Xbox Considers Canceling Blade, Closing Arkane Austin

Microsoft's Xbox division is preparing to announce a substantial wave of layoffs and restructuring across its studios and employee base next week. Sources familiar with the company's internal plans indicate that these changes will likely result in the closure or spinoff of several studios, potential mergers between existing ones, and the cancellation of various game projects. The Verge has learned that Microsoft is actively considering the closure of at least five studios as part of this overhaul.

Among the projects and studios reportedly under review is Arkane Austin, the studio behind games like "Prey" and "Dishonored 2." The company is also weighing the cancellation of the "Blade" game, which was in development. This strategic shift signals a significant re-evaluation of Xbox's game development portfolio and operational structure.

These impending layoffs and studio closures are part of a broader effort by Microsoft to streamline its operations and focus on key strategic initiatives within the gaming sector. The exact number of employees affected and the specific studios slated for closure or significant changes are expected to be revealed in the coming days. The company has not yet officially commented on these potential developments.