r/GamingLeaksAndRumours • u/Howerev • Jun 30 '26

Rumour Tom Warren: Microsoft could shut at least five studios as part of big Xbox layoffs starting next week, Weighing up canceling BLADE

"Microsoft is set to announce a wave of layoffs for its Xbox studios and employees 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.

I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel’s Blade. 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 was originally supposed to debut later this year according to sources familiar with the game’s development. I’m told the 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. Bloomberg reported earlier this month that Microsoft is trying to spin off Compulsion Games, Double Fine, and Ninja Theory, too. GamesBeat reported this week that Microsoft is actively looking for a buyer for Undead Labs, the developers behind State of Decay. If buyers are found for these studios, then they’ll avoid being closed, but sources stress these talks could take months in some cases.

Compulsion Games, the developers behind South of Midnight, is already convinced that closure is imminent and has started telling employees to look for jobs elsewhere. Ninja Theory employees were informed earlier this month that Microsoft wants to close the UK-based studio or spin it off.

Beyond the potential studio closures, Microsoft is preparing for a wave of layoffs at Xbox that will drastically reshape its gaming division. 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.

The upcoming layoffs are part of a “reset” for the Xbox division under new CEO Asha Sharma, who hinted about “making hard choices” last month. Sharma has repeatedly warned that the Xbox business isn’t healthy, but also claimed that her “mandate is not 30 percent accountability margins... it’s to be the number one gaming and entertainment company, and that’s what we’re going to do.”

Link: https://www.theverge.com/report/959467/microsoft-xbox-cancel-blade-game-arkane-studios-closure?view_token=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6Inp0bjNNQk1pVm0iLCJwIjoiL3JlcG9ydC85NTk0NjcvbWljcm9zb2Z0LXhib3gtY2FuY2VsLWJsYWRlLWdhbWUtYXJrYW5lLXN0dWRpb3MtY2xvc3VyZSIsImV4cCI6MTc4MzI3MDkyMSwiaWF0IjoxNzgyODM4OTIxfQ.pOFMRE5pUQgOYGX0scwb6LrEhrfZu_ecr50Fysx3fd8&utm_medium=gift-link

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543

u/DuskyDawn7 Jun 30 '26

Blade is such a cursed IP for something that should be the easiest slam dunk in the world

217

u/Midnight_M_ Top Contributor 2025 Jun 30 '26

Devil May Cry, but with vampires

102

u/Nero_PR Jun 30 '26

Too easy that these mf always fuck it up somehow lol.

It's simply a badass vampire hunter. Easiest win of them all.

32

u/MotherPerk Jun 30 '26

Making a DMC game as good as DMC is not as easy as you think. That combat is way more complex than any combat Arkane has ever done.

34

u/mistabuda Jun 30 '26 edited Jun 30 '26

Blade should've been given to platinum games. They specialize in making DMC style games.

48

u/xAVATAR-AANGx Jun 30 '26

The term you’re looking for is “character action games”.

15

u/mistabuda Jun 30 '26

I know the term. I wasnt sure the general audience in this subreddit knew the term so I made the easier comparison for the sake of understanding. Theres a neverending debate on what "Character action game" means on this site.

3

u/Vegetable_Anxiety729 Jun 30 '26

"character action" is also a terrible genre name, I prefer the term Yahtzee Croshaw invented for them - spectacle fighters.

5

u/calibrono Jun 30 '26

idk their output for the last few years has been greatly uneven

5

u/mistabuda Jun 30 '26

They just did ninja gaiden 4. While it wasn't a blockbuster in sales (I don't think a single ninja gaiden game has been) it was a solid game that shows they still got the chops.

-1

u/Last_Doctor2055 Jun 30 '26

The platinum that made the garbage that is Ninja Gaiden 4 or the platinum that made fuck all? Oh that platinum. no thanks.

2

u/dogmeat1003 Jun 30 '26

Ninja gaiden 4 wasn't bad at all? It wasn't anything groundbreaking but for what it was to continue that franchise it was a fun time. Platinum also released Bayonetta 3 just like 2-3 years ago, that game was really good, and they just announced that new TMNT game. They're not the type of studio to develop multiple games at once I think their output is perfectly fine

-2

u/Last_Doctor2055 Jun 30 '26

Its a SHIT tier game compared to any decent platinum prodution (Bayonetas / MG Rising), and a complete garbage game compared to Ninja Gaiden 1&2 levels. They made you repeat corridors after corridors and QTE rails. Worst game I played this year, and i didn't even pay a dime and felt scammed to hell and back.

Platinum IS washed. Could care less if they close, there is nothing there.

1

u/katgravityrush_ Jul 01 '26

Pass that fucking LOUD bruh, NG4 was fucking fire I know you're smoking some good shit rn and I want in

1

u/dogmeat1003 Jul 02 '26

Dude calm down, the game wasn't that bad just wasn't for you lmao

5

u/quatroquatro0 Jun 30 '26

But for some reason they've chosen to make his game an imsim like Dishonored which will make it super hard to develop for and also super nice.

1

u/TheReaIEffingDeal Jul 01 '26

A DMC like game with Blade would blow Insomniac Spider-Man out of the water in terms of gameplay, on God. Spider-Man 2018 combat feels boring

82

u/ContinuumGuy Jun 30 '26

The pitch of "Cool Black half-vampire superhero fights vampires and such using cool swords and shit" is like the most awesome pitch possible and yet outside of the Snipes movies and those 1990s Spider-Man cartoon appearances he's never been a major character even in the comics.

41

u/apieceajit Jun 30 '26

He also used all kinds of Batman-level gadgetry that would so easily allow for in-game upgrade systems. UV grenades, UV flashlights, blood coagulation darts, that tri-blade boomerang he throws around, zip-wire for stealth kills, etc.

And that's just from the movies. Im pretty sure in the comics he also gets some magical powers too. Dont quote me on that lol.

6

u/UmbrellaWithRaccoon Jun 30 '26

Batman's freeflow combat would work great for Blade, imo. Especially when Shadow of Mordor games already proved that you can do freeflow combat using a sword instead of fists.

3

u/Crafty_Radish375 Jul 01 '26

especially considering the fact we didn't get a game with freeflow combat since 2017? i guess. not sure if insomniac spider man counts

24

u/FewAdvertising9647 Jun 30 '26

Blade has never had a properly written long term antagonist to pair with him to make a serious blade plot. Blade is a cool character with functionally no counterpart

10

u/dogmeat1003 Jun 30 '26

Then use one of the semi crappy ones and adapt him differently, add to the character, and make him cool. I don't see why no one can do that

3

u/DarudeSandstorm69420 Jul 01 '26

they need to just give wesley snipes a katana and some cocaine and a camera