Following the end of its fiscal year, Microsoft is reportedly preparing a major restructuring of its Xbox division. At least five internal studios are said to be at risk of closure, including Arkane Studios, the developer behind the upcoming action game Marvel's Blade.
According to The Verge journalist Tom Warren, citing his own sources, Microsoft is considering canceling the development of Marvel's Blade as part of a broader cost-cutting initiative. Earlier, Insider Gaming reported that Xbox leadership is dissatisfied with the game's current development pace and is evaluating all available options regarding both the project and the future of Arkane Studios.
In addition to a potential shutdown, Microsoft is also reportedly exploring the possibility of selling Arkane Studios. The company is said to be seeking buyers or discussing the option of granting independent status to several other studios, including:
- Double Fine
- Ninja Theory
- Compulsion Games
- Undead Labs
Alongside the studio restructuring, the Xbox division is expected to undergo significant layoffs, with up to 1,000 employees potentially affected.
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