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Microsoft Eyes Studio Cuts and Blade Game Cancellation Amid Gaming Division Restructuring

Microsoft is preparing to announce substantial layoffs across its Xbox gaming division, according to sources familiar with the company's plans.

The restructuring could result in studio closures, spinoffs, potential mergers, and canceled games. Among the studios at risk is Arkane Studios, the France-based developer known for the Dishonored series, which was developing a game based on Marvel's Blade.

The planned cuts represent a significant shift for Microsoft's gaming operations following its acquisition of Activision Blizzard. While details remain limited, the company appears to be evaluating which studios and projects align with its long-term gaming strategy.

Sources