Xbox has temporarily paused development on Contraband, a console exclusive created by Avalanche Studios, known for the Just Cause series. Originally revealed in 2021 as an open-world cooperative game set in the ’70s, it was initially planned for release on Xbox Series X/S and PC. However, since then, there have been minimal to no updates regarding this project.
It appears that tough times at Xbox continue, as another exclusive title, Contraband, seems to be facing obstacles. After the cancellations of Perfect Dark and Everwild, there are growing concerns that Contraband might follow suit and join the list of cancelled games. Although a job listing in April had initially sparked hope for the third-party Xbox game, recent updates from the Swedish firm may have dampened those expectations once again.
Avalanche Studios Confirms Contraband Development is Stopped
As a dedicated fan, I can confirm that Avalanche Studios has officially announced a pause in the active development of Xbox-published “Contraband.” The teams working on this project are currently assessing its future direction. In their statement, they expressed their shared enthusiasm for the game and promised to deliver an update as soon as possible.
It’s worth noting that this news comes shortly after various reports suggested that the action-adventure game had encountered development issues. Furthermore, this announcement arrives amidst the lingering effects of Microsoft’s significant layoffs in July, which led to the potential loss of up to 9,000 jobs. I, along with many other fans, eagerly await further updates on “Contraband.

Due to Xbox’s publishing division, which manages third-party projects like Contraband, being heavily affected by recent company-wide layoffs, they chose to pause the project, according to Game File. The report also mentioned that several producers and longtime lead Peter Wyse left the division as a result of these job cuts. Furthermore, it was suggested that since Avalanche Studios stopped working with Xbox, there will reportedly be no more layoffs in the future.

Over the past year, Xbox has enjoyed significant success due to popular first-party games like “Indiana Jones and the Great Circle” and “The Elder Scrolls 4: Oblivion Remastered.” However, the recent cancellation of several projects, including the remake of “Perfect Dark,” has left fans disappointed. This decision could have resulted in an even more impressive lineup of first-party games for Xbox. Additionally, the cancellations may lead to fewer day-one releases on Xbox Game Pass, a service that has already experienced a busy year, than initially anticipated.

It’s worth noting that news regarding Contraband has surfaced, approximately a week before Gamescom 2025 (August 20th-August 24th). During this period, Xbox is anticipated to make significant strides, as they will be revealing further details about their first handheld consoles, the ROG Xbox Ally and the ROG Xbox Ally X, which are being developed in partnership with Asus.
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2025-08-08 01:02