As part of sweeping Xbox layoffs planned to start on July 6, Microsoft is considering shutting down Arkane Studios and canceling the Blade game its been working on since the end of 2023, according to Tom Warren at The Verge. Combine this with previous reports from Bloomberg and GamesBeat, and it looks like Microsoft is preparing to close or sell off five studios next week: Compulsion Games, Double Fine, Ninja Theory, Undead Labs and Arkane.
There hasn’t been an update on Marvel’s Blade in more than two years, despite our quiet anticipation, and Verge reports that the game is over budget and facing delays. Xbox is exploring options to sell Arkane, similar to its reported approach with Compulsion, Double Fine, Ninja Theory and Undead Labs.
The entire Xbox division is bracing for layoffs following a memo from new CEO Asha Sharma and Chief Content Officer Matt Booty that warned, “We have found ourselves over-extended…. Going forward, this cannot continue.” Xbox union members represented by CWA have expressed their disappointment and frustration with Microsoft leadership ahead of the firings, calling for good-faith negotiations and transparency.
Arkane Studios is better known as Arkane Lyon, the maker of the Dishonored series and Deathloop, and the team is known for crafting polished first-person stealth experiences in stylish environments. Microsoft shut down Lyon’s sister studio Arkane Austin, which was responsible for Prey (yay) and Redfall (oh no), as part of a wave of Xbox layoffs and studio closures in 2024.Â
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