Formed after the collapse of Rock Solid Games, the studio gained early success with the first "Just Cause" title. The team then began "Just Cause 2"s development, but the company suffered from financial problems due to the cancellations of two contracted projects. Despite missing the release window twice, "Just Cause 2" was both a critical and financial success for Avalanche Studios. The company then opened a studio in New York City to work on "Just Cause 3", while the Stockholm team began working on "Mad Max" in collaboration with Warner Bros. Interactive Entertainment. The company announced two titles in 2017, "Rage 2" with id Software and a self-published title named "Generation Zero". Nordisk Film also acquired the company in the same year.