In a surprising turn of events, Xbox has officially cancelled the highly anticipated title, Contraband, developed by Avalanche Studios. Initially unveiled in June 2021 during the Xbox and Bethesda Games Showcase, the co-op smuggling game has seen little development progress over the years. Avalanche Studios confirmed the news, stating that active development has ceased as they reassess the project. The cancellation comes amidst broader staff cuts within Microsoft’s game studios and hints at a renewed focus on AI and other projects. Despite this, no staff layoffs have been linked to the cancellation, though Avalanche Studios recently saw over 100 developers unionize.

What led to the cancellation of Contraband?

The cancellation of Contraband mainly stems from Microsoft's shifting priorities and challenges faced during its development. After several years without updates, Microsoft decided to halt the game's production as part of a larger restructuring within its gaming division.

Contraband was designed to be an open-world co-op game with a focus on smuggling mechanics, a genre that Avalanche Studios has experience with due to their work on the Just Cause series. The excitement surrounding its announcement showed great potential for engaging gameplay and creative teamwork, making its cancellation particularly disappointing for fans. With Avalanche Studios being recognized for their commitment to innovative game development, Contraband's fate leaves many wondering about the future of the studio's projects in a rapidly changing industry.