Xbox is reportedly exploring drastic measures as part of a wider cost-cutting initiative, including potentially selling Arkane Studios, the developer behind games like Dishonored and Prey. This consideration comes despite recent positive remarks about the studio's upcoming title, Marvel's Blade.
According to a report from The Verge, Arkane is among at least five studios being considered for closure or divestment by Microsoft. The publisher is said to be concerned about the development of Marvel's Blade, which has reportedly run over budget and seen its unannounced release date pushed back to late 2027. This uncertainty has apparently led Xbox leadership to reconsider Arkane's future within the company.
These developments cast a shadow over recent statements made by Todd Howard, Arkane's art director Jean-Luc Monnet, who seemed to downplay concerns, with Howard himself stating that the studio was "doing a really, really good job" on Blade. Monnet had also indicated that the game was not being cancelled and that the team needed time to develop it.
Arkane Studios, with a 26-year history, is a prominent developer in the niche immersive sim genre, a space with few major players. The studio's critically acclaimed titles, such as Dishonored 2 and Prey, have garnered significant praise, though they did not always meet Bethesda's sales expectations. The studio's previous title, Redfall, faced a troubled launch.
The potential sale of Arkane could offer a lifeline, allowing the studio to continue its work under new ownership. The report suggests that this move might be beneficial, as Arkane's risk-taking approach to game development may not have aligned with the strategies of its current parent companies, Bethesda and Xbox.
These reports emerge amidst a broader restructuring within Microsoft's gaming division. CEO Phil Spencer is reportedly overseeing a significant overhaul aimed at reducing costs, with rumors of at least 1,000 job cuts across the company. The potential closure or sale of studios like Arkane is part of this larger effort to streamline operations and manage financial performance.