Post
Jason Schreier
‪@jasonschreier.bsky.social‬
BREAKING: Xbox is canceling Contraband, announced in 2021 from Avalanche Studios (Just Cause), after four years of radio silence, sources tell Bloomberg News. This news arrives weeks after a mass layoff in which Xbox canceled several other big titles.
August 8, 2025 at 1:56 AM
256 reposts
222 quotes
1.3K likes
OD, the collaboration between Xbox and Hideo Kojima, is still in development, a Microsoft spokesperson tells me.
I don't think canceling everything is a good business strategy but hey I am neither exec nor shareholder so what would I know
Microsoft is such ass They need to exit the games business
What a shock. At this point, might as well see what projects Xbot didn't cancel.
Microsoft. Is. Bad. For. The. Video. Game. Industry.
wrong Microsoft is bad AT the video game industry too
The worst Xbox news is always just around the corner.
Microsoft too busy with GenAI slop and helping Israel manage their genocide in Gaza to publish video games.
It's time to replace Spencer, I fear the studios under the umbrella may go the way of (and all other ghost studies under ) if we continue going down this route
When you’re Xbox and you haven’t cancelled a game on 5 days
Good thing the spend upwards of 100 billion dollars to buy up the industry so they could constantly close studios and cancel plans.
Jason when is the announcement coming for OD’s cancellation
Next month, they’ve been spacing out the cancellations to ease the anger.
It seems like Microsoft bit off more than they can chew when they went on that buying spree. Now all those companies who were excited for being acquired by Microsoft are now SOL and so are consumers.
microsoft did not buy avalanche studio
Ok, but it doesn’t mean that spending all that money to acquire other studios didn’t affect them and those that were laid off or shut down. It still had an affect.
Im not really getting the sense that the acquisition of activision has anything to do with the cancellation of a game announced in 2021 that has been radio silent since.
I've asked this once, and I'll ask again: what is seriously the point of owning an Xbox console at this point? I don't mean having XBL or Game Pass, I mean why should I as a consumer buy an Xbox console or really anything Xbox if Microsoft is just cancelling games?
You wouldn't be saying that if the Xbox had exclusives.
I have a PC. Those games just don’t interest me and wouldn’t factor into a purchase
Microsoft hates have exclusives/reasons to buy their consoles.
how are we supposed to boycott them if they kill more games than they make
And people want to say Nintendo is bad. Like at least they never fucking canceled games/shut down companies.
They did cancel a bunch of games throughout their history, including games that have gone gold (such as Star Fox 2). The thing is that they don't announce them beforehand, but we have several insider stories about unannounced games being cancelled. It's quite normal, unfortunately.
Yeah this and Everwild didn't surprise me at all given we knew literally nothing about either Perfect Dark's cancellation STILL makes me incredibly angry
The Perfect Dark one is wild to me. I think back to Metroid Prime 4 and how Nintendo didn't like the direction it was going so they took it from one dev and gave it to another. Years of development time. To straight up cancel Perfect Dark tells me things are worse at Xbox than we probably realize.
If by worse you mean dumping loads of money into a useless sector like AI, then sure. They could easily bankroll all of these projects if they actually wanted to.
Contraband thing not surprising to me at all. Thank you for reporting, Jason.
It's starting to feel like Xbox has cancelled more games than released recently.
I get the sentiment, Microsoft is an awful company, but Xbox has put out more games than anyone in the past couple of years with probably 10+ more next year.
Why didn't they just announce this with all the other cancelations and layoffs? Do they have to announce new bad news twice a month like they do new Game Pass games?
I kept googling for updates on this game every year when I randomly remembered it. was baffled by the silence. bummer ...
Hi, do you know how advanced the game development was? Do you know anything about the contract between MS and Avalanche, like if they can keep the project and publish it themself or via someone else?
I stopped getting excited about Xbox first party games a long time ago, there's just no guarantee that any of them will ever come out.
Gonna pass on Xbox next console I think and I’ve bought since first Xbox
If everything is an Xbox, then nothing is an Xbox!
Xbox has to be horribly mismanaged. For such a huge publisher to fumble continuously is baffling.
What’s the status on State of Decay 3?
Damn... Xbox is just out here cancelling all the games keeping me interested in them.
You might be the only person in existence who was still interested in Contraband
Moreso the Perfect Dark & Everwild cancellations, but just add another on the pile here. What a mess they're in over there.
It sucks, i hate it, but they still have over 40 games in active development so I don't know that it's a 'mess'
Disappointing, but the least surprising news.
Really tired of this, what's the point in buying an xbox based on these interesting games they revealed only for them to cancel almost all of them? I will not be joining the next game generation as an early adopter, it has become a joke.
It certainly seems like Microsoft is killing off the Xbox brand, they just haven't admitted as much yet. There are contracts that need to be fulfilled before they can do so is my guess. There is zero reason to buy an Xbox ever again. What a sad way to go out: sacrificed to pay for middling AI.
I've always favoured their console and online infrastructure and focus on multiplayer games. Without that, they're hopeless and I may as well buy a PC and attach it to the TV. Gamepass still makes a lot of sense to me, so Playstation wouldn't be a good replacement. Maybe it's what they want.
thats one way to force people to adopt windows 11 and keep those billions of users constantly growing i guess 🫠
4 years and all we saw was a teaser. Hardly shocking
Helldivers 2 took 8 years. Metroid Prime 4 has taken at least 8 years. GTA6 started development roughly 300 years ago, according to social media's feelings of how long it has taken. Dev time doesn't mean wasted time.
Oh my god I've been periodically checking for any news on that game for four years only to hear this
When do they cancel Fable? Sure feels like MS is trying their best to exit the video game developing business.
They are an utter cancer on the industry.
Starting to think Microsoft canceling all these games and laying off all these devs might be a net loss for the gaming industry. Who's to say, though. 🤷‍♂️
This is probably going to get buried but is there any news, like any at all, on what Toys for Bob are working on (supposedly collaborating with Microsoft)? Is it cancelled or still in development?
Jason, this bad news is depressing. Hear me out, let’s just make up some good news and pretend everything is fine, great even.
what the fuckkkkk, this sucks i hope they make a just cause game again
As if many of us needed more reasons to not support Microsoft.
At what point is AAA game dev just dead? (Mostly rhetorical)
This has to be BY far the worst Xbox generation of all time. It will make you wish you were back for the Xbox One era.
It feels like everything that isn't CoD has been cancelled for nearly 5 years and they're only now telling us.
Almost everything announced but not recently shown is toast....state of decay 3 kinda quiet, that next?
I wasn't even following Contraband, but this is just more validation that moving back over to PS5 was a good move. I started to move to PS5 when they shut down Arkane Austin and Tango Gameworks.
I don't use my PS5 much (at least atm, GTA VI will change that) but given how Nintendo positions itself and how much Xbox is floundering it doesn't even feel like the console market exists anymore.
I've actually moved quite a bit to Switch since getting a Switch 2. Mostly for games that aren't really graphic heavy and don't benefit from the PS5 Pro (my main console now). Plus I love the ease of going from the TV to portable. And I have less concerns about games running well on Switch 2.
The hits just keep on coming...😒
Wait, at this point what big projects do they even have running? A hypothetical Elder Scrolls 6?
So Fable is probably never gonna release, huh?
We could've had a new game from the Just Cause guys? Dammit Xbox!!!
microsoft is actively participating in genocide in gaza, boycott all their products including xbox
microsoft suctioning up 4 years (at least) of avalanche's time is such a travesty
It was co- op game and right now that’s a iffy thing as single player games seem to be still what many want
Wonder how much larger of a bonus will Phil and company get this year after this news...
Does Microsoft realize the only way to make money on games is to actually release the games?
Is anyone even sorta surprised? We didn't see anything besides a logo trailer and if they were already cutting the cord on their own internal studios (rip Perfect Dark) - this is a no-brainer. OD, however, has Kojima attached to it so they'll likely keep it. Hope more MS studios unionize.
Again... they BOUGHT EVERYTHING... then KILLED it all in the ultimate EA style move! And im sure this HAS to make sense in the "business" world, some sort of Warner Bros / The Producers tax write-off, but... WHYYYYYY?!? Why you do this ?!?
I still don’t know what genre Contraband was even supposed to be. No shit it got canned after four years of nothing.
The only thing I remember about it was getting disappointed when I realized it was going to be multiplayer
What is Avalanche working on then now? Going back to Just Cause or will there be lights out in the next studio soon?
‪Holy shit dude. Is Avalanche done for? This was the only thing coming out of them since Just Cause 4 in 2018. Is there anything regarding a potential sequel at least?
Might as well append "This news arrives weeks after a mass layoff in which Xbox canceled several other big titles." to every post you make from now on.
I have a tangentially-related question: let’s say I wanted to use a piece of yours as a text for a class in a business-oriented high school…which piece(s) might you recommend?
So is it the studio that was radio silent to Microsoft? Hmmm??? 🤔
Xbox will die in the next five years, and Microsoft will go 3rd party. That's not good. More competition is good for any industry and losing Microsoft on the hardware front will hurt.
I would have guessed this over perfect dark, still sucks for everyone involved