A few separate reports paint a bleak picture for the Microsoft-owned video game console maker. Predictably, The Verge reported that mass layoffs and even studio closures could occur around July 6. This may include Arkane Studios, the French developer insult, victimand upcoming marvel blade The game, which still exists only in vague teaser form. The Verge reports that Microsoft may cancel bladeWhich was ready to be launched in 2027.
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Arkane joins the list of at least four other Xbox subsidiary studios that could either be shut down or potentially spun off and sold to someone else. However, it is unclear how likely the latter is. That list also includes another studio state of decay Developer Undead Labs, according to GamesBeat. The next game in that series, stage of decay 3It has been in development for years and is scheduled to launch in 2027 at the time of this publication.
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According to previous reports, Compulsion Games, Double Fine and Ninja Theory are among the list of studios that could cease to exist by next week. One of Xbox’s major issues over the past decade has been its inability to consistently ship first-party games, and the shutdown or closure of several studios is unlikely to help in that regard. According to GamesBeat, layoffs are also likely in other parts of the Xbox business that aren’t otherwise being closed.
All of these developments follow a leadership change at Xbox earlier this year, although the problems go back much further than that. New Xbox head executive Asha Sharma has made some small symbolic efforts to win hearts and minds, such as confirming the existence of Project Helix, a next-generation Xbox console in development. However, Xbox’s reputation among video game enthusiasts is at a historically low level, due to mass layoffs, a lack of attractive software, and Microsoft’s very controversial relationship with the Israeli military.
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