Report: The Growing Budget For Marvel’s Blade’s Led To Internal Delay; Microsoft Shopping The Developer To New Ownership

On Monday, Microsoft dropped the bomb that many were anticipating: its round of layoffs for the official ‘XBOX Reset’. As part of the arrangements, it confirmed that both Undead Labs & Ninja Theory are being sold off whilst Double Fine & Compulsion Games return to being independent. The same memo also included that already-announced titles will remain in development and fulfil the intended promise of being released.

One project in particular still stands out amid discussions online: Marvel’s Blade. It was rumored that the game was in the crosshairs of being scrapped if developer Arkane Lyon is being shopped around. However, Matt Booty did indicate that an update on the game is anticipated for sometime later in 2026. But it appears that only half of that aforementioned rumor was true.

According to XBOX CEO Asha Sharma in the recent memo this week, she expressed that Microsoft as part of its restructuring efforts for XBOX include looking for potential buyers regarding Arkane Lyon. “In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options,” she says

The concept has been coined for the developer the past couple of weeks as Microsoft looks to lighten on its spending where it can. However, The Verge corroborates the decision by revealing that one major influence was due to the growing budget for Marvel’s Blade. Senior correspondent Tom Warren says the project has “run over budget” which led to the decision ultimately.

And if Arkane Lyon does or does not exit XBOX, there is still the possibility it being a multiplatform release. While new XBOX leadership is clamping down on exclusives as of late, it was previously understood that the game is intended to ship on more than just its home console. In February 2024, Bethesda has been strangely silent on whether Marvel’s Blade is only for XBOX or not. You can read the full report by heading here.

Are you surprised by the recent update for Marvel’s Blade?

Source: The Verge