The future of Arkane Studios seems uncertain, with the threat of studio closure or massive layoffs looming over this legendary team. Xbox is actively exploring various options, including finding external buyers or spinning off the studio. The deadline is November 13, when the final deadline to avoid immediate studio closure will expire.
A new report suggests that even though Marvel's Blade is reportedly close to completion, Xbox could still cancel the game. The company might choose to permanently terminate the project to avoid a "Marvel's Wolverine-style situation."
The news comes from Xbox insider Jez Corden. He claims that if Marvel's Blade is not canceled, the project could result in losses for Xbox. A high-cost Marvel game underperforming expectations could be devastating, so the project itself represents a risk.
However, the bigger issue is actually a simple economic calculation. Jez added that before Microsoft sees any substantial return, the game must sell more copies to cover the development budget and Marvel licensing fees.
"We don't know exactly what 'near completion' means. The game might not be that good. Perhaps they want to avoid a situation like Marvel's Wolverine."
Therefore, the company may want to make its balance sheet look better by a certain point in time and consider the question: "After deducting Marvel's share, are the sales of Marvel's Blade enough to justify continuing to invest the remaining funds?"
"And as far as I know, Marvel's licensing fees would significantly squeeze profit margins."
Jez also emphasized that currently, no one outside of Microsoft knows what expectations the company has for Marvel's Blade, nor do they understand the game's actual quality, budget, or projected sales.
On the other hand, considering France's strict labor laws, Microsoft may have to keep Arkane Lyon if the cost of keeping the game and team running is lower than closing the studio.