Contraband Could've Hit PS5, but Microsoft Pulled the Plug
Avalanche Studios' big open-world co-op game loses funding from Xbox, leaving its future uncertain.
News by Nusrat Choity on Aug 15, 2025
If you're hoping for an exciting open-world heist game from Microsoft, it's time to put away the blueprints. Microsoft has officially stopped giving money to Avalanche Studios to make Contraband, a cooperative open-world game. The title was once thought to be a bold new addition to the Xbox Game Studios lineup, but now it's in the "future uncertain" pile.
Sources say that the game was first announced as a joint effort between Avalanche Studios Group and Xbox Studios Publishing. It promised big maps, daring heists, and a focus on working together that could compete with some of the biggest co-op games on the market. Avalanche has confirmed that active development has stopped, though, even though there was a lot of excitement at first. They are now "evaluating the project's future".
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The official statement from Avalanche to the press sounds like a sad goodbye. The studio said they were aware of how excited fans were about Contraband since it was announced, but they didn't tell them that the project was dead. Instead, they left the door open and said updates would come "as soon as we can."
People who work in the industry say that this language could mean that the game isn't completely dead, but that Microsoft's funding arm has stopped working on it. In theory, Avalanche could pitch the project to other publishers, even those who don't work with Xbox. Contraband might come out on different systems, like the PlayStation 5. That's a surprising turn of events, since it started as an Xbox-only game.
Xbox Game Studios has been dealing with a lot of cancellations and changes within the company lately, so losing Contraband is a big deal. Microsoft's gaming division has cancelled or put on hold several projects in the past month, raising concerns about the company's long-term first-party strategy.
Contraband was never close to being released, but its idea got people talking early on. A big, open-world co-op game about pulling off complicated heists could have been a new addition to the Xbox lineup, giving players something different from shooters and racing games. Fans were ready to get their teams together and plan daring escapes. At least for now, those plans will stay on paper.
When Contraband was first teased, gamers quickly got excited about its promise of "cooperative open-world heist action". Avalanche Studios, which is best known for the Just Cause series, had the skills to make explosive gameplay and sandbox chaos. It seemed like a safe bet because Xbox had a significant influence as a publisher.
But making games is not always easy. Even projects with a lot of money and good teams can run into problems. Technical issues, changing creative visions, or changes in corporate strategy can all slow things down. In this case, Microsoft decided the game no longer fit into their plans, even though they had worked on it together for years.
The choice is a turning point for Avalanche Studios. They have to choose between putting Contraband on hold forever or finding a new home for it without Microsoft's help. If they choose the second option, the game's reach and marketing strategy could change a lot if it comes out on more than one platform.

But it's not easy to get a new publisher in the middle of development. It means re-pitching the project, changing some of its main features, and convincing investors that the game can stand out in a market that is becoming increasingly crowded. We don't know if Avalanche can pull off such a shift, but their statement shows that they are at least looking into it.
People have had different reactions to the news that the game is on hold. Some fans are still hopeful and believe that the Avalanche will find a new backer. Some people think this is just another case of Microsoft promising too much and not delivering on exclusive games.
There has also been talk on social media about whether Contraband was already in the works for other platforms before the funding cut. The idea that it might have come out on PS5 even if Microsoft wasn't involved makes it even more interesting.
The cancellation makes people wonder if Microsoft is committed to unique, risky projects. Big franchises like Halo and Forza still get support, but smaller or more experimental games are more likely to be cut from the budget.
Sony and Nintendo often invest in strange or niche games that help them build their brand in a competitive industry. Microsoft's recent moves could be seen as playing it safe. That plan might help the bottom line in the short term, but it could also turn off gamers who want a wide variety of games in their libraries.
If Contraband does find another publisher, Xbox could lose yet another exclusive game at a time when it's more important than ever to set consoles apart from each other. Gamers have always used exclusives to help them choose between platforms, and Microsoft's recent history doesn't give them much faith in their ability to keep games exclusive to their ecosystem.
Of course, the irony is that the premise of this game—putting together a crew, planning a dangerous heist, and then pulling it off—now mirrors the real-life process of making the game. Avalanche is trying to "steal" its match back from the vault and give it new life under new management.

Right now, everyone is watching Avalanche Studios to see if they will share more concrete news in the next few months. For now, Contraband is stuck in gaming limbo, a name that used to promise daring co-op adventures but now serves as a reminder of how quickly things can change in the industry.
Will the game come back under a new name, or will it join the long list of good ideas that never made it to the final cut? The next update will have to wait for fans. In the world of game development, though, even the best-laid plans can disappear like loot in the night.
Do you think Contraband can make one last brave escape from being cancelled, or has its last score already slipped away?
Senior Editor, NoobFeed
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