Avalanche Studios’ game, Contraband, has been abruptly terminated by Microsoft after four years since its initial announcement. This decision was reported shortly after discussions began regarding the project’s fate.

Originally unveiled in June 2021 during the Xbox and Bethesda Games Showcase, fans have been left largely in the dark about the co-op smuggling game ever since. In reaction to the cancellation, Avalanche Studios shared a message on their website, expressing their appreciation for the community’s enthusiasm since the game’s reveal: “In recent years, Avalanche Studios and Xbox Game Studios Publishing have worked together on Contraband. However, active development has now ceased while we explore future possibilities for the project. We will provide updates when we can.”

The cancellation of Contraband comes amidst broader personnel reductions and game cancellations within Microsoft’s global studios, which were announced in June. Microsoft’s CEO reaffirmed the company’s growth during this time, highlighting a strategic shift towards artificial intelligence.

In 2024, more than 100 developers at Avalanche Studios formed a union, although no layoffs related to Contraband’s cancellation have been reported as of now.