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 tsunami of July layoffs bookending Microsoft's fiscal year.
The Verge 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 Microsoft's extremely aggressive cost-cutting measures.