Xbox has halted all development on Avalanche Studios’ new IP, Contraband, in order to “evaluate the project’s future,” according to a recent report from Bloomberg. Xbox has completely canceled the project after more than four years since its initial announcement.
Bloomberg journalist Jason Schreier first shared the news on Bluesky, stating that “Xbox is canceling Contraband, announced in 2021 from Avalanche Studios (Just Cause), after four years of radio silence, sources tell Bloomberg News.”
Avalanche Studios later confirmed this in an official post, 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.”
What Was Contraband?
At E3 2021, Avalanche Studios announced Contraband with a brief teaser trailer. Set in the 1970s, the game’s premise was to offer a co-op open-world heist experience. Contraband takes place in a smuggler’s paradise known as Bayan, but the announcement did not showcase any gameplay footage.

Since then, developers have provided no updates or signs of progress in the game’s development. Consequently, many people have forgotten that the game was ever announced. It became clear that the development faced challenges as early as 2022, when Avalanche Studios encountered several controversies, suggesting that the project was not going smoothly.
Microsoft has canceled several projects this year, marking another setback for Xbox. This follows significant cuts in its Xbox and gaming divisions, which led to the layoff of about 9,000 employees across multiple studios. As a result, the company scrapped several games, including Perfect Dark and Everwild.
Regardless, it’s disheartening to witness the ongoing struggles within the industry, impacting not only new titles but also established names like Romero Games. Stay tuned for more updates and news as they develop.