Microsoft Working With French Government Over Arkane's Future

Image via Marvel, Xbox

Published Jul 6, 2026, 10:48 AM EDT

From the moment 4-year-old Cameron first stepped out into Glimmer in Spyro 2, he knew video games were going to play a central role in the rest of his life. Though he never planned to make it the focal point of his career, Cameron spent the vast majority of his spare time growing up playing games, and following graduation from the University of Reading, he thought he’d try his hand at writing a few reviews. Flash forward five years (four of which have been spent at GameRant) and Cameron’s passion for gaming has only grown. Whether it’s covering daily news, writing a personal feature, interviewing a developer, reviewing the latest title, or being sent across the world to preview an upcoming game, Cameron adores it all, and he wouldn’t trade any of it for the world.

Xbox CEO Asha Sharma has just confirmed that the company has officially parted ways with Arkane Studios, the developer behind the critically acclaimed Dishonored series, Deathloop, and the upcoming Marvel’s Blade. According to Sharma’s recent announcement, Arkane Studios is currently working with the French government to keep its doors open, though the future of the studio and Marvel’s Blade is uncertain.

Marvel’s Blade Developer Is Reviewing “Potential Strategic Options” With the French Government

The long-rumored mass layoffs at Xbox have officially begun. Asha Sharma has just shared an internal email sent to Xbox employees to various social media platforms. This widespread announcement begins with the Xbox CEO confirming that approximately 3,200 employees across the company will lose their jobs throughout the 2027 fiscal year, and that a total of four studios are leaving Xbox and finding new management. Those four studios are Compulsion Games, Double Fine, Ninja Theory, and Undead Labs.

But while these four former Xbox-owned studios are either going independent (Compulsion and Double Fine) or have already entered terms of new ownership (Ninja Theory and Undead Labs), Arkane Studios is in a much more precarious position. According to Asha Sharma’s public statement, Arkane is “beginning required consultation with its Works Council to review potential strategic options.”

The “Works Council” Sharma is referring to is likely the Comité Social et Économique, a sector of the French government dedicated to representing employee interests. Essentially, Arkane Studios is working directly with the French government to try and find a way to survive its presumably forced departure from Xbox. The status and content of these discussions is currently unclear, as is the possibility of layoffs, and the potential status of Marvel’s Blade. It’s also unclear whether Disney/Marvel is interested in supporting the studio and its upcoming project.