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Microsoft halts development on Contraband

Avalanche Studios confirms Contraband is on hold after four years of development.

August 7, 2025 at 06:07 PM
blur Microsoft has stopped development on Avalanche Studios’ Contraband

The anticipated game Contraband has officially stopped development after four years.

Microsoft halts development on Avalanche Studios’ Contraband

Microsoft has confirmed the halt of development for Contraband by Avalanche Studios. Initially announced in 2021, the game aimed to create a cooperative open-world experience set in the 1970s. While Avalanche had previously touted this as their most ambitious game, no substantial updates have been released since its reveal. The studio acknowledged that they are evaluating the project's future without detailing a specific timeline for updates. The pause in development comes amid broader layoffs within Microsoft's gaming division, which have impacted multiple projects, including Rare’s Everwild and Perfect Dark.

Key Takeaways

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Microsoft officially halts development on Contraband.
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Avalanche Studios confirms the project is on hold.
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Contraband was announced four years ago with no updates since.
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The game aimed to be a co-op open-world experience.
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Broader layoffs within Microsoft have impacted other projects.
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The gaming division's future direction remains uncertain.

"Active development has now stopped while we evaluate the project’s future."

Avalanche Studios acknowledges the pause in development.

"We’re taking everything we’ve learned from 18 years of game development."

Contraband director Omar Shakir on the studio's ambitions for the game.

The cessation of Contraband's development reflects a concerning trend within Microsoft's gaming sector. As the company undergoes significant organizational changes, including recent layoffs, the status of several high-profile projects hangs in doubt. This situation raises questions about the long-term viability of Microsoft's gaming ambitions. The industry's competitive landscape requires constant innovation and adaptation, and the abandonment of major titles could signal broader strategy shifts or resource allocation challenges.

Highlights

  • Contraband was set to be Avalanche's most ambitious game to date.
  • Microsoft's gaming layoffs are shaking the industry.
  • Is Contraband just another lost title in Microsoft's gaming strategy?
  • Avalanche promises updates as they evaluate Contraband's future.

Development Halt Raises Concerns

The suspension of Contraband's development highlights potential issues within Microsoft's gaming strategy, especially amid layoffs and project cancellations.

The future of Contraband and Microsoft’s gaming plans will become clearer in the coming months.

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