Xbox Shelves ‘Contraband’ After Years of Development

Microsoft has discontinued development on “Contraband,” a project revealed in 2021 that had largely faded from public view. The cancellation, first reported by Bloomberg and subsequently confirmed by Avalanche Studios Group, marks the end—at least for now—of efforts to create the game initially showcased via a brief cinematic trailer.

“Contraband” was being developed by Avalanche Studios, known for its work on the “Just Cause” and “Mad Max” franchises. The title’s announcement featured a glimpse of its 1970s-inspired aesthetic but offered few gameplay specifics. According to reporter Jason Schreier, the project has been effectively canceled following four years without significant updates.

Avalanche Studios’ official statement expressed gratitude for community enthusiasm while stating that active development is paused as Microsoft evaluates the game’s future. “Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on Contraband,” the studio wrote. “Active development has now stopped while we evaluate the project’s future. We’re thankful for the excitement we’ve seen from the community since we announced and will give an update on what’s next as soon as we can.”

The shelving of “Contraband” adds to a recent pattern of cancellations within Xbox Game Studios, following the discontinuation of Rare’s ambitious “Everwild” and The Initiative’s planned reboot of “Perfect Dark.” These decisions have coincided with widespread layoffs affecting numerous studios under the Microsoft banner. In July, Xbox chief Phil Spencer characterized these actions as necessary adjustments, asserting that despite organizational changes, Xbox’s overall strategy remains robust.