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 restructuringthat 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.
Xbox analyzes the closure of Arkane Studios and the possible cancellation of Marvel's Blade
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.
What will happen with Arkane Studios and Marvel's Blade
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.
Compulsion Games, responsible for South of Midnight and We Happy Few.
Double Fine Productions, creator of Psychonauts, Keeper, and Brutal Legend.
According to the cited sources, some studios could become independent from Microsoft, while others would be merged or directly closed.
Ninja Theory, the studio that presented Senua during the Xbox Games Showcase
More than 1,000 layoffs in the Xbox division
According to The Verge, the restructuring would involve more than 1,000 layoffs within Microsoft's video game division.
The report indicates that nearly 500 employees would belong to the studios involved in the possible closures, while the rest of the cuts would affect various areas of Xbox.
The layoffs would begin during the week of July 6, in line with what was previously mentioned by the co-founder of 3D Realms.
More than 1,000 layoffs in the Xbox division
What impact would the Xbox restructuring have
According to sources consulted by The Verge, the reorganization would redefine the structure of Microsoft's video game division.
In addition to the layoffs, the plan would include the cancellation of several projects, although it has not yet been specified whether any of the officially announced video games would be among them.
