DuatDweller on 30/6/2026 at 22:17
(
https://www.techpowerup.com/350428/xbox-to-shutter-at-least-5-studios-and-cancel-upcoming-blade-game)
Great, now who's next Bethesda?
Quote:
When it was reported that Xbox Game Studios was planning on restructuring in the face of plummeting revenue, which would predictably lead to mass layoffs and studio closures, it seemed as though a handful of studios were at risk of closure. Now, according to an insider source speaking to The Verge, that number has jumped to at least five game studios, including Arkane Studios, the game studio behind Dishonored and the upcoming Marvel's Blade. Allegedly, even before the rumored studio closures and layoffs, Xbox was unhappy with how slowly Blade was being developed and was weighing its options for the future of the game and its studio.
Microsoft is supposedly using up the time leading up to the planned layoff announcement to seek potential buyers for certain studios, including Arkane Studios, although sources say that Marvel's Blade, currently in development at Arkane, would be cancelled with the studio's closure. As many as 1,000 workers will potentially lose their jobs in the upcoming wave of layoffs at Microsoft's Xbox Gaming. Currently, it seems as though the layoffs will take place on July 6, but Microsoft has yet to confirm anything regarding the layoffs.
As we reported previously, Ninja Theory, the studio behind the Hellbalde franchise, is also actively developing a new game, although it seems as though the third Hellblade/Senua game in the franchise was simply announced as a bargaining chip to help Microsoft find a buyer for the studio.
Currently, the list of game studios potentially on the chopping block are:
Arkane
Undead Labs
Ninja Theory
Compulsion Games
Double Fine Productions
Tomi on 1/7/2026 at 16:57
Quote Posted by DuatDweller
Currently, the list of game studios
potentially on the chopping block are:
While some closures sadly seem inevitable at this point, it's all just speculation for now, Mr Clickbait. :p These names have been thrown around for some time now, and everyone and their mother claims to have some inside information. I must say that this is the first time I see Arkane's name being mentioned though.
Pyrian on 1/7/2026 at 21:18
Has Arkane even had a hit since it joined? I'm a little surprised it's lasted this long.
DuatDweller on 1/7/2026 at 21:43
wasn't intended as click bait at all.
I took seriously that warning.
Renault on 1/7/2026 at 21:53
I think the original Dishonored did quite well, maybe in the 5-6 million range? But yeah, everything since kind of tanked.
demagogue on 2/7/2026 at 04:22
Prey had over a million sales... Although I'm shaken that it was released already almost a decade ago.
Renault on 2/7/2026 at 16:25
Yeah, but of course he's going to say that.
demagogue on 3/7/2026 at 00:33
Things are always going great until one day they're not.
Kind of like every game that comes out is always something the team is really proud of & knows fans will love, until they don't.
That said, I don't predict anything no more. This timeline is borked.
DuatDweller on 7/7/2026 at 00:32
Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'
1,600 jobs will be eliminated today, the rest throughout FY27
(
https://www.tomshardware.com/video-games/xbox/microsoft-resets-xbox-by-cutting-3-200-jobs-this-year-divesting-five-game-studios-firm-cites-margins-that-are-3-10x-lower-than-comparable-platform-and-publishing-businesses)
Too late jobs cut today
Quote:
Microsoft's gaming division, Xbox, will eliminate approximately 3,200 jobs over its 2027 fiscal year in an attempt to turn around its floundering business. The cuts include offloading four studios with plans to spin off another, though no announced first-party games are being canceled.
Around 1,600 of those jobs are being eliminated today, and the rest will occur throughout the rest of the year.
Quote:
Xbox is selling Compulsion Games (South of Midnight) and Double Fine (Psychonauts, Kiln), back to their management as independent studios, along with their catalogs, intellectual property, and funding for their next games.
Meanwhile, Ninja Theory and Undead Labs are being sold to unidentified "new ownership" and will continue to work on Senua and State of Decay 3 with Xbox, respectively.
The fifth studio, Arkane, is entering consultation to review options due to France's strict labor laws. The company is currently working on Marvel's Blade and previously worked on Redfall and Deathloop.
In Sharma's letter, she wrote that changes will come to Activision, Bethesda and ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios. Some will focus more on popular franchise games. Bloomberg reports that ZeniMax will focus specifically on its biggest names, such as Fallout, Doom, The Elder Scrolls, Quake, and Wolfenstein.
Mojang and King will report directly to Sharma, who wrote that those two studios are the largest in terms of monthly active players, and bring "critical geographic, demographic, and differentiation to XBOX." But in other areas, Sharma is greatly reducing the amount of management for a flatter organizational chart.
