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We can't go a day without some kind of report about Xbox layoffs at the moment, with The Verge reporting this afternoon that Marvel's Blade developer Arkane Studios is in danger of being closed by Microsoft.
This had already been rumoured prior to today, but The Verge goes one step further by stating that, according to its sources, Microsoft wants to cancel the game. Further details suggest it was originally planned for 2026 before it was internally delayed to late 2027, and it has now gone over budget.
Here's the key quote from the report:
"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."
As you can see, five studios are mentioned to be at risk here — those are believed to be Arkane Studios, Double Fine, Compulsion Games, Ninja Theory and Undead Labs.
The report says that Microsoft is exploring options to sell Arkane Studios, which obviously would save the company along with Marvel's Blade. It remains to be seen whether this will be successful or not, and it's warned that these talks could take months to conclude if they drag on. All of the other studios could potentially find a buyer too, although Compulsion Games is apparently "convinced that closure is imminent".
There's no way of knowing when we'll get concrete information on all of this, but the layoffs are reportedly due to start on July 6th. We'll obviously be keeping an eye on the situation, and we'll keep you in the loop as much as we can.