Today, it has been reported that Microsoft has cancelled `Contraband,` a game developed by Avalanche (known for `Just Cause`), which was initially slated as a day-one release for Game Pass. Reporter Jason Schreier confirmed this news, citing anonymous sources. `Contraband` was intended for release on PC and Xbox Series X|S.
Conversely, Stephen Totilo from Game File indicated that Avalanche has merely `halted active development` on `Contraband,` avoiding the term `cancellation.` His report suggested the project is `on hold,` having been in development for five years according to a source.
Unveiled in 2021, `Contraband` was promoted as a co-operative smuggling experience set in a fictional 1970s world. Its reveal trailer famously featured Steely Dan`s song `Do It Again,` released in the early `70s.
Despite these reports, job listings for `Contraband` are still present on Avalanche`s website, and the official game pages on Xbox and Avalanche`s sites remain active, though these are likely to be updated soon.
This purported cancellation of `Contraband` follows recent significant layoffs at Microsoft, impacting 9,000 employees, with many cuts affecting Xbox divisions. These reductions have resulted in other game cancellations and at least one studio closure. Reports indicated that Microsoft was undertaking a portfolio review, potentially halting or defunding certain projects. However, it`s worth noting that Hideo Kojima`s new game, `OD,` is still reportedly in active development.
Other recently canceled Xbox titles include Rare`s `Everwild,` the `Perfect Dark` reboot (which also led to a studio closure), and an unannounced MMO from ZeniMax Online Studios.
These drastic measures by Microsoft occurred despite the company`s flourishing business, a phenomenon CEO Satya Nadella described as the `enigma of success.` These cutbacks coincide with Microsoft`s substantial and increasing investment in artificial intelligence, with recent pledges rising from $80 billion to $120 billion for AI initiatives.