Here’s the low‑down: Microsoft (Xbox) has officially halted development on Contraband — effectively cancelling it after four years of silence since its reveal at E3/Xbox & Bethesda Showcase in June 2021. Avalanche Studios, the team behind Just Cause, confirmed on 7 August 2025 that “active development has stopped while we evaluate the project’s future”
What was Contraband?
- A co‑op, open‑world action‑adventure game set in a fictional 1970s smuggler’s paradise, called Bayan
- Developed by Avalanche Studios using their in‑house Apex Engine, and set to be published by Xbox Game Studios, exclusive to Xbox Series X/S and Windows (with a planned day‑one Game Pass launch)
Why did it get cancelled now?
- After its reveal in 2021, the game went dark. No updates, no gameplay. Just a cinematic trailer
- Microsoft’s gaming division recently cut 9,000 jobs (around 4% of its workforce), cancelled several other ambitious projects (Everwild, Perfect Dark, Project Blackbird, among others), and scaled back its publishing team (
- In Avalanche’s own words: development has paused as they determine whether the project is worth moving forward
What the media is saying
- Game File notes the cancellation amidst “Xbox publishing cutbacks,” and highlights that the Cinematic trailer had recently been privated on YouTube (Game File).
- Polygon frames the decision as part of a broader pattern — another Xbox exclusive shelved like Everwild and Perfect Dark (Polygon).
- Meristation paints 2025 as a particularly rough year for Xbox, outlining the layoffs, cancellations, and uncertainty — though it confirms OD (Kojima’s game) is still active (Diario AS).
FAQ
What happened to Contraband, the Xbox exclusive?
Xbox officially stopped development on Contraband as of August 2025. Avalanche Studios said the project is on hold while they “evaluate its future”
Was Contraband ever shown beyond the cinematic trailer?
No. Since its 2021 announcement, Contraband never showed gameplay footage. Xbox released only a cinematic teaser, which has since been removed.
Why is Microsoft cancelling so many Xbox games?
Microsoft has been restricting its gaming division, leading to layoffs and project cancellations. Titles like Contraband, Everwild, and Project Blackbird were shelved as part of this strategy shift.
