Microsoft's Xbox division is reportedly exploring the sale of Arkane Studios, the developer behind titles such as Dishonored and the upcoming Marvel's Blade, according to a report from The Verge. This move is part of a larger effort by Xbox to streamline its operations and address financial concerns, which has also led to mass layoffs and potential studio closures across the company.
Sources suggest that Xbox is considering canceling Marvel's Blade entirely. The game, which has reportedly faced budget overruns and slipped its internal release date from this year to next, is seen as a candidate for cancellation. Should Blade be removed from the development slate, Xbox would then look to sell Arkane Studios.
Arkane Studios joins other studios like Double Fine, Ninja Theory, and Compulsion Games, which are also reportedly being considered for divestment or closure as Xbox reassesses its studio portfolio. Reports indicate that leadership within these studios is actively seeking ways to preserve their teams. The potential sale or closure of Arkane would specifically impact its Lyon-based studio. Xbox had previously shuttered Arkane Austin in 2024 following the release of the game Redfall.
Xbox has not officially commented on these plans. However, an internal email sent to employees earlier this month from CEO Asha Sharma and Xbox Game Studios head Matt Booty characterized the division's studio system as "over extended" and "not adequately funded." These comments align with the reported cost-saving measures, which include terminating relationships with third-party contractors and vendors and canceling external projects like Project Fantasy at IOI Interactive, the latter resulting in layoffs.
The ongoing restructuring at Xbox reflects a broader trend of consolidation and cost reduction within the gaming industry. The fate of Arkane Studios and its projects, particularly Marvel's Blade, remains uncertain as the company navigates these significant changes.