Arkane At Risk Of Closure With Blade Possibly Being Cancelled

The term “bloodbath” keeps being used to describe what’s pending from Xbox after their fiscal year ends on Tuesday. Multiple studios are at risk of being closed, including Blade developer Arkane Studios.

Insider Gaming was the first to report that Arkane was at risk of closure as Xbox was reviewing every studio and project currently in development. Since that time, sources told me that Xbox wasn’t happy with the pace of development on Blade and was looking at “all options” for its future and that of the studio. Now, with news of layoffs expected to come any day now, a new report is corroborating the potential closure of Arkane.

Arkane Is One Of Five At-Risk Studios

On Tuesday, Tom Warren of The Verge put out a report stating that sources have told him that Xbox is looking to cancel Blade as part of its cost-cutting measures. What’s more, the company is looking at shutting down Arkane Studios.

“I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel’s Blade,” Warren writes. “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.”

It’s said that Microsoft is also “exploring options to sell Arkane Studios”. That would join others like Double Fine, Ninja Theory, Compulsion Games, and Undead Labs as studios Microsoft and Xbox are trying to sell or find an agreement on to make independent.

Aside from the at-risk studios, layoffs are expected across Xbox within most of the company. As many as 1,000 people could lose their jobs in what could be the largest single job reduction in Xbox’s 25-year history.

The layoffs are expected to begin in the coming days, with July 6 the likely date. Many employees have already started to post on LinkedIn that they are looking for new work.

What do you think about all of the rumors surrounding the layoffs and studios at Xbox? Leave your thoughts in the comments below, or join the discussion in the official Insider Gaming Discord.

In other news, read about Rockstar Games employees looking to unionize before Grand Theft Auto 6 releases in November. And for even more Insider Gaming delivered directly to your inbox, sign up for our newsletter.