Microsoft Gaming Faces More Turmoil as Contraband Development Halts
The gaming division at Microsoft is undergoing significant changes, with another high-profile project now in jeopardy. Contraband, a co-op open-world game from Avalanche Studios, has reportedly stopped active development as Microsoft reevaluates its future. The game, first revealed at E3 2021 with a cinematic trailer, had generated excitement but has since gone quiet.
Avalanche Studios confirmed the pause in a statement, saying, Active development has now stopped while we evaluate the projects future. The studio expressed gratitude for fan enthusiasm and promised updates when available. The move comes amid broader restructuring at Microsoft, which has seen thousands of layoffs across its gaming teams.
Earlier this year, Microsoft announced 7,000 job cuts, followed by an additional 9,000 later in the summer. The gaming sector has been particularly affected, with multiple studios and projects either scaled back or canceled entirely. Among the casualties are several anticipated titles:
Everwild from Rare, a long-in-development adventure game, has reportedly been shelved.
The Perfect Dark reboot, led by The Initiative, was canceled, and the studio was shut down.
Blizzard Entertainment abandoned Warcraft Rumble, a mobile Warcraft spin-off.
Zenimaxs sci-fi looter shooter Blackbird was scrapped despite positive internal feedback.
An unannounced first-person shooter from Romero Games was also axed.
These cuts reflect Microsofts ongoing efforts to streamline operations, but they have left many in the gaming community concerned about the future of Xbox-exclusive projects. With Contraband now in limbo, fans are left waiting to see whether the game will be revived or join the growing list of canceled titles.
The broader impact of these layoffs and cancellations remains uncertain, but the trend suggests a challenging period ahead for Microsofts gaming ambitions. As the company continues to consolidate, more studios and projects could face similar fates. For now, players will have to wait and see which games survive the restructuring.
