Avalanche Studios is preparing to terminate
77 of its 160-member staff following the loss of two publishing contracts worth $34 million. The Just Cause
developer is currently working on a sequel
to that game for Eidos
, which it says will receive a "stronger focus" after the layoffs, and some other game called The Hunter
Avalanche Studios' CEO Christofer Sundberg is "positive" the company will get back on its feet, but he doesn't believe the studio will grow to 160 employees again. He says the company became "industrialized and impersonal," and plans to keep the studio smaller from now on.