Microsoft has suspended development of Contraband, the ambitious cooperative heist title from Just Cause developers Avalanche Studios. Originally announced in 2021 as an Xbox Series X/S and PC exclusive, this 1970s-set open-world adventure has seen minimal updates since its reveal.

This marks another setback for Xbox's exclusive lineup, following the cancellations of Perfect Dark and Everwild. While a promising job listing in April 2025 briefly reignited hopes for the project, recent statements from the Swedish developer confirm production has been paused indefinitely.

Avalanche Studios' official statement acknowledges the halt in "active development" while the team reassesses the project's direction. The studio expressed appreciation for fan enthusiasm and promised updates when available. This confirmation follows Microsoft's major July 2025 restructuring that eliminated approximately 9,000 positions across Xbox divisions.

Industry reports indicate Xbox's publishing arm, responsible for third-party collaborations like Contraband, suffered particularly heavy losses in the layoffs. Key personnel including veteran producer Peter Wyse reportedly departed, leaving the project's future uncertain. Sources suggest no additional cuts are expected at Avalanche following this development pause.

Despite successful 2025 releases including Indiana Jones and the Great Circle, Microsoft's gaming division faces scrutiny over canceled projects. The scrapped Perfect Dark reboot and now Contraband's hiatus have diminished Xbox's upcoming exclusive roster. These developments may also impact Xbox Game Pass's lineup of day-one releases in the coming months.

The timing proves particularly awkward as Xbox prepares for Gamescom 2025 (August 20-24), where the company will showcase its collaborative handheld devices with Asus. Industry watchers now speculate whether Microsoft will address Contraband's status during the event.

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