Microsoft is reportedly considering significant restructuring within its gaming division, including the potential shuttering of Arkane Studios and the cancellation of its upcoming game, Blade. This news follows earlier reports that suggested layoffs could affect up to 1,000 employees across Xbox and potentially lead to the closure of studios like Compulsion, Ninja Theory, and Double Fine.
According to sources speaking with The Verge, the Blade project, originally slated for release this year but reportedly delayed to next, has also exceeded its budget. The publication's reporting indicates that Microsoft is exploring options to sell off Arkane, a move that could be a lengthy process.
These potential changes are part of broader cost-cutting measures within Xbox. Reports suggest that layoffs are scheduled to begin on July 6 and will impact multiple areas of the division. If the five studios currently under review are indeed closed, an additional 500 roles could be eliminated outside of the direct Xbox workforce.
Beyond Arkane and Blade, other projects are also reportedly affected. IO Interactive's previously unrevealed Project Fantasy has apparently lost its external partner, identified by Bloomberg as Xbox. However, Hideo Kojima's horror game OD is said to be unaffected, according to IGN.