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Contraband Development Has Officially Been Halted

August 7, 2025 by Dennis Patrick

The future of the project is uncertain.

This past month was anything but positive for Microsoft. They recently went public and unveiled that they were downsizing quite a few employees. Unfortunately, the gaming division was also hit, and it saw a lot of studio employees being laid off. While some fans were hopeful their games would still be in active development, we were left wondering about the current status of Contraband.

After all, we saw several games killed off and even shutting down the entire studio, The Initiative. When the dust started to settle, we didn’t see anything about Avalanche Studios’ Contraband. As a result, some fans felt that maybe this game managed to escape the slaughter. However, that might not be the case.

Contraband Development Has Been Halted

BREAKING: Xbox is canceling Contraband, announced in 2021 from Avalanche Studios (Just Cause), after four years of radio silence, sources tell Bloomberg News. This news arrives weeks after a mass layoff in which Xbox canceled several other big titles.

— Jason Schreier (@jasonschreier.bsky.social) 2025-08-07T16:56:53.915Z

We’ve seen evidence that suggests the game was still in development. This came after the scare due to the discovery of its announcement trailer being pulled. Now, if you’re not aware, Contraband was announced several years ago. From the development team that delivered the Just Cause series, there has been very little information about what the studio was doing.

OD, the collaboration between Xbox and Hideo Kojima, is still in development, a Microsoft spokesperson tells me.

— Jason Schreier (@jasonschreier.bsky.social) 2025-08-07T17:07:01.814Z

That’s changing today as we first saw a report from industry insider and credible reporter, Jason Schreier, alerting their followers on social media that the game was canceled. They didn’t say anything else beyond that, but they did alert that OD hasn’t been dropped. OD is another project we haven’t heard much about. That’s the anticipated title still supposedly coming from famed developer Hideo Kojima.

Meanwhile, Avalanche Studios just released a statement on their website. All that was noted is that the production has been halted for the game. While they are not labeling it as a canceled title quite yet, they did note that they are looking at the project’s future. So, it’s sounding rather grim when it comes to Contraband. However, we’ll just have to wait and see if anything comes in the next few weeks regarding this game and any other future projects that Microsoft is publishing.

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Category: UpdatesTag: Avalanche Studios, Contraband, Microsoft

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