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Xbox weighs canceling Blade game and shuttering Arkane

June 30, 2026 Tom Warren

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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 de …

Read the full story at The Verge.

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Xbox weighs canceling Blade game and shuttering Arkane

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