We are standing on a precipe of chaos at the moment. It’s clear that Xbox is away to layoff potentially thousands of people and close/sell/spin-off several studios. Now, a new report says Arkane is also in danger, along with Marvel’s Blade.

Arkane’s Blade game was announced back in 2023 and has been almost entirely radio silent since, although just recently Bethesda head-honcho Todd Howard said he had seen the game and the team was doing a “really, really great job.”

That might not be enough, though. Tom Warren at The Verge has published a new article, stating “I understand Microsoft is currently weighing closing at least five studios” and that Arkane Lyon is one of them.

This would also mean the cancellation of Blade in a bid to help cut costs. Warren says his sources claim the game was meant to debut properly this year, but the internal ship date slipped to 2027 and “it’s also running over budget.”

I guess Wesley Snipes was being deadly serious when he said “there’s only one Blade, and there’s only ever gonna be one Blade” in Deadpool & Wolverine.

Warren notes that like the other studios, Arkane does have a chance at survival because Microsoft is looking at options such as selling the team or even letting it go independent. Those other studios that in the most danger are being reported as Double Fine, Ninja Theory, Compulsion Games and potentially Undead Labs, although the reporting on Undead Labs is being debated.

Everything points toward the next few weeks being horrendous for everyone at Xbox. I hope everyone who gets effected the best of luck going foward.