[STEAM] Xbox could cancel Marvel's Blade and close Arkane in July bloodbath, report says, or the studio may be sold off

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Xbox is reportedly considering closing or selling Arkane Studios and canceling the developer's next game, Marvel's Blade, as part of a widely reported, impending

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bookending

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's fiscal year.

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reports that Arkane is one of at least five studios on the chopping block. With Marvel's Blade reportedly over budget and unable to meet a planned 2026 release date, it and Arkane may be caught up in

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's extremely aggressive cost-cutting measures.

Arkane's Jean-Luc Monnet

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, as fears circulated around Summer Game Fest. "Let us cook," he said.

However, just as reports indicated that Xbox studios like Double Fine or Ninja Theory

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, The Verge reports

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is also "exploring options" to sell Arkane rather than shutter it outright.

Xbox has a history of acquiring and swiftly closing studios, often before they're able to release even two games, which has spoiled attempted rebrands and soured some opinions of the company. This expected July bloodbath comes years after the company's, and the games industry's, biggest-ever acquisition in Activision Blizzard, which has not reversed the struggling Xbox platform's fortunes.

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(Image credit: Bethesda Softworks) In 2024,

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after the predictably disastrous release of live service game Redfall, which Xbox leadership reportedly dumped on the studio despite its history of single-player hits. Arkane founder Raphael Colantonio

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"stupid."

Compulsion Games, also part of Xbox and maker of award-winning action game South of Midnight,

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and advised employees to look for work elsewhere.

Amid what new Xbox CEO Asha Sharma has

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, reports suggest the company's latest attempt at reducing costs may, at the very least, see some studios survive independently or under new owners. Even then, layoffs at the affected studios are likely as they adjust to their new environment and reconfirm funds.

Last week,

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, making the disc drive-equipped Xbox Series X an eye-watering $800 at a baseline. Macro economic pressures on the games industry have only compounded rising costs in the space and at

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, which has been

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its new-gen console

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.

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.

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