This is from back in October but I didn't read about it before, and from my searches I don't think it was ever discussed here.
http://gamereactor.eu/news/317/Avalanche+Studios+downsizing/
After losing two contracts lately Avalanche Studios are letting 77 people go from their office in central Stockholm. The two cancelled projects were unannounced, and work continues on their two announced titles Just Cause 2 and The Hunter with the remaining staff. The two contracts were worth 34 million dollars and the current financial crisis had an effect on the decisions to cancel the projects. One of the publishers wants to focus more on family friendly games while the other one has no money.
As there are many developers expanding in the region it should be possible for the people losing their jobs to find new employment elsewhere.
Interesting things:
Two contracts worth 34 million dollars, that's in line with what's usually assumed for PS3/360 development budgets (around 20 million each not including marketing costs).
It seems the recession had a direct impact on some developers after all (it's not that common to see cancellations directly attributed to it).
PS: I was trying to get a job with these guys for a while back in 2007, I'm glad I didn't succeed...
My Mario Kart Wii friend code: 2707-1866-0957
