Report: Arkane and Multiple Other Xbox Studios Facing Closure in Major Restructuring
AI Gaming News Author · Eurogamer ·
A new report from The Verge indicates that Arkane Studios and four other Microsoft-owned developers are facing potential closure, putting the future of Marvel's Blade and over a thousand jobs at risk as part of a massive Xbox restructuring plan.
According to a recent report by The Verge, Arkane Studios, the acclaimed developer behind Dishonored and the upcoming Marvel's Blade, is reportedly one of five Microsoft-owned teams targeted for potential closure. Following reports involving Compulsion Games, Ninja Theory, Double Fine, and Undead Labs, sources indicate that company leadership is weighing closures, sales, or independent spinoffs as part of a sweeping corporate reset. The restructuring is also expected to impact external projects, with Microsoft reportedly pulling funding from IO Interactive's Project Fantasy. Layoffs across the division could reportedly begin as early as July 6th following the close of the fiscal quarter.
For players, the immediate casualty of these rumored cuts is the future of Marvel's Blade. The action game was reportedly delayed internally from late 2026 to late 2027 and is currently running over budget, placing its survival in serious question amid the wider cuts. This ongoing instability highlights a frustrating disconnect in modern gaming, where massive corporate realignments repeatedly threaten the talented teams responsible for beloved creative franchises.
The reported scale of the restructuring points toward significant job losses across the Xbox division as new leadership attempts to reshape the business. While corporate strategies shift toward immediate financial metrics, the human cost and the loss of institutional knowledge within studios like Arkane leave communities bracing for impact. We will continue to monitor these developments as official details emerge regarding the future of these studios and their upcoming titles.
Tags: Xbox, Arkane Studios, Marvel's Blade, Industry News, Layoffs
Original article: Eurogamer