Xbox fans have finally been given a Marvel game of their own to look forward to, but its future is as uncertain as ever as Xbox looks to make drastic cuts.
Xbox is considering canceling its upcoming blade game
Just a few weeks ago, Xbox fans were getting pumped up about the Xbox Games Showcase. The Gears of War: E-Day direct was the source of a lot of hype and buzz, and many Xbox faithful and gamers in general were hoping to finally get a glimpse of Arkane’s Blade game after its surprising and exciting reveal in 2023. The game not showing face at the event was surely a bit disappointing for many, but now things have taken a turn for the worst, as Marvel’s Blade and Arkane itself are in jeopardy of being shut down by a “resetting” Xbox.
The past few weeks since the showcase have been bedlam in the Xbox community, as reports have poured in that Xbox is preparing yet another wave of layoffs that could very well spell the end of a number of first-party studios. Beloved teams like Double Fine, Hellblade studio Ninja Theory, State of Decay 3 devs Undead Labs, and South of Midnight studio Compulsion Games have been the most frequently named studios that are actively either attempting to find other game companies to buy them out or are negotiating a Toys for Bob-style split-up from Xbox. Undead Labs and Ninja Theory in particular are causing outrage among fans because the former has State of Decay 3 finally on the way next year after six years of waiting, and Ninja Theory just revealed its new Senua game at Xbox’s showcase 25 days ago.
Arkane Studios is also on the chopping block
Now, new reports are coming out that add Marvel’s Blade to the pile of announced first-party Xbox games that could be canceled as a result of this big Xbox “reset.” According to The Verge’s Tom Warren, Microsoft is currently considering ending Arkane’s production of Marvel’s Blade, Xbox’s one and only big first-party Marvel game. It was first announced during the 2023 Game Awards two years after Arkane’s 2021 masterpiece Deathloop came out. Warren adds that since entering production, Marvel’s Blade has exceeded its budget, and while it was initially aiming for a 2026 release, it’s been internally delayed to late 2027.
Unfortunately, it’s not just Marvel’s Blade that’s in danger but Arkane itself, too. Just like with Double Fine, Compulsion, Ninja Theory, and Undead, Xbox is looking to sell off Arkane or close it down if no buyer is found. Arkane became part of Xbox when Microsoft acquired Bethesda in 2021 and is most famously known for its work on the beloved Dishonored games, as well as Deathloop, which earned mountains of praise and accolades when it came out five years ago, initially as a PlayStation 5 console exclusive. It wouldn’t be the first Arkane studio Xbox has shut down, as its Arkane Austin branch, which was most widely known for its underrated 2017 Prey game, was closed by Microsoft in 2024 alongside other Bethesda teams like Roundhouse Studios, AplhaDog Games, and Tango Gameworks. Tango, however, was able to survive with the help of Korean publisher Krafton.
The coming days and weeks are expected to be extremely turbulent for Xbox and its studios as these layoffs and closures loom large. The best-case scenario would be that Arkane and these other teams are able to either spin off independently or find other companies willing to shell out for them, but even then, the projects they currently have in development, such as Marvel’s Blade, seem unlikely to survive such moves.
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