Xbox has halted the development of “Contraband,” a co-op open-world game from Avalanche Studios, four years after its initial announcement at E3 2021, amid a broader trend of project cancellations within the company.
According to Avalanche Studios Group, “active development has now stopped while we evaluate the project’s future.” However, Bloomberg journalist Jason Schreier reported on Bluesky that the game is entirely canceled, citing sources. “Xbox is canceling Contraband, announced in 2021 from Avalanche Studios (Just Cause), after four years of radio silence, sources tell Bloomberg News,” Schreier posted.
This announcement was later corroborated by an official statement on Avalanche’s website, which confirmed the pause in development and expressed gratitude for community excitement, promising future updates. The studio’s statement indicates a potential, though uncertain, future for the project.
“Contraband” was initially unveiled for Xbox and PC at E3 2021 with a teaser trailer, promising a setting in a 1970s smuggler’s paradise called Bayan. Despite the early announcement, no gameplay footage or further development updates have been released since. The lack of information led to speculation and concern among fans and industry observers.
Internally, Avalanche Studios faced challenges in 2022, including a dispute between management and employees over a controversial hire and communication issues. These challenges ultimately led to the formation of a union club and efforts towards a collective bargaining agreement, highlighting the studio’s internal struggles during the development period.
The cessation of “Contraband’s” development comes amid a broader trend of project cancellations at Xbox. Last month, Microsoft conducted significant mass layoffs, eliminating 9,100 jobs across the company, including hundreds within its gaming division. In the aftermath of these layoffs, other anticipated titles such as “Everwild” and “Perfect Dark” were also reportedly canceled, underscoring a period of restructuring and re-evaluation for Xbox’s game development portfolio.
