and newly acquired Activision Blizzard, despite its market capitalization exceeding $3 trillion, surpassing Apple as the world's richest company.
Elsewhere, “Company of Heroes” maker Relic Entertainment announced job cuts, while Take-Two Interactive, makers of hit franchises like “Grand Theft Auto” and “NBA 2K,” said it would lay off a further 5% of its workforce in an effort to save $165 million for investors.
