Arkane Studios' Xbox Future Uncertain as Consultation Continues Through 2026

Arkane Studios' future with Xbox remains unresolved as the company continues internal consultations expected to extend through the end of 2026.

Xbox Chief Creative Officer Matt Booty revealed the ongoing uncertainty in a company-wide message detailing the latest phase of Xbox's restructuring. "Consultation with Arkane remains underway and is expected to continue through the end of the year," Booty stated, offering little detail on what the process might yield.

The studio has been at the center of speculation since July, when Microsoft announced 3,200 job cuts and began formal consultations with France's Works Council to review strategic options. The uncertainty intensified after reports in May suggested Microsoft wanted to cancel Marvel's Blade as part of cost-cutting measures. That same month, Bethesda boss Todd Howard had expressed confidence in the project during an Entertainment Weekly interview, saying he "saw some stuff just yesterday and the folks at Arkane are doing a really, really great job."

Marvel's Blade is believed to remain in full development at Arkane Lyon. The studio's official stance continues to be: "Let us cook."

Booty's update outlined outcomes for other at-risk studios. Compulsion Games and Double Fine Productions returned to independent management in August with their intellectual property, back catalogs, and runway funding intact. Undead Labs transitioned on similar terms and will release State of Decay 3 day one on Game Pass with a new publisher. Ninja Theory faced a different outcome after two separate agreements fell through. Xbox will begin consultation with Ninja Theory employees on a proposed closure while exploring other paths forward.