Microsoft plans to close Arkane Studios and cancel the game Blade as part of a broader restructuring of its Xbox division. This move removes two major development teams from the platform, directly affecting the future of the Dishonored and Blade franchises. Players and industry observers should note that these changes reflect significant cost-cutting measures led by Xbox leadership.
Xbox division restructuring removes Dishonored developer and over-budget project
Arkane Studios, known for creating Dishonored and Deathloop, is reportedly facing closure or sale by Microsoft. The cancellation of Blade, a project developed by the studio, is tied to these organizational shifts. Microsoft has not officially confirmed the closure or the cancellation, but reports indicate the decisions are part of a wave of job losses.
The game Blade was originally scheduled to debut later this year before its internal ship date slipped to late 2027. Reports state the project was running over budget, which contributed to the decision to cancel it. 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, according to The Verge.
Other Xbox studios, including Compulsion Games, Double Fine, and Ninja Theory, were previously reported as targets for similar closures. Unionized Xbox workers have expressed concerns about the layoffs, with one artist citing high AI spending as contradictory to budget cut claims. These developments mark a significant shift in the composition of Microsoft's first-party development roster.
Source: VideoGameChronicles
