Microsoft is set to begin layoffs across its Xbox division on July 6. The plans reportedly include closing Arkane Studios and canceling the Blade game.
The cuts form part of broader restructuring after a memo from CEO Asha Sharma and Chief Content Officer Matt Booty. The memo stated that the division had become over-extended and that this situation could not continue.
Xbox is also exploring the sale of Arkane Studios. Similar options are under review for Compulsion Games, Double Fine, Ninja Theory and Undead Labs, according to reports.
Union members represented by the Communications Workers of America have called for good-faith negotiations and greater transparency ahead of the job losses. Arkane Lyon, known for the Dishonored series and Deathloop, would be affected if the closure proceeds.
The planned reductions follow earlier rounds of Xbox layoffs in 2024 and 2025 that eliminated thousands of positions.
