Microsoft has halted progress on Avalanche Studios' game, Contraband

Development on Microsoft's forthcoming shooter, Contraband, has been suspended.

The information was first reported by Stephen Totilo on Game File, although Microsoft and the game's developers at Avalanche Studios have not yet commented officially.

The report suggests that both Avalanche and Microsoft have not issued statements, but a source "familiar with the matter" indicated the project is currently "on hold." Additionally, the game's announcement trailer was allegedly made private on YouTube a few weeks ago.

The reasons for this suspension remain uncertain. It could be linked to the 9000 layoffs at Microsoft's gaming division on July 2. Initially, it was believed that only Everwild and Perfect Dark were canceled due to these cuts. However, it later emerged that the reductions also affected Xbox's publishing department, impacting an unannounced FPS by Romero Games and the closure of Forza Motorsport developer Turn 10.

In a 2021 interview, Avalanche Studios' then-CEO, Pim Holfve, expressed optimism about their collaboration with Microsoft, citing it as a promising experience due to the unique support and hardware access provided by the partnership.

Recently, Microsoft announced The Outer Worlds 2's pricing strategy, initially setting the game at $80. However, this decision was quickly retracted, with the game now set to be released at $69.99, aligning with standard AAA game pricing.