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  1. Games
  2. Dishonored

Arkane founder asks Xbox CEO "how much" Microsoft wants for the studio: "I'm asking for a friend"

News
By Austin Wood
Published 6 July 2026

Raphael Colantonio is now head of WolfEye Studios

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Dishonored: Death of the Outsider character with black eyes
(Image credit: Arkane Studios)
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Raphael Colantonio, the original founder of Arkane Studios, wants to know how much Xbox might take for the studio as it rushes to shed developers in new cost-cutting measures.

As part of sweeping layoffs and studio spinouts at Xbox, Microsoft has begun talks, as part of required consultation, with leadership of Dishonored maker Arkane Studios about "strategic options" ahead of the studio's expected divestment. If Arkane is divested, it would be the fifth severed studio in this wave of cuts, joining Compulsion Games, Double Fine, Ninja Theory, and Undead Labs.

A Twitter post from Xbox CEO Asha Sharma shares the statement sent to Xbox employees this morning. In a cheeky reply, Colantonio says, "Regarding Arkane… how much? I’m asking for a friend". A good old-fashioned tongue-out squinting face, the hallowed XP, seals the deal.

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We – and by we, I mostly mean the ravenous, understandably hopeful fans replying to Colantonio's post – obviously should not treat this Twitter reply as a serious business proposal, but Colantonio's voice is an interesting one amidst cascading Xbox cuts.

Colantonio was president of Arkane for 18 years but left in 2017 to form WolfeEye Studios, creator of delightful action RPG Weird West. He's been critical of Microsoft's handling of Arkane in the past, calling the decision to shutter Arkane Austin post-Redfall "stupid."

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Colantonio has also questioned Xbox's broader gaming strategy. Last year, he argued Xbox Game Pass is an "unsustainable model" that has been "damaging the industry for a decade."

"Subsidized by MS’s 'infinite money', but at some point reality has to hit," he said at the time. "I don’t think GP can co-exist with other models, they’ll either kill everyone else, or give up."

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Game Pass deals have enabled, bailed out, or otherwise funded many games, but the service is demonstrably running into issues within Microsoft. In her statement today, Sharma admits bets on Game Pass, multiplatform releases, and "a broader portfolio of content" led to "meaningful value" but those businesses did not "grow at the pace we expected."

Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested."

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Austin Wood
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Austin has been a game journalist for 12 years, having freelanced for the likes of PC Gamer, Eurogamer, IGN, Sports Illustrated, and more while finishing his journalism degree. He's been with GamesRadar+ since 2019. They've yet to realize his position is a cover for his career-spanning Destiny column, and he's kept the ruse going with a lot of news and the occasional feature, all while playing as many roguelikes as possible.

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