Xbox Studio Closures Hit Arkane, Undead Labs as Microsoft Cost Cutting Spree Claims More Victims

The hits keep coming for Xbox and Microsoft Gaming. After weeks of mounting speculation, reports now confirm that even more studios are on the chopping block, and this time it includes some of the most creatively ambitious teams in the industry. Arkane, the studio behind beloved immersive sims like Dishonored and Prey, is reportedly facing closure alongside the cancellation of their Marvel Blade game. The project was originally slated for a 2026 release but has reportedly slipped to next year a