In an interview now live on Edge, Christofer Sundberg, co-founder and creative director at Avalanche Studios, explains that the 20 staff served notice last week is down to "simple risk management", and depends on the company finding publishing deals over the summer.

Explaining that this year's E3 is "probably the most important E3 I’ve been to", he says that he's expecting good news to come out of it: "We’ve been having some discussions with publishers and we have many options, so I’m very positive."

In our conversation he criticises the lack of clear direction that many publishers are taking in order to overcome the recession: "It doesn’t seem like any publisher has a really clear vision of where it’s going or how it’s going to break this negative trend ... It’s scary for us to work with a publisher like that which can’t express a clear vision of where it wants to take the company, because it could go on and on along the same track." He suggests that relying on old licences is failing to ensure the industry progresses.

Sundberg also criticises other independent developers for growing too fast: "Some developers have focused more on growing than on the projects they’re doing, and I think that’s stupid. It’s insane to grow a studio over 150 people because the larger you get, the harder you’ll fall, and you will fall eventually." His statements are poignant in the face of today's rumours that fellow Stockholm-based developer Grin is to shed up to 160 staff.

Despite the pressures, Sundberg claims that morale is high at the company, with staff keen to ensure Avalanche's survival, which he says is down to changing the way the company works - developing smaller projects using existing tools and technology as well as the ambitious ones Avalanche is known for: "Considering the situation in Sweden right now the morale is really high, and I’m really glad to see that, and it helps to reshape the future for everyone."