Insight into the Abandoned Co-op Project: All Revealed Details Regarding the Scrapped Game
In a surprising turn of events, Contraband, a highly anticipated co-op heist adventure game for Xbox Series X, has been officially cancelled as of August 7, 2025. This announcement comes after over five years of development and little public update since its 2021 announcement.
The cancellation is part of a broader strategic shift at Xbox, aimed at focusing on core growth areas and increasing organizational agility following significant layoffs. Avalanche Studios, the developers behind the Just Cause series and games like RAGE 2 and Renegade Ops, and Xbox Game Studios confirmed that "active development has now stopped while we evaluate the project's future."
The decision to cancel Contraband seems to be driven by resource constraints and restructuring rather than creative or technical failure. This is further supported by the mass layoff at Xbox affecting over 9,000 employees and the cancellation or pause of multiple other Xbox projects.
Alongside Contraband, Xbox also cancelled or put on hold other high-profile projects including Everwild, a new IP from Rare, and the Perfect Dark reboot. Additional undisclosed titles were impacted by the recent Xbox layoffs and restructuring. These cancellations suggest a significant reevaluation of Xbox’s game development pipeline in 2025, particularly around original and big-budget new IPs.
Contraband was set in a fictional world known as Bayan, a smuggler's paradise, in the 1970s. It was intended to be built on the next generation of the Apex Engine and was being developed by Avalanche Studios. The game's trailer was shown during the Xbox and Bethesda E3 2021 showcase, but no gameplay footage was ever released.
Game director Omar Shakir teased that Contraband was to be a "co-op smuggler's paradise" and the "most ambitious and spectacular game" from Avalanche Studios to date. The cryptic CG teaser for Contraband showed a map detailing the squad's heist plans, a base of operations, and a heist known as the "Sun River Job."
Despite the cancellation, fans of Avalanche Studios and co-op heist adventures will undoubtedly be looking forward to the studio's future projects. For now, Contraband remains a tantalizing glimpse into what could have been.
[1] GamesIndustry.biz (2025). Xbox cancels Contraband, Everwild, and Perfect Dark reboot
[2] Polygon (2025). Microsoft lays off over 9,000 employees, cancels several Xbox projects
[3] IGN (2025). Xbox cancels Contraband, Everwild, and Perfect Dark reboot
[4] The Verge (2025). Microsoft lays off over 9,000 employees, cancels several Xbox projects
[5] Kotaku (2025). Microsoft lays off over 9,000 employees, cancels several Xbox projects
- The gaming world was shaken when news broke about the cancellation of Contraband, an anticipated co-op heist adventure game for Xbox Series X, as confirmed by both Avalanche Studios and Xbox Game Studios.
- The cancellation of Contraband is part of a broader strategic shift at Xbox, with the company focusing on core growth areas and increasing organizational agility following significant layoffs.
- Alongside Contraband, several other high-profile games, such as Everwild and the Perfect Dark reboot, also had their development halted.
- Contraband, set in a fictional 1970s smuggler's paradise known as Bayan, was intended to be an ambitious and spectacular game, according to its game director Omar Shakir.
- Unfortunately, the cancellation of Contraband leaves fans of Avalanche Studios and co-op heist adventures eagerly awaiting the studio's future projects.
- The cancellation of Contraband, along with several other Xbox projects, is believed to be a result of resource constraints and restructuring following over 9,000 layoffs at Xbox.
- In the wake of these cancellations, there is a significant reevaluation of Xbox’s game development pipeline in 2025, particularly around original and big-budget new IPs, as reported by various technology, gadgets, and hardware news outlets.
