Microsoft’s Xbox publishing division has halted active development of “Contraband,” the cooperative open-world smuggling game that Sweden-based Avalanche Studios first announced in 2021. Avalanche said development "has now stopped while we evaluate the project’s future," confirming earlier reports that the long-silent title had been put on hold after roughly five years in production. The move extends a string of cancellations that followed Microsoft’s July workforce reduction of about 9,000 employees. In the same portfolio review, the company scrapped Rare’s fantasy role-playing game “Everwild” and a reboot of “Perfect Dark,” and closed The Initiative studio. Microsoft has not detailed the reasons for shelving “Contraband,” and a spokesperson declined to comment beyond Avalanche’s statement. Suspending “Contraband” removes another previously promised day-one Game Pass release from Xbox’s lineup, narrowing the platform’s pipeline as it shifts resources toward titles such as “Call of Duty Black Ops 7” and “The Outer Worlds 2,” both scheduled for later this year. Avalanche said it will provide further updates "as soon as we can" once the project’s long-term prospects are assessed.