Xbox Might Close Another Legendary Studio On November 13

Published Oct 23, 2026, 11:12 AM EDT

Ben Brosofsky has been writing for Screen Rant since 2022 and editing since 2024. He graduated from Vanderbilt University with a Bachelor's in Cinema & Media Arts. Writing serves as a much-needed distraction from tackling a backlog of Steam games that will never be surmounted.

Xbox has significantly streamlined its operations this year, divesting from a number of studios and undergoing multiple rounds of lay-offs. According to the latest report, we have several more months of further lay-offs ahead. Sadly, a major studio closure might also arrive in November.

Several of the studios that Microsoft divested from this year have fortunately been able to land on their feet, with companies like Double Fine Productions and Compulsion Games re-establishing as independent ventures once again. For months, however, the fate of Arkane Studios has been uncertain, and the deadline to find a solution is now apparently approaching.

According to a report from the French newspaper Le Monde, the official end date for Microsoft's ongoing consultation process with the French Social and Economic Committee is November 13. Under French law, Microsoft was required to spend three months looking for a buyer before closing Arkane's doors, and that clock is about to expire.

Unfortunately, a union delegate apparently thinks that the studio's fate is looking grim. According to the quoted representative, the negotiations are going badly ("les négociations sur le PSE se passent mal"). The unions are apparently looking to buy more time to give the discussions a chance to reach a favorable solution.

For the past several years, Arkane Studios has been working on Marvel's Blade, a game starring Marvel's iconic vampire hunter. Blade has been making headlines for the Marvel Cinematic Universe's struggle to get a movie project moving, but prior to the announcement of Arkane's potential closure, the game seemed like a more surefire release.

In the past, Arkane was responsible for games like Dishonored and Deathloop, bringing interesting worldbuilding and immersive sim sensibilities to accessible, action-focused experiences. Dishonored was developed in cooperation with Arkane Austin, a secondary studio that Microsoft shut down in 2024. Arkane Austin's final game, Redfall, was commercially and critically unsuccessful, but it was also solely responsible for the development of Prey, which was a hit with immersive sim fans.

The remaining Arkane Studios entity consists solely of the original Lyon branch, and its closure would be a sad outcome for a legendary studio. Arkane has consistently delivered critically well-received titles, building a community of loyal fans due to the lack of comparable alternatives in the modern AAA video game scene. For my money, Dishonored is one of the greatest games ever made, and Arkane might be my favorite studio operational today.

While it's not clear how much development remains on Marvel's Blade, which has never publically revealed any gameplay footage, the game seems like a solid bet for success if it ever crosses the finish line. Xbox is clearly focused on reducing costs, however, and the likelihood of a financial return down the line (along with the artistic merit of the work itself) apparently wasn't enough.

Hopefully, Xbox will find a buyer or another viable solution for Arkane's continued existence in the coming weeks, but fans may need to brace themselves for the sad possibility of Arkane's closure.

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