Xbox has stopped development of Contraband.
According to Stephen Totilo at Game File, Microsoft has recently stopped development of the upcoming(?) game at Avalanche Studios. The report says that development, which had been going on for five years, is now “on hold”
Totilo adds that Microsoft declined to comment on the state of the game and Avalanche hadn’t responded by the time his report went live. He also added that games from studios such as Platinum, Kojima Productions, and Asobo are still in the works per sources.
When Microsoft held mass layoffs across Xbox back in early July, the state of Contraband was one of the questions many fans had. It was never directly addressed, but a job posting seemed to suggest work was continuing. That position was slated to be to lead the game’s live service offerings.
Bloomberg’s Jason Schreier corroborated the story, but goes further to say that Contraband was outright canceled.
In a statement on the studio’s website, Avalanche games confirmed that development has stopped.
“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,” the statement reads. “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.”
Contraband was first announced back at E3 2021. The game was planned to be a co-op open world game set in the 1970s in a fictional location.
Recently, it’s reveal trailer had also been delisted from the official Xbox YouTube Channel.
What do you think about Contraband’s development being stopped at Xbox? Let us know down below, and join the discussion at the Insider Gaming forums.
For more Insider Gaming, read about Sony continuing to integrate Bungie into PlayStation Studios. And don’t forget to sign up for our weekly newsletter.




Not surprised. Now Avalanche Studios needs to go to WB please finally make a Superman game and a Jonah Hex game get Joe Kelly to assist with story on Superman. Also make a cel shaded Generator Rex game with Joe Kelly as well. State Of Decay 3 bet that will get canceled next and Undead Labs closes.
No surprise everyone at the Xbox division not Activision should be fired. Activision should be in charge of gaming now at Microsoft. Halo Studios, Compulsion, Coalition, Turn 10, Rare, Ninja Theory, Undead Labs, InXile, Obsidian, they should all be shut down! Arkane as well. Tango and Roundhouse never should have been closed/sold off. This is a repeat of Xbox One announce games and they get canceled. Don’t blame Activision or Bethesda this is Xbox leadership problems Phil, Sarah, Aaron, and Matt fire them all!
Microsoft needs to fix this and buy Take Two Interactive. GTA 6 will be delayed to 2027 when that happens make it a Game Pass day 1. Under Trump the deal would go through and the annual sports titles are what will really push Game Pass over the hump.
Somebody else needs to buy Microsoft at this point, it’s beyond ridiculous. Whoever are laying people off need to lay themselves off, games be in development for so long just to get cancelled, like XDeadfiant, what a waste that was, had the best idea but the worst trash dev team known to man, I mean who puts out a PvP on a MMO server then tells the fans it wasn’t rushed lmao yea & bull sh*t doesn’t stink lmao. State of Decay 3 is the game that’s gonna get them money so while I don’t initially think it will be cancelled, I wouldn’t be surprised cause Microsoft is ran by a bunch of brainless morons who have no business there. They also have been dead silent more then Batman in the shadows, Microsoft is in shambles. Things needed to change two years ago so it definitely needs to change now.
Sidenote: They can keep GTA 6, I’ve had a lifetime with 5 & got sick of it, yes the updates made new things but I’m not interested in any like that, I’m just sick of the game. GTA 6 look like a step down, from 3 protagonist to 2. State of Decay is the game I’m waiting for if it ever gets released.