However, despite allegedly being delayed to next year, Giant Bomb’s Jeff Grubb reports that it was “pretty far along.” On the latest Giant Bombcast, he notes that Arkane “were going to begin debuting it in some way later this year, and maybe even release it next year.”

He notes that the project seemingly needed more time but Xbox “just didn’t want to pay for that.” Keep in mind that Grubb didn’t confirm the cancellation or even that Arkane is officially being canned. But it seems the 2027 release window is legitimate, according to Bloomberg’s Jason Schreier on ResetEra, though he couldn’t confirm the fate of either with “100 percent certainty” at this time.

Aside from Arkane, reports currently claim that Compulsion Games, Ninja Theory, Double Fine Productions and Undead Labs are in danger of shutting down. There’s always the possibility of a buy-out or another company acquiring the studios, but nothing is confirmed as of now. Obsidian Entertainment was recently alleged to be part of the lineup, but it’s seemingly safe, as Schreier debunked those reports.

With Microsoft entering a new financial year, we could learn more next week and see just how extensive the layoffs could be. Stay tuned for updates in the meantime.

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.

Aside from assuring that The Elder Scrolls 6 is still coming along, Bethesda’s director and executive producer had good things to say about the upcoming vampire-slaying adventure featuring the titular character from Marvel’s comics and films. However, he was pretty cagey about when we would get a look at the game, or a potential release window.

“I’m not at liberty to say when, but I saw some stuff just yesterday, and the folks at Arkane are doing a really, really great job.”

That definitely gives us reason to be optimistic about this one, despite the relative lack of new information from Arkane since its announcement in December 2023. However, it’s worth noting that Howard’s comments are from May and only recently published by Entertainment Weekly. Whether things have changed at Xbox since, especially with layoffs reportedly looming, remains to be seen. Lest we forget, the gaming division did announce Ninja Theory’s Senua one week before reports emerged of its imminent closure (though the decision had apparently been made prior).

For now, we’re going to consider Howard’s words as a sign that things are going well, and that a little bit of patience is a small price to pay for a title that could potentially complement Rebel Wolves’ The Blood of Dawnwalker, which launches in September.

While neither Zenimax nor Microsoft have made any official announcement regarding the matter, Broussard cites unnamed sources, saying that the job cuts and studio closures might go much deeper than many had previously believed.

“Getting word that layoffs at Zenimax has begun. Heard rumblings recently that the cuts may be much deeper than you expect. Buckle up!”

This means that studios like id Software, Bethesda Game Studios, and id Software are likely going to be hit by a round of layoffs as well. Whether or not there are plans for studio closures across Zenimax, however, remains unknown.

Responding to another post indicating that anyone who isn’t actively working on Elder Scrolls and Fallout projects was being cut from the company, Broussar said, “Oh, is that public now? That’s exactly what I heard a few days ago. Guess we’re about to see.”

If these layoffs have already started, employees are likely just being notified about whether or not they are being cut for the time being. Microsoft will likely continue to wait until after its current fiscal year ends on June 30th before the planned layoffs and studio closures start kicking in.

Among the studios seemingly being targeted for closure is Hellblade franchise developer Ninja Theory. A recent report indicated that Microsoft had planned to shutter the studio even before its newest project – Senua – was showcased during Xbox’s recent event. The report noted that the trailer was shown in an attempt to attract investors that might help Ninja Theory spin off into an independent studio.

Double Fine – the studio behind Kiln and Keeper – and Compulsion Games – known for South of Midnight – are also believed to be targeted for closure. However, reports have indicated that both studios, along with Ninja Theory, have begun negotiations with Microsoft to go independent rather than just being shut down.

According to recent reports, these decisions are being made according to Xbox CEO Asha Sharma’s plans to mitigate the revenue losses that have been faced by the entire division. In a recent post on Xbox Wire, Sharma, along with CCO Matt Booty, discussed the falling revenue coming in despite $20 billion being spent on investments in content, platform, and hardware subsidies. “Going forward, this cannot continue,” they wrote.

Xbox is also facing major troubles on the hardware side of things, since the recent shortages in memory and storage modules have led to the company’s expenses in making Xbox Series X/S consoles to skyrocket. While it has tried to mitigate this by raising the console’s price, the company has also notably been unable to keep store shelves stocked despite there already being a demand for the consoles.

Leading up to these layoffs, former PlayStation executive Shawn Layden has said that Xbox shows a “basic misunderstanding” of how the gaming industry works.

When a social media user tagged Arkane, asking if the studio was “still alive” (via machine translation), Monnet responded with a GIF from Breaking Bad, featuring protagonist Walter White simply saying: “Let us cook.”

Marvel’s Blade was announced all the way back in December 2023. Since then, however, the studio has been quiet about the project, aside from confirming that it had “just begun development” at the time. Aside from Monnet’s recent post, the only other proof of its existence was another social media post by co-creative and art director Sebastien Mitton, where he showed off a few pieces of concept art from the project.

Interestingly, the LinkedIn profile of Marvel’s Blade’s campaign director, Dana Nightingale, has indicated that it’s been in the works since January 2022. However, the team likely spent over a year in the pre-production phase.

In the meantime, rumors have indicated that Marvel’s Blade is internally expected to launch in 2027. Giant Bomb’s Jeff Grub said at the time that this timeline is just an estimate, and marks the earliest point at which Arkane Lyon believes the project will be ready.

The studio’s titles are known for their unique gameplay mechanics that often rely heavily on the tropes and conventions of the immersive sim genre. While the studio has worked on several cult-classic projects throughout its time, such as 2002’s Arx Fatalis, it received broader recognition for the 2012 release of Dishonored. Since its formation, Arkane Lyon has been working on many other games and expansions in the series, including 2017’s Dishonored: Death of the Outsider and 2019’s Wolfenstein: Youngblood, the latter of which was co-developed by the studio alongside MachineGames.

The last major project from the studio was 2021’s Deathloop, which was released on PC, PS5, and Xbox Series X/S. The title put players in the shoes of Colt, who happens to be stuck in a strange time loop on the island of Blackreef. It makes use of some light roguelite mechanics and encourages players to experiment quite heavily in how they approach its many levels, with the ultimate goal of taking down 8 “Visionaries”.

Deathloop also included an interesting multiplayer “invasion” system, where players could take on the role of rival assassin Julianna to hunt down other players who were making their way through the campaign.

One of the core ways Pearl Abyss achieved this, he noted, was by getting players used to the “gameyness” of Crimson Desert quite early on. This includes aspects such as its control scheme, gameplay systems, and even other games that may have inspired it. The “magic” of the open world only starts kicking in after players have already spent a few hours with the game.

“Interesting how Crimson Desert functions opposite to most games of this type: generally the beginning is magical, and after a while you start to see the strings ‘ah this is close to this game, oh this is going to be repeated etc,” he wrote on social media. “You start with the gameyness front-loaded: the inspirations, the controls, the systems: it’s almost all you see. But after a while, all this takes the back seat: magic kicks in and doesn’t disappear because you have already accepted the rules/constitutive elements.”

“It’s almost like the specific type of immersion of a board game where at first all you see is the board/rules, but then you enter the magic circle properly, and the real fun begins. And where it excels is at this point, the game hasn’t thrown everything it has in store at you.”

Bakaba went on to praise the fact that Crimson Desert likes to introduce new aspects of its open world to players at a steady pace. He also noted that gameplay systems introduced in this way also happen to be quite “meaty” and fit into the larger world quite well. This helps players have more fun in their journeys, since they’re also constantly rewarded for the time they spend with the game.

“It keeps on introducing new things, giving more significance to systems and making them interact with each other,” he wrote. “It doesn’t hurt that most of them are ‘meaty’ and realized diegetically, and that there is also some tonal liberties with some (smartly engineered) stupid fun.”

“This coalesces in a singular player journey from game to magic to discovery that might be why so many find investing time in it rewarding and “personal”. In a time of fast consumption, a game that is sticky because it has friction, and not because it’s smiley feels amazing.”

Crimson Desert was released on PC, PS5, and Xbox Series X/S in mid-March and has since become quite a hit with players. Pearl Abyss recently confirmed that it had sold 4 million copies of the game. The fact that the studio has offered consistent post-launch support by releasing updates that address some of its biggest pain points, as noted by players, has also certainly helped. Check out our review for more details. And while you’re at it, take a look at our own thoughts about why calling the game’s early parts “boring” misses the entire point.

In an interview with PCGamer, Eveillé spoke about how expensive the game was to make (seemingly costing more than The Elder Scrolls 5: Skyrim), and the studio’s reputation of refined video game releases.

“It was a bit strange and weird,” said Eveillé. “I think when Bethesda was looking at the numbers, they thought, ‘OK, Skyrim sold so much. And it cost less than Dishonored 2 to make.’ So they were asking questions. From an executive spending standpoint, it makes sense to ask those questions, ‘Why should we keep going with you?’ But we knew we had a kind of seal-of-quality protection, making what would maybe be considered the most refined games of the whole Bethesda catalogue.”

Eveillé revealed that Arkane’s reputation for developing refined titles “kind of saved the studio.” He also spoke about the departure of founder Raphael Colantionio and how studio director Dinga Bakaba took control. All of these actions contributed to the “future success of the studio.”

While Arkane Lyon hasn’t released any single-player titles since 2021’s Deathloop, its next major is Marvel’s Blade. While few details have been revealed, we know that it will feature a third-person camera – a departure from a studio known for making first-person games.

Since its original announcement, art director Sebastien Mitton has posted a few pieces of concept art for the upcoming game, confirming it will take place in Paris.

Arkane hasn’t yet announced the release date for Marvel’s Blade, but rumours from December 2023 indicate that it’s internally aiming for a 2027 release. If more development time is required, the release window could get pushed back further.

Back in May 2024, when Arkane Austin was shuttered due to the poor sales of Redfall, Arkane Lyon director Dinga Bikaba took to social media to discuss the closure. He also asked executives to not “throw us into gold fever gambits,” among other things while confirming that Arkane Lyon was safe.

For more details on Arkane Lyon’s previous works, check out our reviews of Deathloop and Dishonored 2.

“This is absolutely terrible. Permission to be human: to any executive reading this, a friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

“Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environments Darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we saw it before. For now, great teams are sunsetting before our eyes again, and it’s a f*****g gut stab.”

While he assured Arkane Lyon was safe, Bakaba asked, “Please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard. It’s their story to tell, their feelings to express.” He also called out any talk of an “immersive sim curse,” stating, “Please, let’s talk about the *real* challenges instead of rehashing irrational anxieties of the past.”

Arkane Austin’s closure followed the controversial release of Redfall, a co-op shooter that strayed far from the studio’s history of immersive sims. It received mixed reviews, and sales were “minimal,” though Microsoft claimed there were no plans to shut the studio down. Though its last update was in November 2023, the development team were reportedly working on new updates, with its two new DLC characters planned for this Halloween before the closure.

Refunds will be available for those who purchased the Hero Pass or upgraded to the Bite Back Edition, so stay tuned for further updates. As for Arkane Lyon, its next project is Marvel’s Blade, which Bakaba is directing. It’s reportedly targeting a launch in 2027.

This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Don't throw us into gold fever gambits, don't use us as strawmen for miscalculations/blind spots, don't make our work environments darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we seen it before.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

For now, great teams are sunsetting before our eyes again, and it's a fucking gut stab. Lyon is safe, but please be tactful and discerning about all this, and respect affected folks' voice and leave it room to be heard, it's their story to tell, their feelings to express.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Inside baseball, but if I read "immersive sim curse" from the community, especially from a fellow dev, I swear to God… Please, let's talk about the *real* challenges instead of rehashing irrational anxieties of the past.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Even more inside baseball, but with a very, very wide range, as a wise and sorely missed man said:

"Please Stop."

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

According to Giant Bomb’s Jeff Grubb on the XboxEra Podcast, “Right now, internally, they are expecting that to be sold on store shelves and digitally in 2027. That is the year that they are aiming for that game.” That would place it around six years after the launch of Deathloop, which arrived in September 2021. However, as Grubb notes, that’s “2027 at the earliest.” Plans could change, especially since development has only just begun on the title.

An interesting point from XboxEra co-founder Nick Baker is how it could be a cross-gen game, potentially arriving on Xbox Series X and Microsoft’s new console. The latter is rumored to launch in 2026 and may not pursue the mid-gen refresh leaked earlier this year.

With Bethesda not commenting on Xbox exclusivity, it’s certainly possible. Stay tuned for updates, and in the meantime, check out some concept art for Marvel’s Blade.

Taking to Twitter, Sebastien Mitton – co-creative and art director at Arkane Lyon – shared three new pieces of concept art for Marvel’s Blade, showcasing the titular vampire-slash-vampire hunter in several locations all throughout Paris, which is where the game is set. One of the pieces shows him looking on at the city from the rooftop of a building, the other shows him hiding in the shadows in an alleyway, and the third shows vampires inside a Metro train, while Blade fights bats on the station outside. Check them out below.

There’s no word yet when Marvel’s Blade will launch. Bethesda has said the game “just entered development”, though it might have been in the works at least in some capacity since January 2022. Interestingly, Bethesda has, thus far, also declined to comment on whether it will be an Xbox console exclusive.

Your excitement following Marvel's Blade reveal means the world to us. Here's some exclusive eye candy from our Art heroes at Lyon! ❤️

Want to team-up? Check out Arkane Lyon's open positions as we're looking for talents in various disciplines: https://t.co/JZNi6qGbJ4 pic.twitter.com/INV3h7u2VG

— Sebastien Mitton (@mitmitman) December 14, 2023