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Xbox Halts Development of Contraband at Avalanche Studios

After five years, Xbox and Avalanche Studios put Contraband on hold, possibly canceling the project.

Angel Kicevski by Angel Kicevski
August 7, 2025
in News, Xbox
0

Contraband has hit a significant roadblock as Xbox has stopped its development at Avalanche Studios. After five years in the works, the project is now “on hold,” with some sources even calling it outright canceled. Fans have been left hanging, especially after a recent job posting hinted that work might still be ongoing.

Stephen Totilo at Game File broke the news that Microsoft has paused development of the game. The silence from Microsoft and Avalanche hasn’t helped clear things up either, with neither offering comments when the report went live.

Contraband was first announced at E3 2021 as a co-op open-world game set in a fictional 1970s location. The reveal trailer, which once lived proudly on the official Xbox YouTube channel, has since been delisted. That move alone feels like a big red flag, right?

During Xbox’s mass layoffs in early July, questions about Contraband’s fate came up frequently, but no clear answers emerged. Oddly enough, a recent job listing suggested the game was still alive, looking for someone to lead live service offerings. Guess they changed their minds or the winds shifted.

Jason Schreier from Bloomberg confirmed the pause and took it a step further, saying the game was outright canceled. Avalanche Studios’ own statement on their website admitted that active development has stopped while they evaluate what’s next. They thanked the community for their excitement and promised updates as soon as possible.

With all this back and forth, it’s hard not to wonder: was Contraband ever really going to see the light of day? Or did it fall victim to shifting priorities at Xbox? Whatever the case, it’s a tough break for fans who were looking forward to a fresh co-op experience in a gritty, 70s-inspired world.

What’s your take on Contraband’s sudden halt?

Tags: Avalanche StudiosContraband
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Angel Kicevski

Angel Kicevski

I've spent half of my life playing video games, ever since the competitive 1.6 era. Now I am happily married to Margarita Kicevski, and have two beautiful children. My goal is to deliver fresh news and updates, but most of the time I want to work on guides. Since I have rebooted this website, I am planning on making it huge. Just you wait!

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