According to The Verge, Microsoft is considering shutting down several first-party studios as part of broader cost-cutting measures, with Arkane Studios reportedly among those under review.

It's important to note that Microsoft has not officially confirmed these claims, and the report remains unverified at the time of writing.

Report Says Marvel's Blade Could Be Canceled

Citing anonymous sources familiar with the matter, The Verge reports that Microsoft is exploring the possibility of canceling Marvel's Blade.

The report claims the game was originally targeting a 2026 release before being internally delayed to late 2027. It also alleges that development costs have exceeded expectations, contributing to discussions about the project's future.

According to the report:

"I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel's Blade. Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company's Xbox gaming division."

Neither Microsoft nor Arkane Studios has commented publicly on the report.

Several Xbox Studios Reportedly Under Review

The Verge's report claims that as many as five Xbox-owned studios could be affected by Microsoft's ongoing restructuring efforts.

Studios reportedly mentioned include:

• Arkane Studios
• Double Fine Productions
• Compulsion Games
• Ninja Theory
• Undead Labs

The report further alleges that Microsoft is exploring the possibility of selling Arkane Studios rather than closing it outright. If a buyer is found, both the studio and Marvel's Blade could potentially continue development under new ownership.

However, the report notes that any potential sale discussions could take months to complete, leaving the future of the project uncertain.

Microsoft Has Yet to Respond

Microsoft has not officially addressed the latest claims surrounding Arkane Studios or Marvel's Blade.

The reports arrive amid continued speculation about additional layoffs and restructuring within Xbox following Microsoft's recent organizational changes. While multiple reports have suggested more cuts could occur in the coming weeks, the company has yet to announce any new studio closures or project cancellations.

As with all reports based on anonymous sources, the information should be treated as unconfirmed until Microsoft provides an official update.

What Happens Next?

If the report proves accurate, the coming weeks could be pivotal for Arkane Studios and the future of Marvel's Blade. Whether Microsoft chooses to continue supporting the project, sell the studio, or pursue another path remains unknown.

For now, fans will have to wait for official word from Microsoft or Arkane before drawing conclusions about the game's future.