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Avalanche Closes Liverpool Studio, Lays Off 31 After Contraband Cancellation

The move follows Microsoft’s wider Xbox restructuring earlier this year.

Overview

  • Avalanche confirmed the Liverpool site has shut and 31 employees have been let go in a statement posted November 19.
  • A collective consultation required by UK labor law began in September and has now concluded with the closure.
  • Contraband, unveiled in 2021 as a 1970s co‑op open‑world project for Xbox, was canceled by Microsoft in August after active development had already stopped.
  • The company said the rest of Avalanche remains intact and it will support departing staff while continuing work on other games.
  • The closure arrives in the context of broader Xbox cutbacks reported this year, which also saw projects at studios like Rare and ZeniMax halted.