Xbox Kills Contraband Development

Amid the layoffs, Xbox has apparently halted the development of Avalanche Studios’ Contraband. We never even saw any gameplay.

Jason Schreier shared the news on Bluesky, stating the game, which was announced in 2021, was killed by Xbox. Of course, it was pretty quiet in terms of its development, which can either mean the studio is all-in on development or it has nothing to show and it could be a money pit.

BREAKING: Xbox is canceling Contraband, announced in 2021 from Avalanche Studios (Just Cause), after four years of radio silence, sources tell Bloomberg News. This news arrives weeks after a mass layoff in which Xbox canceled several other big titles.

— Jason Schreier (@jasonschreier.bsky.social) 2025-08-07T16:56:53.915Z

To be clear, entering a 70s-inspired smuggler’s paradise sounds cool, especially with the developer of Just Cause at the helm, but it does seem the studio was dealt a bad hand. Xbox has been shutting down projects left and right, with the most notable in recent times being the Perfect Dark remake and Rare’s Everwild.

What do you think? Are you disappointed Contraband will never see the light of day? Let us know below!