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Just Cause developer Avalanche Studios closing UK studio in workforce restructure, following cancellation of Xbox exclusive Contraband
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Just Cause developer Avalanche Studios closing UK studio in workforce restructure, following cancellation of Xbox exclusive Contraband

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Avalanche Studios is the latest developer to be impacted by layoffs, as the company’s UK studio is set to be closed as part of a workforce restructure that will impact its Swedish studios too.

The studio is known for the Just Cause series (not to be confused with Hogwarts Legacy developer Avalanche Software, owned by Warner Bros.) and was previously working on an Xbox exclusive called Contraband.

However, that project was cancelled by Microsoft back in August, with the studio writing in a statement: “Active development has now stopped while we evaluate the project’s future.”

Contraband – Official Reveal Trailer 4K | E3 2021Watch on YouTube

In a statement shared by the company today, the decision to restructure has been made “in light of current challenges to our business and the industry”.

It continued: “This review had led us to the difficult conclusion that we must make changes to our staffing and locations. As a result, we are proposing to close our Liverpool studio, and to initiate a collective consultation process, as required by UK law. This will impact all Avalanchers in Liverpool. The changes will also impact our other studio locations in Malmő and Stockholm, where we will reduce our workforce and restructure the teams to address our games’ needs.”

It concluded: “Despite these changes, we remain deeply committed to providing amazing games to our passionate player communities.” The statement does not mention Contraband and its cancellation specifically.

Contraband, a co-op smuggling game, was revealed in June 2021 at the Xbox and Bethesda Games Showcase, but little of the game has been shown since. Its official trailer has been removed from the Avalanche website, though you can see IGN’s video above.

Its cancellation arrived in the wake of layoffs across Microsoft in July, which resulted in the cancellation of multiple projects including The Initiative’s Perfect Dark, Rare’s Everwild, and an unannounced ZeniMax MMO.

Microsoft CEO and chairman Satya Nadella later claimed “Microsoft is thriving”, largely due to its investments in AI.

Back in 2024, Avalanche Studios entered a collective bargaining agreement with Swedish unions, which was planned to go into effect by the second quarter of this year.

“Over the past years, we’ve taken significant steps toward making Avalanche one of the best workplaces in the games industry,” Avalanche CEO Stefanía Halldórsdóttir said at the time.



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'Red Hood' Writer Speaks Out on Book's Surprise Cancellation
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‘Red Hood’ Writer Speaks Out on Book’s Surprise Cancellation

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Earlier this week, DC Comics abruptly cancelled its new Red Hood comic from trans writer Gretchen Felker-Martin and artist Jeff Spokes. The decision came after Felker-Martin posted comments and jokes on social media about the assassination of prominent right-wing activist Charlie Kirk, which occurred on the same day—September 10—as the comic’s launch. DC Comics said in a statement that social media posts “that can be viewed as promoting hostility or violence are inconsistent with [our] standards of conduct.”

Now, in a new interview with the Comics Journal, Felker-Martin opened up about her posts and DC’s decision. She argued that DC had had no issue with her outspoken and sometimes incendiary social media presence when it approached her about doing a comic in 2024.

She recalled how she told the publisher at the time that it would “get between five and a hundred of the craziest people you’ve ever met in your life, screaming for my head and yours.” She went on to say that initially DC had given her “no terms or limitations” on her social media; a DC spokesperson reiterated to io9 the company’s previous stance on not abiding by posts that “promote hostility or violence.”

In the weeks leading up to Red Hood’s launch, past social media posts made by Felker-Martin on charged political topics, including the Israel-Gaza war, resurfaced. Felker-Martin told the Comics Journal that it was at this point that she received pushback on her social media activities; a spokesperson for DC confirmed this to the Comics Journal, saying the company requested Felker-Martin be more mindful of her online statements. Felker-Martin claimed she generally abided by that request until the day of Kirk’s murder.

The author said she stood by her comments about Kirk while expressing sympathy for her Red Hood co-creators, which include Spokens, cover artist Taurin Clarke and editors Arianna Turturro and Rob Levin. “I can only put it down to really just a moment of poor impulse control,” she told the Comics Journal. “Had I thought for another second, of course I would’ve known [that it would be a problem for DC], and naturally, as soon as I had said it, I did know.”

Felker-Martin also stressed that she did not want to work with DC Comics in the future: “I have no desire to be part of any organization that wants to pretend that people like Charlie Kirk are decent human beings who deserve respect.”

io9 has also reached out to Felker-Martin and will update this post if and when we hear back.

Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.



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Tiny Chef smiling
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Tiny Chef reveals “best chapter is coming” in first TV interview since Nickelodeon cancellation

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Tiny Chef has broken his silence, promising fans that his “best chapter is coming” after the sudden cancellation of his Nickelodeon series earlier this year.

The puppet chef went viral back in June, shortly after Nickelodeon pulled the plug on his show despite it running for three seasons and even winning an Emmy. Just a month later, in July, creators Rachel Larsen and Ozlem Akturk revealed that Tiny Chef had effectively been “saved” thanks to overwhelming fan support.

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Since then, Chef has leaned into social media, taken a road trip, and embraced a more reflective lifestyle of meditating, strumming his banjo, and popping up occasionally online. But this week marked a major milestone for the fuzzy green puppet: Chef’s first televised interview since the cancellation.

PBS interview teases bright future for Tiny Chef

PBS News Hour’s Stephanie Sy sat down with Tiny Chef in Los Angeles, asking how he was handling life after cancellation. “Well, I’m not going to lie. Things were a little tough there for a while,” Chef admitted. “But sometimes you’ve got to pull yourself up by the bootstraps, look around at all the wonderful things in the world. I said: ‘Cheffy, you got to find the next adventure.’”

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When asked about the support from fans, Chef offered heartfelt gratitude: “I don’t even call them fans really. They’re just friends that I haven’t met yet.”

The biggest tease, however, came from Chef’s co-creator Rachel Larsen, who hinted that a comeback may be around the corner. “I just feel really strongly in my heart that the best of Chef is to come,” she told PBS, while stressing that any next step would be taken carefully. For now, the team is focused on social media, but the optimism is clear: Chef isn’t done cooking just yet.

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Everwild's exec producer moves from Rare to Xbox Game Studios following cancellation and Microsoft layoffs
Game Reviews

Everwild’s exec producer moves from Rare to Xbox Game Studios following cancellation and Microsoft layoffs

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Everwild’s executive producer has a new role at Xbox, following the cancellation of Rare’s long-in-development project.


Amidst layoffs at Microsoft in July, Rare’s fantasy adventure Everwild was cancelled and a number of employees at the British studio lost their jobs.


Now, as reported by VGC, the game’s executive producer Louise O’Connor has moved to Xbox Game Studios as its chief of staff, following 25 years at Rare.

Everwild – Eternals Trailer – Xbox Games Showcase JulyWatch on YouTube


The move comes almost a year after former head of Rare Craig Duncan became head of Xbox Game Studios, after Alan Hartman retired.


O’Connor first worked at Rare on Conker’s Bad Fur Day for the N64. She later worked at the studio as head of animation and its incubation director, responsible for innovation.


Everwild was first revealed in 2019 as the next big project from Rare. It surfaced again in 2020 with a trailer (above) featuring gorgeous environments and creatures, but little was seen aftewards until its cancellation.


Notably, Rare veteran Gregg Mayles also left the studio in the wake of the Microsoft layoffs, after 35 years.

This is a news-in-brief story. This is part of our vision to bring you all the big news as part of a daily live report.



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Crystal Dynamics subject to more layoffs following Perfect Dark cancellation
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Crystal Dynamics subject to more layoffs following Perfect Dark cancellation

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Crystal Dynamics has announced the “difficult decision” to lay off more staff, citing “evolving business conditions”. It added the decision was not made lightly, but was necessary to “ensure the long-term health of our studio and core creative priorities in a continually shifting market”.

In a post shared on LinkedIn, the studio thanked those impacted by these layoffs for their “hard work, talent and passion”, stating Crystal Dynamics is “committed to offering the full extent of support and resources at our disposal during this transition”.

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It went on to additionally thank the rest of its team, as well as its community and partners for the “continued support” as the studio builds a “creative, sustainable, and resilient tomorrow together”.

The next entry in the Tomb Raider series – which is being developed in collaboration with Amazon – is not affected by these most recent layoffs at Crystal Dynamics.

This week’s layoffs follow the cancellation of Perfect Dark earlier this year by Microsoft. While the reboot was being helmed by The Initiative, Crystal Dynamics was supporting the project.

Well this is it. I was let go from Crystal Dynamics as Perfect Dark was cancelled. I am now out of a job. I genuinely dont know what to do at this moment but to frantically apply for as many jobs that are applicable. If anyone needs a Senior Environment Artist of 10+ years, please let me know.

— Maja Öberg (@majaoeberg.bsky.social) August 27, 2025 at 6:04 PM

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The studio previously laid off 17 staff members in March of this year. At this time, Crystal Dynamics said this was “necessary to better align our current business needs and the studio’s future success”, and was “not a reflection of the dedication or ability of those affected”.

This is a news-in-brief story. This is part of our vision to bring you all the big news as part of a daily live report.



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