Xbox Scraps Contraband from Avalanche Studios
The highly anticipated co-op game, Contraband, developed by Avalanche Studios Group and published by Xbox Game Studios Publishing, has officially been canceled. The news was initially reported by reputable journalist Jason Schreier and later confirmed by Avalanche Studios themselves.
Contraband was first revealed with a cinematic trailer during the Xbox & Bethesda Showcase in the summer of 2021. Pitched as a service game, it promised a "co-op smuggler's paradise" set in a fictional Southeast Asian region during the 1970s. Game Director Omar Shakir had described it as "the most ambitious and spectacular project in the studio's history," built on the Apex Engine. However, despite this grand vision, official details about the project remained scarce over the past four years, leading to much speculation.
Rumors of the cancellation began circulating after Jason Schreier posted on Bluesky, citing his sources. These reports gained further credence when the official announcement trailer for Contraband was quietly removed from Xbox's YouTube channel. Following this, Avalanche Studios Group issued a statement on their website, confirming the halt in development: "Over the past few years, Avalanche Studios Group and Xbox Game Studios Publishing have been working together on Contraband. Active development has ceased as we evaluate the project's prospects. We are grateful for the excitement the community has shown since the announcement. We will communicate further plans as soon as possible."
This decision appears to be part of a larger restructuring effort by Microsoft aimed at reducing costs across its gaming division. In recent times, there have been several high-profile project cancellations and studio closures, including reports of the `Perfect Dark` reboot being scrapped alongside the closure of The Initiative studio, the cancellation of Rare's `Everwild`, and an unannounced MMORPG from the creators of `The Elder Scrolls Online` at Zenimax Online. Amidst these changes, Schreier did confirm that `OD`, the collaboration between Xbox and Kojima Productions, is still very much in production.
For players, the cancellation of Contraband means another highly anticipated title from the Xbox ecosystem will not see the light of day. While it's disappointing to see a promising concept like a 70s co-op smuggler game disappear, the lack of information since its reveal four years ago might have been an early indicator of troubled development. For Avalanche Studios, known for titles like the Just Cause series, it's a setback, but their track record suggests they will likely move on to new projects soon.
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