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Marvel's Blade could get cancelled as Xbox is considering to shut down Arkane Studios - Report

Mahaksh has been a part of Khel Now since 2024. He covers gaming-related news and updates.
Published at :July 1, 2026 at 3:21 PM
Modified at :July 1, 2026 at 3:21 PM
Marvel's Blade

(Courtesy : Arkane Studios, XBOX)

Five studios at risk!

Microsoft’s latest ongoing restructuring efforts may hurt many big studios at Xbox. According to reports, Xbox is looking to shut down five studios, including Arkane Studios, which is currently working on Marvel’s Blade.

This studio has provided us with some amazing games like Dishonored, Prey, and Deathloop. Along with Arkane, Undead Labs, Ninja Theory, Compulsion Games and Double Fine are also at a huge risk. Let’s check out more details in this article.

Marvel’s Blade at huge risk

According to the latest reports from The Verge, Blade project might get affected during Microsoft’s internal restructuring, which is going to happen very soon.

This game was first announced during The Game Awards 2023 and is developed by Arkane Lyon studio in partnership with Marvel Games.

Recently, Bethesda’s Todd Howard gave a positive update on the development of the game. So, it is quite surprising that Arkane Studios and the Blade game might be at risk in the upcoming internal restructuring.

If the reports are true, then Microsoft’s internal priorities might have shifted recently.

Arkane Studios, one of the Xbox-owned studios, is also being evaluated for potential closure.

More Xbox Studios at risk

Marvel’s Blade or Arkane Studios is not the only one at risk. Other Xbox-owned studios, Undead Labs, Ninja Theory, Compulsion Games, and Double Fine are also under review.

The good thing is that some of these studios have been provided with an opportunity to become independent rather than face full closure.

Another report suggests that State of Decay 3 is another game that might be at risk as well. For now, neither Xbox or Microsoft has confirmed or announced anything yet.

Is Marvel’s Blade canceled?

No. There has been no official confirmation that Marvel’s Blade has been canceled. The reports are currently based on industry rumors.

Is Xbox shutting down Arkane?

According to recent reports, Arkane is among the studios reportedly being considered for closure. However, Microsoft has not confirmed this information.

Which other Xbox studios are reportedly affected?

The report also mentions Ninja Theory, Compulsion Games, Undead Labs, and Double Fine as studios potentially impacted by Microsoft’s restructuring plans.

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Mahaksh Chouhan
Mahaksh Chouhan

Mahaksh Chauhan is a passionate gaming journalist who loves for old-school RPGs and turn-based games. With a keen eye for storytelling and a deep understanding of game mechanics, Mahaksh brings an unique perspective to the world of gaming. Inspired by classics like Persona, Red Dead Redemption 2, and Skyrim, Mahaksh is dedicated in sharing the magic of games with readers. When not writing or gaming, Mahaksh can be found cheering on WWE superstars or watching his favourite Anime.