Microsoft's planned overhaul of its Xbox division has left the future of Arkane Lyon and its Marvel's Blade project unclear. The French studio is now in consultation with a works council over potential strategic options. No first-party games have been cancelled, according to the company.
Yesterday Microsoft announced it would cut thousands of jobs and close or sell several studios as part of a reset led by new Xbox head Asha Sharma. Arkane Lyon avoided immediate sale or closure but must follow French labour rules requiring formal consultation.
The studio's game Marvel's Blade remains active. Microsoft confirmed no publicly announced projects were cancelled. Reports indicate the title was already over budget and had been delayed from a planned 2026 release to 2027.
Bethesda Game Studios head Todd Howard said he viewed footage on 21 May and called the work impressive. Arkane Lyon announced the game in 2023 and entered full production late in 2024. It is set in a quarantined area of Paris.
