Contraband, the long-silent co-op title from Avalanche Studios, has reportedly been canceled by Xbox following years of silence and recent internal cuts.
Contraband, the co-op open-world title from Avalanche Studios, has officially hit a dead end. First revealed during the Xbox & Bethesda showcase back in 2021, the game was pitched as a “smuggler’s paradise” set in the fictional world of Bayan during the 1970s.
It was meant to be a big co-op experience, with flashy cars, heists, and a lot of player freedom. But after that flashy teaser and some early chatter, it pretty much disappeared from the spotlight.
Now, after four years of near-complete silence, the game has reportedly been canceled. That’s according to a new post from Bloomberg’s Jason Schreier, who shared the news on Bluesky, citing sources familiar with the decision.
Avalanche’s Contraband Canceled By Xbox
According to the report, Microsoft made the call to shut down development on Contraband. Avalanche had been quietly working on the game since its announcement, but updates were non-existent, and even the original trailer was removed from YouTube earlier this year.
The official description for the game reads: “Welcome to Contraband, a co-op smuggler’s paradise set in the fictional world of 1970s Bayan, brought to you by Avalanche Studios and Xbox Game Studios, and exclusive to Xbox Series S|X consoles and coming to Xbox Game Pass, Steam, and Windows 10 PC.”
Avalanche Issues Official Statement
Shortly after reports of the game’s cancellation began circulating, Avalanche Studios Group shared a brief statement confirming that active development on Contraband has stopped, though it stopped short of calling it a full cancellation.
“Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on Contraband. 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.”
The language leaves room for a potential return, but for now, the game appears to be on indefinite hold.
This cancellation comes just weeks after a massive round of layoffs at Microsoft, which saw nearly 9,000 employees let go across different teams. Several unannounced games were also reportedly scrapped, including Rare’s long-troubled Everwild and ZeniMax Online’s mysterious MMO project codenamed “Blackbird.”
The past year hasn’t been easy for Xbox, especially when it comes to internal studios and long-term projects.
What do you think about Contraband being canceled after all this time? Let us know your thoughts below.
