Xbox and Avalanche’s Contraband Is Canceled — Another Game Gone in the Wake of Recent Cuts

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It appears that a new Xbox game titled Contraband, initially announced during the Xbox Games Showcase in 2021, is reportedly being canceled. According to initial reports by Jason Schreier and subsequent confirmation from the developers, work on the project has ceased. However, sources suggest that this decision does not involve any additional layoffs.

Contraband was set in a fictional 1970s world called Bayan, marketed as a co-op smuggler’s paradise. The game was being developed by Avalanche, the studio known for open-world titles like the Just Cause franchise, and was being published under the Xbox Game Studios Publishing umbrella, which is also working on Ninja Gaiden 4 with Koei Tecmo and PlatinumGames, as well as OD with Kojima Productions.

Since its initial reveal, Contraband has not been shown at any subsequent events, and the trailer was recently delisted, leading to speculation about its status. The trailer featured a frozen moment in time of a criminal crew preparing for a heist while Steely Dan’s “Do It Again” played in the background.

Disappointing, but not exactly surprising

During Microsoft’s latest round of job cuts affecting several teams within the Xbox division, a few projects were unfortunately terminated. Among these were The Initiative’s Perfect Dark, leading to the closure of the studio, Rare’s Everwild, and an upcoming MMORPG from ZeniMax Online Studios. A collaboration with Romero Games may have been affected too, potentially putting their position at risk.

Initially, it was surprising that Contraband wasn’t among the projects cut since it hadn’t been heard of in quite some time. However, it now seems that the decision simply required more time to be finalized.

The layoffs have caused a great deal of turmoil at Xbox, with employees feeling confused and frustrated. According to reports from Windows Central, morale at ZeniMax is particularly low, with many skilled quality assurance testers being let go during the cuts.

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2025-08-07 20:39