Xbox is considering canceling Marvel’s Blade game, it’s reported

Microsoft is reportedly weighing many options across its Xbox Game Studios division. It has been reported by The Verge’s Tom Warren that one of the other studios facing a closure is Arkane Studios and canceling the Marvel’s Blade game.

Arkane Studios is best-known for the Dishonored series, Blade was initially planned to debut later this year. However, the new expectation for the game is to release in late 2027.

Earlier this week it was reported by Games Beat that State of Decay 3 developer, Undead Labs is also being considered to close down and they are actively looking for a buyer.

Marvel’s Blade has been an interesting project since its announcement at The Game Awards a few years ago. It was expected by some to be at the Xbox Games Showcase in June 2026, but it was not there. Some reports at the time indicated the game might be in trouble. However, a reputable insider had a source saying the game is still alive. We will see where this goes.

To round it up there is now a total of five studios at Xbox being considered to shut down and they are the following: Double Fine Productions, Ninja Theory, Arkane, Compulsion Games, and Undead Labs.

Layoffs at Xbox are expected to start on July 6. Reports indicate that at least 1,000 jobs will be lost.