Microsoft Cancelled Development of Contraband by Avalanche Studios

Development of Avalanche Studios’ Contraband on Hold Amid Microsoft Cost-Cutting Initiatives

Avalanche Studios announced it has put development of Contraband, an Xbox exclusive, on hold. The studio, known for the Just Cause series, shared this update on its official site, stating it will determine the project’s future direction. Avalanche thanked fans for their excitement since the announcement and promised to share updates soon. Avalanche Studios first revealed Contraband at E3 2021, planning it as a co-op open-world game set in the 1970s. A lack of updates since its initial teaser trailer suggested the project had encountered development challenges. At the time of its announcement, director Omar Shakir described the game’s open world as “the most ambitious and spectacular project our studio has ever taken on,” adding that Avalanche was “leveraging 18 years of experience in creating stunning, vast open worlds packed with amazing moments.” This decision is part of Microsoft’s broader cost-cutting initiatives, which have affected approximately 4% of its workforce, totaling over 9,000 jobs. Microsoft’s cost-cutting initiatives have also impacted the Xbox division, with studios behind games like Everwild and Perfect Dark experiencing setbacks, as has Turn 10, the developer of the Forza series.

In Case You Missed It

Exciting news for all Sea of Thieves enthusiasts out there! Ahmed Hassan recently delved into the details of Rare’s plans for the game in his insightful piece titled “Sea of Thieves to Undergo Changes in 2026” (published on July 12, 2025). The article outlines a wealth of upcoming changes and updates, from private servers and Custom Seas to new factions like the Smugglers and Dark Ancients. Dive into the full scope of these developments, which promise to shake up the high seas in the coming year, by checking out the detailed breakdown Sea of Thieves to Undergo Changes in 2026. If you’re a fan of Hideo Kojima’s enigmatic projects and the gaming industry at large, make sure to check out Sophie Laurent’s latest piece titled “Od Game by Kojima Survives Layoffs at Xbox” (published on July 8, 2025). The article delves into how Kojima’s mysterious project Od managed to survive recent layoffs at Xbox despite the cancellation of other high-profile titles. With Microsoft’s significant investment in AI infrastructure potentially altering the landscape for future projects like Od, this piece offers a fascinating glimpse into the uncertain yet promising future of one of gaming’s most anticipated collaborations. Head over to Od Game by Kojima Survives Layoffs at Xbox for more insights! As we delve into the challenges faced by Microsoft’s recent layoffs in the gaming sector, it’s worth noting an intriguing proposal from Xbox Game Studios Executive Matt Turnbull. In a LinkedIn post dated July 5, 2025 (check out the full discussion Xbox Game Studios Executive Proposes AI for Laid-Off Workers to Navigate Crisis), Turnbull suggested leveraging AI tools such as ChatGPT and Copilot to assist laid-off employees in navigating their career transitions. This idea, while innovative, has sparked debate given Microsoft’s significant investments in AI technologies and recent project cancellations, including the Perfect Dark reboot and Everwild by Rare. Readers interested in exploring this topic further should definitely take a look at Carlos Mendoza’s insightful piece on Players for Life.

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Jonathan Dubinski

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