Microsoft Officially Halts Contraband Game Development

Microsoft and Avalanche Studios have officially halted active development on Contraband, a cooperative smuggling game announced as an Xbox exclusive in 2021. The game never progressed beyond its initial cinematic reveal and is now highly likely to be fully canceled. This move comes amid mass layoffs and significant restructuring within Microsoft's gaming division, which has also led to the cancellation of other projects like Perfect Dark and Everwild. Avalanche Studios, known for the Just Cause series, has faced its own layoffs and internal challenges. The decision reflects ongoing turbulence and resource refocusing within Microsoft's gaming strategy. Despite these setbacks, Xbox Game Studios continues to collaborate with other external partners on new projects.