Contraband Ceases Active Development

Developer Avalanche Studios will "evaluate" the future of the co-op title and "give an update on what's next as soon as we can."

Posted By | On 07th, Aug. 2025

contraband

After shelving Rare’s Everwild, The Initiative’s Perfect Dark and Zenimax’s Project Blackbird, Microsoft has seemingly pulled the plug on Contraband, Avalanche Studios’ co-op action-adventure.

On its website, the developer officially confirmed that “active development has now stopped while we evaluate the project’s future” and that it “will give an update on what’s next as soon as we can.” Its reveal trailer has also been privated.

Contraband was first announced in 2021 as an open-world co-op title set in 1970s Bayan, a fictional smuggler’s paradise, and had over 150 developers on it. It hasn’t received any news, updates or even gameplay since, and development troubles were reported last year. Avalanche would go on to cut 50 jobs and shut down two studios shortly after.

This shift arrives in the wake of mass layoffs, which severely impacted Microsoft’s Gaming division. The Initiative shut down while Undead Labs, Turn 10 Studios, and many more suffered cuts.

Amid all this is Microsoft CEO Satya Nadella revealing plans to expand even more into AI. The company formed a strategic partnership with OpenAI earlier this year, but has been investing billions into the company since 2019. Stay tuned for updates and other developments on Contraband’s status in the meantime.


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