Remember when the upcoming Xbox exclusive fromAvalanche Studios, developers of the Just Cause franchise, looked like it wasavoiding the recent string of cancellations? Good times.
Today, the studio put out an update confirming the game has indeed been canceled. Three months afterAvalanche was actively hiring developers for the project, the game is no more.
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Here’s to hoping that these anticipated Xbox games survive Microsoft’s recent layoffs and cancellations.
“Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on Contraband,” they said in astatement. “Active development has now stopped while we evaluate the project’s future. We’re thankful for the excitement we’ve seen from the community since we announced and will give an update on what’s next as soon as we can.”
At this time, it’s not currently known if Avalanche is undergoing layoffs as a result of Contraband’s cancellation.
2025 Has Been A Year Filled With Layoffs and Cancellations For Microsoft
As layoffs, cancellations, and studio closures become an unfortunate norm in the gaming industry, Microsoft has been at the forefront of these developments.
In July,Microsoft cut nearly 9,000 jobs, equating to 4% of its workforce, with many of those coming within the Xbox division. Earlier this year,Microsoft laid off another 7,000 employees.
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No retirement party for Phil yet.
Meanwhile, Phil Spencer, CEO of Microsoft Gaming, says that “Our platform, hardware, and game roadmap have never looked stronger.” I can’t help but find it ironic that the Xbox game roadmap looks stronger than ever while countless games are being canceled. Sure, all we saw from Contraband was a teaser clip from four years ago, but still, Avalanche has a strong pedigree as a studio, and there was a lot of excitement over its potential.
Microsoft spent a lot of money over the past couple of years acquiring major studios and publishers, but has little to show for it. It’s gotten to the point where fans are getting nervous about the status of Fable,which was delayed to 2026 earlier this year. For a company that’s falling behind both Sony and Nintendo, they continue to make news for all the wrong reasons.
Contraband
