Development of Contraband by Avalanche Studios Put on Hold by Microsoft

Microsoft has halted the development of its upcoming game, Contraband, a shooter title. The news was broken by Stephen Totilo's Game File, although no official statement has been released by Microsoft or Avalanche Studios, the game's developer. According to a source familiar with the matter, the production has been put on hold. The Contraband announcement trailer was made private on YouTube a few weeks ago. The reason behind this pause is unclear, but it may be related to internal pressures or the recent layoffs in Microsoft's gaming division, which affected 9000 employees. Initially, it was believed that only two games, The Initiative's Everwild and Perfect Dark, were cancelled due to the cuts. However, it was later revealed that the layoffs also impacted Romero Games' unannounced FPS and Forza Motorsport developer Turn 10. In 2021, Pim Holfve, then-CEO of Avalanche Studios, mentioned that the company had a great relationship with Microsoft and found the partnership intriguing. Recently, Microsoft announced and then reversed its decision to retail The Outer Worlds 2 for $80, opting for the standard AAA price of $69.99 instead.