Contraband, the 1970s-themed co-op smuggling game from Avalanche Studios, is no longer happening—at least in its current form. First revealed with a flashy trailer at Xbox’s E3 2021 showcase, it was pitched as a big Xbox Game Studios exclusive built around open-world exploration and heist-style teamwork. After more than four years in development with little public info, Xbox has officially pulled the plug.
Industry insider Jason Schreier confirmed Microsoft canceled Contraband as part of a broader shake-up in publishing plans. Avalanche later said “active development has now stopped while we evaluate the project’s future,” which is a softer way of saying it’s on ice unless something changes. Since it was under an Xbox publishing deal, the decision came from Microsoft, not Avalanche.
The move lines up with Microsoft’s recent restructuring, which has already seen other titles cut, delayed, or scrapped. Long development cycles are costly and risky—especially for a new IP with no guaranteed fan base—so Contraband likely didn’t make the priority list.
For Avalanche, best known for the Just Cause series, it’s a setback but maybe not the end. The concept could return in another form someday, but the Xbox-backed version is done, another victim of shifting priorities at Microsoft’s gaming division.
