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Xbox layoff plans reportedly include closing Arkane, canceling Blade
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Xbox layoff plans reportedly include closing Arkane, canceling Blade

Engadget · Jun 30, 2026, 8:59 PM · Also reported by 2 other sources

Key takeaways

  • The cuts will apparently start next week.
  • Combine this with previous reports from Bloomberg and Games Beat, and it looks like Microsoft is preparing to close or sell off five studios next week: Compulsion Games, Double Fine, Ninja Theory, Undead Labs and Arkane.
  • There hasn't been an update on Marvel's Blade in more than two years, despite our quiet anticipation, and Verge reports that the game is over budget and facing delays.

The cuts will apparently start next week.

Engadget As part of sweeping Xbox layoffs planned to start on July 6, Microsoft is considering shutting down Arkane Studios and canceling the Blade game its been working on since the end of 2023, according to Tom Warren at The Verge. Combine this with previous reports from Bloomberg and Games Beat, and it looks like Microsoft is preparing to close or sell off five studios next week: Compulsion Games, Double Fine, Ninja Theory, Undead Labs and Arkane.

There hasn't been an update on Marvel's Blade in more than two years, despite our quiet anticipation, and Verge reports that the game is over budget and facing delays. Xbox is exploring options to sell Arkane, similar to its reported approach with Compulsion, Double Fine, Ninja Theory and Undead Labs.

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