Microsoft is reportedly evaluating the cancellation of the upcoming Marvel's Blade video game and the potential closure of its developer, Arkane Studios Lyon. According to a report from The Verge, the tech giant is considering shutting down at least five studios as part of a larger business "reset."
The Marvel's Blade game, initially slated for a 2026 release, was reportedly delayed to late 2027 and is currently over budget. Despite earlier reports in June denying cancellation, the game has not featured any gameplay footage since its 2023 announcement.
Microsoft is also said to be exploring options to sell Arkane Studios. The Verge's report indicates that while finding buyers could prevent closures, these discussions might extend for several months. This potential move follows reports that Microsoft is also attempting to divest other studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. If buyers are not found for these studios, their closure is a possibility.
Arkane Studios Lyon, located in France, is handling the development of Marvel's Blade. Its sister studio in Austin, Texas, responsible for Redfall, was closed in May 2024. Microsoft acquired both Arkane teams as part of its acquisition of ZeniMax Media.
These potential studio closures and game cancellations are part of Xbox CEO Asha Sharma's strategy to "reset" the Xbox business, with the goal of establishing it as the leading gaming and entertainment company. The report also indicated that job cuts across most of Xbox are expected to begin on July 6, with some unconfirmed reports suggesting up to 1,000 employees could be affected. If five studios are indeed shuttered, this could represent a loss of at least 500 jobs.