Beloved Game Studio’s Fate Looks Grim after Xbox Abandons It

In July, Microsoft announced a "reset" for Xbox, a euphemism for the over 3,000 layoffs it plans to make at Xbox between July 2026 and 2027. Those layoffs included a couple studios being forced to go independent, but the fate of others was unclear. Microsoft told Dishonored and Marvel's Blade developer Arkane Studios' management on July 16 that it intended to close the studio. But because Arkane is based in Lyon, France, Xbox has had to adhere to French labor laws and therefore could not close Arkane right away.