Marvel’s Blade Could Be Cancelled as Xbox Considers Shutting Down Arkane Studios – Rumor

Reportedly running over budget, Arkane Lyon's title was allegedly slated to launch in 2026 before being delayed to late 2027.

Posted By | On 01st, Jul. 2026

Marvel's Blade

Amid impending layoffs for Xbox, The Verge has reaffirmed recent reports that they would begin on July 6th. Furthermore, it seems that Arkane Studios, based in Lyon, could be facing closure.

Despite positive statements from Bethesda creative director Todd Howard, Microsoft is reportedly considering shelving Marvel’s Blade, announced in December 2023. Besides missing an alleged 2026 launch for a late 2027 window, it’s apparently over budget – and with Xbox looking to cut costs, that probably pushed it to the front of the queue.

As with other reported studios on the chopping block, including Double Fine Productions, Compulsion Games, Ninja Theory and, more recently, Undead Labs, Arkane could survive if sold off. Options are seemingly being explored for the same, though whether a potential buyer is even available remains to be seen.

Even if each of the above studios emerges unscathed, Xbox is reportedly looking at layoffs at id Software and Blizzard Entertainment. It’s also allegedly stopped funding projects like 1666: Amsterdam and confirmed that it won’t be partnering with the likes of IO Interactive to publish Project Fantasy, leading to layoffs at the studio.

Amid all this uncertainty, however, it’s still forging ahead with its gaming investments, even if the returns leave something to be desired, as seen with Xbox Series X/S sales cratering last month. And that was before recent price increases.


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