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Xbox and Avalanche Halt “Contraband” Development After Years in the Works

Xbox Series
Aug 09, 2025 • rob
Xbox and Avalanche Halt “Contraband” Development After Years in the Works
After more than five years in development, Contraband, the cooperative smuggler’s sandbox from Avalanche Studios Group and Xbox Game Studios Publishing, has been placed on hold. First revealed during E3 2021 as a “co-op smuggler’s paradise” set in the fictional 1970s world of Bayan, the game was planned for Xbox Series X|S, Windows PC, and Game Pass, but never progressed past its initial cinematic teaser. Avalanche Studios confirmed the news on its website, stating: “Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on Contraband. 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 decision comes during a period of major restructuring at Microsoft, which recently laid off roughly 9,000 employees across multiple divisions, including Xbox Game Studios, Rare, Turn 10, King, and ZeniMax. These cuts have led to the cancellation or shelving of several projects, including Everwild, Perfect Dark, and other unannounced titles. While Avalanche has not confirmed whether Contraband is permanently canceled, the indefinite pause in development and the broader wave of layoffs signal an uncertain future for the once highly anticipated cooperative title. Source: https://avalanchestudios.com/stories/contraband-update
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