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Microsoft Cancels Contraband

Unfortunately, it appears the highly-anticipated cooperative open-world action game Contraband by Avalanche Studios and Microsoft Gaming is no longer in active development – at least for now.

Carlos Mendoza · 2 min read

Microsoft Halts Development of Avalanche Studios' Contraband Amidst Game Challenges

Reports indicate that Microsoft's cooperative open-world action game, Contraband, by Avalanche Studios, may not proceed as planned. While Stephen Totilo of Game File reported the game's cancellation, Avalanche Studios confirmed that active development has paused. This title, initially announced in June 2021 and set in the 1970s, had released little public information since its reveal. Microsoft has not commented on Contraband's status. Game File further reported that Contraband's development began in 2020 and is now suspended. This places it among other recent project challenges for Microsoft, including Everwild and Perfect Dark. Avalanche Studios clarified their position by stating, "Active development has paused while we evaluate the project's future," deliberately avoiding the term "canceled" and suggesting the possibility of a future revival. The situation with Contraband underscores the challenges in AAA game development at Microsoft.

In Case You Missed It

If you're a fan of Sea of Thieves and eager to know what the future holds for this beloved pirate adventure, be sure to check out Ahmed Hassan’s insightful post from July 12th, where he dives into Rare's recent announcements about major changes coming in early 2026. From private servers with customizable settings to new seasonal content like Smugglers' Tide and Devil's Roar, there's plenty of exciting updates on the horizon! Sea of Thieves to Undergo Changes in 2026 to see how Rare plans to keep the high seas filled with adventure and surprises. For gaming enthusiasts who are curious about recent developments in the industry, Jonathan Dubinski’s latest piece on Players for Life dives into Microsoft's surprising decision to cancel Contraband, an Xbox exclusive project by Avalanche Studios. The article, published on August 7th, explores how this move fits into the broader context of cost-cutting measures and their impact on both developers and players alike. If you're interested in understanding why such high-profile projects sometimes face uncertain futures, be sure to check out Microsoft Cancelled Development of Contraband by Avalanche Studios. For fans of Hideo Kojima’s innovative work in gaming, we have some exciting news! Marcus Thompson’s recent post on Players for Life, “OD Safe from Microsoft's Clean-Up” (published August 7, 2025), reveals that the highly anticipated horror game collaboration between Xbox and Jordan Peele is still going strong. Despite recent project cancellations by Microsoft, OD remains untouched, promising a divisive yet impactful experience in the gaming world. Marcus also sheds light on Kojima’s new espionage game with PlayStation. Dive into this insightful piece to learn more about these developments OD Safe from Microsoft's Clean-Up.

// The Friday recap

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Game info

Official Name
Contraband
Brief Summary
Welcome to Contraband, a co-op smuggler’s paradise set in the fictional world of 1970s Bayan.
Platforms
PC (Microsoft Windows), Xbox Series X|S
Play Modes
Co-operative
Content Rating
RP
Languages
English, Korean
Genre
Avalanche Studios
Genre
Xbox Game Studios

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