Microsoft Weighs Closing Arkane and Canceling Blade as Xbox Reset Targets 5 Studios
Updated
Updated · Game Informer · Jun 30
Microsoft Weighs Closing Arkane and Canceling Blade as Xbox Reset Targets 5 Studios
3 articles · Updated · Game Informer · Jun 30
Summary
Arkane Studios is under consideration for closure or sale, and Marvel’s Blade could be canceled, according to The Verge, making the Lyon-based developer the fifth Xbox studio named in the reported reset.
Blade was internally pushed to 2027 from a planned later-2026 debut and is reportedly over budget, factors tied to Microsoft’s review of Arkane and broader gaming cuts.
Five studios have now been identified in reports—Compulsion, Double Fine, Ninja Theory, Undead Labs and Arkane—while even teams that remain open are expected to face layoffs.
Arkane came to Xbox in Microsoft’s 2021 ZeniMax deal; its U.S. branch, Arkane Austin, was shut in 2024 after Redfall, underscoring the pressure on Bethesda-linked studios.
Any formal move could come next week around Microsoft’s end-of-quarter financial calls, when the company is expected to address the reported Xbox restructuring.