The Xbox layoffs are now underway, and Arkane Studios has emerged as one of the biggest casualties. According to reports, Microsoft is looking for a new buyer for the studio after Marvel’s Blade reportedly exceeded its budget.
Xbox Layoffs Put Arkane’s Future in Doubt

Microsoft has just announced that they are cutting over 20% of the Xbox workforce by the end of the fiscal year. Over 3,200 employees are being let go in the Xbox layoffs, and four major studios are being sold, including: Ninja Theory, Double Fine, Compulsion Games, and Undead Labs. However, according to a letter from Xbox CEO Asha Sharma, Arkane Studios is also in jeopardy.
“In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.” As far as what this means, Windows Central reports that Microsoft is in talks with the French government to see if there is a way to avoid closing the studio and save Marvel’s Blade with additional funding.
However, Bloomberg’s report on the situation seems to imply that Microsoft is looking at either spinning off, or selling the studio outright. Interestingly, Jason Schreier also explained that because Arkane is based in Lyon France, there are stricter labor laws that have delayed Microsoft’s negotiations on handling the studios future. Apparently, this is a big reason it wasn’t included in the four studios that were sold off in today’s Xbox layoffs.
This article is being updated….
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