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Xbox is weighing up canceling its Marvel's Blade game and shuttering Arkane.

Microsoft could shut at least five studios as part of big Xbox layoffs starting next week Sources familiar with Microsoft’s plans tell The Verge that the layoffs will lead to studio closures or spinoffs, potential mergers of studios, and canceled games.

Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company’s Xbox gaming division.

Blade's internal ship date for the game slipped to late 2027, and it’s also running over budget. While Microsoft is weighing canceling Blade, it’s also exploring options to sell Arkane Studios. These layoffs are due to start on July 6th, according to sources, and will hit most parts of Xbox. Rumors have suggested there could be at least 1,000 job losses, and if Microsoft goes ahead with five studio closures, then that’s at least 500 employees impacted before the wider cuts.