Xbox has suspended development on Contraband to "reevaluate the project's direction," following a Bloomberg report indicating the game has been canceled four years after its initial E3 reveal.
Bloomberg reporter Jason Schreier first shared the news on Bluesky, stating: "Xbox is canceling Contraband, the 2021-announced title from Avalanche Studios (Just Cause), after four years of silence, according to sources speaking with Bloomberg News."
The report was later confirmed by Avalanche through an official website statement, which reads:
In recent years, Avalanche Studios Group and Xbox Game Studios Publishing have partnered on Contraband. Active development is currently on hold as we assess the project's next steps. We appreciate the community’s enthusiasm since the initial reveal and will share more details as soon as possible.
Contraband was first announced for Xbox and PC during E3 2021 with a teaser trailer. Set in the 1970s smuggler’s haven of Bayan, the game was introduced without any gameplay footage. Since then, there has been no new information or visible progress on its development. However, it was previously reported that in 2022, internal conflicts arose over a controversial hiring decision and communication issues, ultimately leading to the formation of a union at the studio and efforts to secure a collective bargaining agreement.
Meanwhile, Xbox has been scaling back projects following last month's large-scale layoffs, which saw 9,100 jobs cut across Microsoft, including hundreds in its gaming division. In the wake of these changes, titles such as Everwild and Perfect Dark have also reportedly been canceled.
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