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.

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.

However, Arkane Lyon falls under Bethesda Softworks, owned by Microsoft. The question then arises: Will it be exclusive to Xbox Series X/S? VG247 asked Bethesda to clarify (since the reveal trailer doesn’t list any platforms), but it refused to comment.

It’s not the first time an upcoming title from a Microsoft-owned studio had its exclusivity questioned. Obsidian Entertainment’s The Outer Worlds 2 was announced for Xbox Series X/S and PC at E3 2021, but Xbox Game Studios head Matt Booty said it’s still undecided during the recent case with the FTC. The main difference is that it’s a sequel to a multi-platform franchise, while Marvel’s Blade is a new IP.

As always, time will tell, so stay tuned. Regarding console exclusives, Microsoft has Senua’s Saga: Hellblade 2 launching in 2024 after Towerborne and Ara: History Untold. Check out its latest gameplay trailer.