Blade and Dishonored developer, Arkane, is reportedly another Xbox studio facing closure, as part of expected huge cuts at Microsoft.
Earlier this month, media reports indicated that the Xbox division was planning significant job losses across its business, as part of a major ‘reset’ being planned by CEO Asha Sharma.
The first developers at risk of being shut down were named by Bloomberg as Compulsion Games, Double Fine, and Ninja Theory, with Undead Labs later reported to be a target for closure.
Now, The Verge reports that France-based Arkane Studios, best-known for the Dishonored series, is also facing closure if Microsoft is not able to find a buyer for the studio.
“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,” the publication said.
“Blade was originally supposed to debut later this year, according to sources familiar with the game’s development. I’m told the internal ship date for the game slipped to late 2027, and it’s also running over budget.”
Microsoft is expected to announce the extent of its Xbox layoffs next week, which The Verge believes will lead to studio closures or spinoffs, potential studio mergers, and canceled games.
Arkane’s Blade was announced during The Game Awards in 2023.
The studio’s last game was the critically acclaimed 2021 shooter Deathloop. Before that, the developer helped on the Wolfenstein games with Machine Games, and developed Dishonored 2 and Dishonored: Death of the Outsider.
On Monday, unionized Xbox workers shared their views on the planned widespread layoffs, stating that they “will not be treated as disposable”.
During a press conference, Diablo 4 senior environment artist Mahreen Fatima stated that the company had spent billions on AI tech, arguing that Microsoft is “choosing not to protect us” and demanding proof it’s actually short enough on money to justify mass layoffs at Xbox.
