Xbox has halted work on Contraband, a console exclusive being developed by Just Cause creator Avalanche Studios. Described as an open-world co-op game set in the '70s, Contraband was first unveiled in 2021 for Xbox Series X/S and PC but has received little to no updates since then.
The unfavorable times at Xbox don't seem to be ending just yet, with another console exclusive hitting a bump in the path. After the cancellations of Perfect Dark and Everwild, Contraband seems to be edging closer to joining the infamous list. While the lack of updates since its announcement had fans worried before, a job listing spotted in April had restored some faith in the future of the third-party Xbox game. However, that small glimmer of hope may have now been undone, courtesy of the latest sit-rep offered by the Swedish firm.
Avalanche Studios Confirms Contraband Development is Stopped
Confirming multiple reports, Avalanche Studios revealed that "active development" on Xbox-published Contraband had indeed stopped, as the teams involved "evaluate the project's future." In its brief statement, the studio also acknowledged the "excitement" surrounding the title and assured fans that an update on this matter would arrive at the earliest opportunity. Notably, this announcement followed soon after multiple reports said that the action-adventure game had hit a roadblock in development. Moreover, this news also comes in the extended aftermath of Microsoft's mass layoffs in July, which resulted in as many as 9,000 job losses.
The decision to put work on Contraband "on hold" was down to Xbox's publishing division, which handles third-party projects such as this one, being "significantly impacted" by the recent company-wide layoffs, per Game File. The report added that the job cuts involved multiple producers and longtime lead Peter Wyse departing the division. Moreover, it was claimed that, owing to Avalanche Studios stopping work on its collaboration with Xbox, there are not expected to be "any further cuts" moving forward.
Xbox has had a strong run over the past year or so, thanks to major first-party releases such as Indiana Jones and the Great Circle, The Elder Scrolls 4: Oblivion Remastered, and more. However, the recent scrapping of some of its studios' projects, especially the Perfect Dark remake's cancellation, has not gone down well with fans. It has effectively prevented what could have been an even more jam-packed first-party games lineup for the gaming giant. Simultaneously, it has also meant that Xbox Game Pass, a service that has had a very eventful year so far, will receive fewer day-one releases in the near future than what may have been expected prior to the aforementioned events.
Interestingly, the news about Contraband comes just over a week ahead of Gamescom 2025 (August 20-August 24), where Xbox will have a big presence. The console maker is scheduled to share more details about the first-ever Xbox handhelds made in collaboration with Asus, the ROG Xbox Ally and the ROG Xbox Ally X.
- ESRB
- Rating Pending
- Developer(s)
- Avalanche Studios
- Publisher(s)
- Xbox Game Studios
