It’s official: Contraband is no longer moving forward in active development. This revelation first broke via Stephen Totilo’s Game File newsletter, which highlighted that the highly anticipated project from Avalanche Studios has hit a major roadblock.
Avalanche confirmed the news, stating, “active development has now stopped.” The studio, known for its work on the Just Cause series, had aimed to launch an open-world co-op title set in the 1970s. Though it premiered with an exciting cinematic trailer at E3 2021, fans have seen no new content in the four years since.
While Microsoft declined to comment directly on the game’s status, a source informed Game File that production had been ongoing for five years but is now “on hold.” Avalanche chose its words carefully, confirming the project’s pause without labeling it as outright canceled.
The statement from Avalanche reads: “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.”
At its initial reveal, director Omar Shakir described the title as the studio’s “most ambitious and spectacular game to date,” stressing their dedication to creating vast, stunning open worlds filled with memorable gameplay moments.
This news not only adds to the list of recent setbacks for Microsoft but also comes on the heels of significant layoffs within its gaming division. Phil Spencer, head of gaming, noted that these cuts are aimed at increasing agility and effectiveness. This period of reevaluation has led to the cancellation of other long-anticipated titles, such as Rare’s Everwild and the updated Perfect Dark, along with its development studio, The Initiative.
Avalanche Studios, with a legacy of creating iconic titles like Mad Max and co-developing the electrifying Rage 2 with id Software, now faces an uncertain future regarding Contraband. Fans of the studio and the gaming community at large will be keeping a close eye on how this situation unfolds.