Arkane Studios, the developer behind the Dishonored series and the upcoming Blade, is among the studios Microsoft is currently considering closing down. That’s according to a new report from The Verge, citing sources familiar with the plan.
If true, Arkane would be the fifth Microsoft-owned studio to be in a similar position. It’s been previously reported that Compulsion Games, Ninja Theory, Double Fine, and Undead Labs are all in talks with the company to determine their fate. As a result, Araken’s upcoming Blade action game may be cancelled.
The report also says that layoffs are set to begin 6th July, following the close of Microsoft’s fiscal quarter. While at least those five studios are involved, cost cuts and redundancies are being made elsewhere across the division. Some of the affected studios could potentially merge with others, sold, spun-off to go independent, or be shuttered.
As for Marvel’s Blade, the game was reportedly originally set for release in late 2026, but was pushed back internally to late 2027. Sources told the outlet that it’s also over budget. Blade was briefly rumoured in early June to have been cancelled.
The scale of the layoffs appears to be larger than anything we might have seen before at Xbox, with some suggesting that at least 1,000 jobs will be lost as a result.
The reportedly wide-ranging layoffs and cuts are all part of new CEO Ash Sharma’s “reset” plan, which is set to affect the entire Xbox division as she attempts to turn it into a healthy business.
