Xbox weighs canceling Blade game and shuttering Arkane

Microsoft is set to announce a wave of layoffs for its Xbox studios and employees next week. Sources familiar with Microsoft’s plans tell The Verge that the layoffs will lead to studio closures or spinoffs, potential mergers of studios, and canceled games. I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel’s Blade . Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company’s Xbox gaming division. Developed by France-based Arkane Studios, best-known for the Dishonored series, Blade was originally supposed to debut later this year according to sources familiar with the game’s development. I’m told the internal ship date for the game slipped to late 2027, and it’s also running over budget. While Microsoft is weighing canceling Blade , it’s also exploring options to sell Arkane Studios. Bloomberg reported earlier this month that Microsoft is trying to spin off Compulsion Games, Double Fine, and Ninja Theory, too. GamesBeat reported this week that Microsoft is actively looking for a buyer for Undead Labs, the developers behind State of Decay . If buyers are found for these studios, then they’ll avoid being closed, but sources stress these talks could take months in some cases. Compulsion Games, the developers behind South of Midnight , is already convinced that closure is imminent and has started telling employees to look for jobs elsewhere. …