Xbox to close Arkane and halt Marvel's Blade development - Media

The developers of Dishonored may lose their jobs.

Arkane Studios, known for the Dishonored series, may become another victim of Microsoft's massive gaming division restructuring. According to The Verge, the company is considering closing the studio if a buyer cannot be found for it.

Earlier in June, media reported that the Xbox division was preparing for major staff cuts as part of a large-scale "reboot" initiated by new Xbox CEO Asha Sharma. According to Bloomberg, Compulsion Games, Double Fine, and Ninja Theory were already at risk, and Undead Labs was later added to the list of potentially closing studios.

Now, as The Verge claims, a similar fate may await Arkane. The publication also reports that Microsoft intends to cancel the development of Marvel's Blade as part of a new wave of cost-cutting measures.

According to sources familiar with the development, Blade's release was initially planned for late 2026, but then the internal release date was moved to late 2027. In addition, the project significantly exceeded its planned budget, which may also have influenced the company's decision.

Microsoft is expected to officially announce the extent of the Xbox cuts next week. According to The Verge, these may lead not only to layoffs but also to the closure or sale of individual studios, the merger of internal teams, and the cancellation of a number of unreleased games.