
Xbox Reportedly Considering Closing Arkane Studios & Canceling Marvel's Blade
In what could be one of the most devastating blows yet to Xbox's first-party portfolio, multiple reports published Tuesday indicate that Microsoft is seriously considering shutting down Arkane Studios — the acclaimed French developer behind the Dishonored series and Deathloop — as part of an upcoming wave of layoffs expected to hit in July 2026. Alongside the potential studio closure, Marvel's Blade, the ambitious action game Arkane has been quietly developing, may also be cancelled outright. Sources indicate the title is reportedly over budget and has suffered significant delays, making it a likely casualty in Xbox's ongoing cost-cutting efforts.

