Following a mass layoff of 9,000 by Microsoft and the cancellation of several game projects, Avalanche Studios has announced a pause in development for their 1970s-themed smuggling simulation, Contraband. This project, which was in collaboration with Xbox Game Studios, is currently on hold as the team assesses its future.

“Over the past several years, Avalanche Studios Group and Xbox Game Studios Publishing have collaborated on Contraband,” the studio stated in a recent update. “Active development has now stopped while we evaluate the project’s future. We’re thankful for the excitement we’ve seen from the community since we announced and will give an update on what’s next as soon as we can.”

Although specific details about Microsoft’s involvement in this decision are scarce, reports suggest it was influenced by Xbox’s recent restructuring. Prior reports indicated that Xbox’s publishing division faced significant changes amid the layoffs.

In addition to Contraband, there have been rumors of the cancellation of other major gaming projects, including the much-anticipated Perfect Dark reboot and an unannounced MMO developed by ZeniMax Online Studios, adding to the uncertainty surrounding Microsoft’s gaming ambitions.

The situation echoes the recent struggles at Romero Games, which also indicated financial challenges following Microsoft layoffs. As of now, the gaming community waits for further updates on Contraband and whether it will continue development or remain indefinitely paused.

Contraband
(Image credit: Microsoft)