Xbox To Shutter At Least 5 Studios and Cancel Upcoming "Blade" Game
1 July 2026 at 00:26
When it was reported that Xbox Game Studios was planning on restructuring in the face of plummeting revenue, which would predictably lead to mass layoffs and studio closures, it seemed as though a handful of studios were at risk of closure. Now, according to an insider source speaking to The Verge, that number has jumped to at least five game studios, including Arkane Studios, the game studio behind Dishonored and the upcoming Marvel's Blade. Allegedly, even before the rumored studio closures and layoffs, Xbox was unhappy with how slowly Blade was being developed and was weighing its options for the future of the game and its studio.
Microsoft is supposedly using up the time leading up to the planned layoff announcement to seek potential buyers for certain studios, including Arkane Studios, although sources say that Marvel's Blade, currently in development at Arkane, would be cancelled with the studio's closure. As many as 1,000 workers will potentially lose their jobs in the upcoming wave of layoffs at Microsoft's Xbox Gaming. Currently, it seems as though the layoffs will take place on July 6, but Microsoft has yet to confirm anything regarding the layoffs.
Microsoft is supposedly using up the time leading up to the planned layoff announcement to seek potential buyers for certain studios, including Arkane Studios, although sources say that Marvel's Blade, currently in development at Arkane, would be cancelled with the studio's closure. As many as 1,000 workers will potentially lose their jobs in the upcoming wave of layoffs at Microsoft's Xbox Gaming. Currently, it seems as though the layoffs will take place on July 6, but Microsoft has yet to confirm anything regarding the layoffs.
