Xbox is analyzing the closure of Arkane Studios and the possible cancellation of Marvel's Blade, according to a report. This measure would be part of a restructuring that would also include more than 1,000 layoffs within Microsoft's video game division.
According to the published information, the process would begin during the week of July 6 and would affect several studios. In addition to closures, Microsoft would also be considering selling or merging some of its developers.
What will happen with Arkane Studios and Marvel's Blade
According to a report from The Verge, Xbox is studying the closure of Arkane Studios, the studio responsible for titles like Dishonored and Deathloop.
The restructuring would also jeopardize the development of Marvel's Blade, the video game featuring the Marvel character that was being developed by Arkane.
According to the outlet, the project was internally scheduled for 2026, although it was later postponed to late 2027 and had already exceeded the initial budget. On June 23, Xbox stated that the game was not canceled.
Which other studios could close
The report states that Microsoft is considering closing at least five studios. In addition to Arkane Studios, the list would include:
Ninja Theory, the studio that presented Senua during the Xbox Games Showcase.
Undead Labs, developer of State of Decay 3.
