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Arkane Studios’ Future up in the Air Following Brutal Xbox Restructure

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By Alexandria LopezStaff Writer

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  • Primary Subject: Arkane Studios (Xbox Restructure Impact)
  • Key Update: Xbox CEO Asha Sharma confirmed that Arkane Studios is reviewing "strategic options" with its Works Council, leaving the studio's future uncertain but sparing Marvel's Blade from cancellation.
  • Status: Confirmed
  • Last Verified: July 6, 2026
  • Quick Answer: Arkane Studios faces an uncertain future as Xbox evaluates "strategic options" for the studio, though its upcoming game Marvel's Blade is officially safe from cancellation.

Arkane Studios has been affected by a massive restructuring at Xbox.

Previously, it was rumored that Arkane was one of the studios at risk of closure at Xbox. This caused massive worry among fans, as people were concerned this would mean Marvel's Blade would be cancelled.

An official update regarding the studio's status has been revealed. Here's everything we know about the situation.

Arkane Studios' Future Uncertain Amid Xbox Internal Restructuring

On July 6, Xbox CEO Asha Sharma released a statement on X (formerly Twitter) to reveal a major restructuring in Xbox. This includes 3,200 layoffs across the 2027 fiscal year and the release of five major studios.

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Credit: Arkane Studios

The statement briefly touches on Arkane's fate, but it's unknown what will happen to the studio.

"Arkane’s management is beginning required consultation with its Works Council to review potential strategic options," Sharma stated. According to a report from Windows Central, Microsoft is in discussions with the French government to prevent the studio's closure.

Back in June, we received a small update regarding Marvel's Blade. During the 2026 Xbox Showcase, Todd Howard (director and executive producer at Bethesda Game Studios) stated that the "folks at Arkane [Studios, the developers] are doing a really, really great job."

Their fate is still up in the air, and it's unknown if they will remain under Xbox Game Studios at some capacity, go independent, or fall under new management.

Microsoft acquired Arkane, along with Bethesda, when it purchased its parent company, ZeniMax Media, in March 2021.

The company is well-known for creating the Dishonored franchise, as well as releasing other titles like Prey and Deathloop. The studio has also supported Bethesda in the past with major games like Fallout 76.

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