Report: Avalanche Studios to half staff

Just Cause outfit prepares to pink-slip 77 of 160 as two game contracts valued at $34 million fall through; Just Cause 2, The Hunter remain on track.

If September's sales numbers are any indication, the gaming industry on the whole is weathering the current global economic crisis well enough. However, not everyone within the industry is feasting at the table. Swedish developer Avalanche Studios confirmed today that it will be laying off 77 of the approximately 160 employees at its office in Stockholm, as reported by Game Reactor.

According to the report, Avalanche had two contracts valued at $34 million for unannounced games go bust this year, which necessitated the staff reductions. Game Reactor notes that one of the projects was canceled due to its publisher shifting focus to the more family-friendly market, a move not uncommon for cash-tight game makers such as Majesco. The other project reportedly fell on a rough patch when its publisher ran out of money.

Established in 2003, Avalanche is best known for its 2006 debut Just Cause. The free-roaming, hyperbolic action adventure landed with modest praise and middling sales in the US, selling just shy of 200,000 copies across the Xbox 360, Xbox, PlayStation 2, and PC through September 2008, according to the NPD Group. The staff reductions will reportedly not impede development on Avalanche's two announced projects, Just Cause 2 and The Hunter.

Initially scheduled to arrive this year, the Eidos-published Just Cause 2 is now expected in 2009. For more on the game, check out GameSpot's previous coverage.

19 Comments

  • lovebird0125

    Posted Jan 31, 2009 5:54 pm PT

    On the first Just Cause I could open the 'chute as many times I wanted to.He never ran out of the "chute for some reason.I thought it was a glitch in the game.

  • lovebird0125

    Posted Jan 31, 2009 5:48 pm PT

    I'm so glad that JC2 is coming out this year during some time in the spring or summer.If it doesn't come out I will be really made because i've been waiting a long ( A LONG) time for it to come out to the store's.A have been saving my money to buy that game JC2!!!!!!!

  • lovebird0125

    Posted Jan 31, 2009 5:43 pm PT

    I just cannot wait for "Just Cause 2" to come out for me to play on my Play Station 3

  • lovebird0125

    Posted Jan 31, 2009 5:41 pm PT

    I hope this game "Just Cause 2" is fun ?!!

  • leshatton

    Posted Jan 22, 2009 1:59 am PT

    Just Cause was a fantastic game on the 360, it was so under rated by the magazines and websites(this one included). I wonder how many people never bothered to play it just because it had a mediocre review? Personally i cant wait for JC2!!!!!!!!

  • KSU-Wildcat

    Posted Nov 28, 2008 6:47 pm PT

    HA! The dozen or so comments are from the lucky few of us who appreciated Just Cause's greatness!

  • KSU-Wildcat

    Posted Nov 28, 2008 6:46 pm PT

    I love Just Cause! The sequel is one of my most anticipated games!!!

  • Strigidae

    Posted Nov 20, 2008 12:27 am PT

    Damn it! Hope the staff cut won't affect the quality.

  • king_bobo

    Posted Oct 29, 2008 1:48 pm PT

    Just Cause was incredible. I'm really looking forward to Just Cause 2!

  • monkeyman10989

    Posted Oct 29, 2008 9:36 am PT

    i am also just glad Just Cause 2 is still being made. i've been waiting for this game for a very (A VERY) long time. just cause somehow made it into my top 5 favorite video games of all time. i never realized it until i realized how much time i spent playing it. i love that game so much! i know it wasn't the greatest game of all time but it still was one of my favorite. i cannot wait for just cause 2 to blow the first one out of the water!

  • Seahawks_Rock

    Posted Oct 29, 2008 5:47 am PT

    I feel sorry for all the people that are losing their jobs. My firend's Uncle lost his job from a bank and he is really struggling at the moment. But on another note, I'm glad that Just Cause 2 is still coming out. It's just that we'll have to wait a little longer for it.

  • brok

    Posted Oct 28, 2008 11:17 pm PT

    My heart skipped a beat there- I thought Just cause 2 was dead. I. Want. Just. Cause. 2. SO much. It looks like it could be everything the first almost was and more. I sure hope it is, after the Mercs 2 fiasco.

  • Media_Mind

    Posted Oct 28, 2008 7:00 pm PT

    ok....

  • -HaloHitman-

    Posted Oct 28, 2008 6:52 pm PT

    Just Cause 1 was okay, I will probably rent the new one when it comes out.

  • Pete5506

    Posted Oct 28, 2008 6:50 pm PT

    Well this is to bad, I thought the game was ok

  • Merc_Scar

    Posted Oct 28, 2008 5:14 pm PT

    The first game was buggy and had some crash issues. Just forgot about the game altogether..

  • ColdfireTrilogy

    Posted Oct 28, 2008 4:41 pm PT

    Gamer it DIDNT sell 200,000 copies in September .... it said IN TOTAL its sold 200k copies as of September ... and Im sick of game companies trying to remedy their waning cash funds by making shovelware games ....

  • bawathegamer

    Posted Oct 28, 2008 3:46 pm PT

    wait a second. This game is quite old now. How the hell did it sell 200,000 copies this september? Is that a typo? Even on 4 platforms thats a large number .I didnt even know that game was still at retail.

  • runstalker

    Posted Oct 28, 2008 2:52 pm PT

    Sucks for them, but I'd be lying if I said I wasn't curious about the sandbox insanity they're planning for Just Cause 2. I enjoyed the first one enough to finish it, though recognizing its faults. I loved climbing the highest possible mountain and cliff diving for hundreds of feet before hitting the 'chute. They totally got that part right.

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