Xbox and Avalanche Studios Halt Development on Co-Op Exclusive ‘Contraband’

The ambitious smuggler’s paradise, first announced in 2021, has had active development stopped as the teams evaluate the project’s future after more than five years of work.

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Shinji Ito Managing Editor
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Xbox and Avalanche Studios have officially stopped active development on their anticipated open world co-op game, Contraband. The news, which was first reported by Stephen Totilo of Game File, was confirmed in a statement posted to the Avalanche Studios website on Thursday, leaving the future of the Xbox exclusive title uncertain.

First revealed with a stylish cinematic trailer during the Xbox & Bethesda Games Showcase in 2021, Contraband was described as a “co-op smuggler’s paradise set in the fictional world of 1970s Bayan.” The title was in development as an exclusive for Xbox Series S and X consoles and PC, and was planned as a day one release on Xbox Game Pass. According to sources, the ambitious project has been in the works for more than five years.

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In their official statement, Avalanche Studios addressed the game’s status directly. “Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on ‘Contraband,’” the studio wrote. “Active development has now stopped while we evaluate the project’s future. 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.” While not an outright cancellation, the halt in development on such a high profile project is a significant and disappointing setback.

The news comes on the heels of a turbulent period for Microsoft’s gaming division, which saw widespread layoffs and the cancellation of some titles last month. While sources indicate that no jobs at the Xbox publishing division are being impacted by this specific decision, the move to pause Contraband will likely be seen as part of a broader re-evaluation of strategy at the company.

Despite this development, the Xbox Publishing team continues to work with a number of high profile external studios, including Kojima Productions, PlatinumGames, and Asobo Studio on other upcoming projects.

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