Overview

• Avalanche Studios Group and Xbox Game Studios Publishing announced on August 7 that active development on Contraband has stopped while they evaluate its future.
• The decision to pause work on the co-op open-world title did not lead to immediate layoffs at either Avalanche or Xbox.
• Contraband was first unveiled at the 2021 Xbox Games Showcase as a 1970s smuggler’s paradise but has seen no major updates since its reveal.
• Microsoft’s gaming division cut 7,000 jobs in May and another 9,000 this summer as it shifts resources toward AI and streamlines operations.
• Selected partnerships such as Hideo Kojima’s OD remain in active development, reflecting Microsoft’s focus on high-profile collaborations.