Following a recent wave of Microsoft layoffs and cancellations,Xboxhas reportedly canceled another planned exclusive. In recent years, Xbox’s strategy relied heavily on purchasing or building partnerships with studios to assemble a strong exclusive library, but 2024 and 2025 have revealed a significant pivot. 2024 saw the closure of Xbox-owned studios like Arkane Austin and Tango Gameworks, and in July 2025,Microsoft canceled titleslike aPerfect Darkreboot and Rare’sEverwild.
Xbox has now canceledContraband, as reported byJason Schreieron Bluesky.Contrabandwas set to be the next game from Avalanche Studios, the developer behind the iconicJustCauseseries. In a follow-up tweet, Schreier confirms that Hideo Kojima’s Xbox collaborationODis still in development, addressing concerns that have cropped up periodically since Xbox’s July cancellations.
Canceled Xbox Exclusive Contraband Was A “Co-Op Smuggler’s Paradise”
A Different Offering For Just Cause Fans
Details onContrabandhave been sparse since its announcement at E3 in 2021, butAvalanche’s official website describes the game as a"co-op smuggler’s paradise set in the fictional world of 1970s Bayan."
It sounds like it could have delivered a co-op take on something similar toJust Cause’s chaotic appeal. WhileJust Cause 2and3had relatively popular multiplayer modes, they were fan-made mods rather than official offerings.
AContrabandteaser trailer suggested the possibility of planning heists, indicating that the game could have involved a more tactical approach thanJust Causetends to.Avalanche Studios hasn’t released a game since 2019’sRage 2, published by Bethesda Softworks, leaving its future endeavors unclear afterContraband’s cancellation. Associated studios Expansive Worlds and Systemic Reaction, meanwhile, respectively releasedCall of the Wild: The AnglerandRavenboundin 2022 and 2023.
Contraband’s Cancellation Is More Disappointing Xbox News
Another Game Falls By The Wayside
It’s entirely possible thatContrabandwas struggling to come together during development.Just Cause 4andRage 2were both somewhat divisive titles, and Avalanche’s fantastic strengths in delivering adrenaline-pumping destruction haven’t always been paired with comprehensively strong game design.
All the same, it certainly sounds like it could have been fun, and it’s disappointing to see yet another Xbox project fail to come to fruition. Despite its recent partnerships with Bethesda and Xbox,Avalanche isn’t owned by Microsoft, so it might still have a better fate than Arkane Austin, Tango Gameworks, orPerfect Darkstudio The Initiative.
Xboxhas still published some fantastic titles recently, fromIndiana Jones and the Great CircletoDOOM: The Dark Ages.Hopefully, there will be a break from the bad news afterContraband’s untimely end, but I’m not going to count on it.
