Ahead of anticipated mass layoffs at Xbox that could potentially result in multiple studio closures or spinoffs, a new report now lists Dishonored maker Arkane Studios as one of the studios currently in danger, even as it works on Marvel’s Blade.
This comes from a report by The Verge, which says that Xbox wants to cancel Blade entirely after its internal release date slipped from this year to next as the game ran over budget. With Blade off the docket, Xbox hopes to sell Arkane Studios. The company is apparently looking at a variety of options to remove studios such as Double Fine, Ninja Theory, Compulsion Games, and possibly others from its roster, and reports including our own have indicated studio leadership in each group is actively looking for ways to keep the teams together.
If it occurs, the closure or sell-off of Arkane would impact Arkane Lyon. In 2024, Xbox shuttered Arkane Austin following the release of Redfall.
Thus far, Xbox has refrained from commenting on any of its plans beyond publication of an email sent to employees earlier this month illustrating the division’s financial situation, in which CEO Asha Sharma and Xbox Game Studios head Matt Booty characterized its studio system as “over extended” and “not adequately funded.”
Meanwhile, as part of a broader cost-saving effort, Xbox is already cutting ties with third-party contractors and vendors, a move that’s also resulting in wider job losses. This includes canceling external projects, such as Project Fantasy at IOI Interactive, which is now undergoing layoffs as a result.