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  1. Games
  2. Action Games
  3. Marvel's Blade

Microsoft extends deadline to "explore options" for Dishonored studio Arkane's future as the team continues work on Marvel's Blade

News
By Anthony McGlynn
Published 26 October 2026

The daywalker may yet live beyond Xbox's restructuring

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Marvel's Blade
(Image credit: Bethesda Softworks)
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Last week, it was reported that Microsoft's negotiations over the fate of Arkane Studios could be reaching an impasse as the deadline approached. The home of the Xbox brand has since confirmed the end date has been extended, allowing more time for a positive resolution.

Since summer, union representatives have been discussing what'll ultimately happen to Arkane in Xbox's grand restructuring with Microsoft. French law requires that any layoffs involving 1,000 or more people include an attempt to consider alternatives before letting people go.

As such, PlayStation's rival has to sit at the table with the makers of Dishonored and look at where the studio could go. Several options are being considered, presumably meaning the team could be sold to another publisher or media group.

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Microsoft's been generally tight-lipped, but in a statement to PC Gamer, it was revealed that the timeline is growing longer. "We have extended the consultation period by one additional month as we explore options," a representative told the outlet, "including finding a partner to support the studio through the development work still ahead. This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process."

The "development work still ahead" is on Marvel's Blade, a project that was announced in 2023. There are conflicting reports on its status, as a union rep told French outlet Le Monde it was nearing completion, whereas PC Gamer now says sources claim it still has years to go.

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Regardless, any and all unreleased games become potential casualties amid the kind of layoffs Xbox is making. But at least it seems like everyone involved wants Blade to see the light of day.

Unfortunately, what comes after is still to be seen. Even if Arkane is bought, the likelihood remains that some jobs will be cut by the new owner. It's a sad situation. Watch this space.

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Xbox COO and ex-Minecraft boss leaves Microsoft after just 3 months in the role

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Anthony McGlynn
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Contributing Writer

Anthony is an Irish entertainment and games journalist, now based in Glasgow. He previously served as Senior Anime Writer at Dexerto and News Editor at The Digital Fix, on top of providing work for Variety, IGN, Den of Geek, PC Gamer, and many more. Besides Studio Ghibli, horror movies, and The Muppets, he enjoys action-RPGs, heavy metal, and pro-wrestling. He interviewed Animal once, not that he won’t stop going on about it or anything.

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